Category: economics

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Climate Anxiety

The events of several wildfires and a too hot summer in 2026 have raised the level of anxiety related to climate change for many people. From the field of economics we know that the fear of an economic recession can be as bad for the economy as a statistical economic downturn. The anxiety about climate related bad events can trigger or worsen symptoms of depression. The research by Zacher and Kühner (2026) shows that psychological evidence supports this hypothesis. The 1 year follow-up clarified, that the opposite direction of causality is not supported by the data analysis. A pre-existing depression is not worsening due to climate change. The consequence of these results is that the total number of persons with depression is likely to increase with an additional source of depression, for example after experiencing a wildfire. Oceans are warming and the number of injuries on beaches due to poisoning from algae or medusaes (jellyfish) become more frequent as well. Lots of sources for increasing climate related anxieties. In the economic costs of global warming and climate change we frame this as second round effects of climate change.

young curious boy touching jellyfish on beach

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Fountain of youth

The fountain of youth is such an old dream of humans that we are no longer surprised to witness perpetual reincarnations of the same theme again and again. The painting by Cranach the elder (1646) “Fountain of youth” (image below, Gemäldegalerie Berlin) sets the scene for what has become a billion dollar business nowadays. Whereas the old dream was about rejuvenation and cure from disabling diseases, we have become a bit more moderate in ambition to be happy about a halt to aging. Promises are reiterated and made in building on an army of influencers who push many remedies that lack rigorous scientific tests. Two studies published open access in “The Lancet Healthy Longevity” (Witham, McDonald 2026 and Duremdes Nava et al. 2026) provide evidence that in case of obesity and diabetes there are no easy or quick fixes available yet. Healthy longevity still relies mainly on lifestyle (changes), more exercise and careful nutrition rather than additional medication. Medium and long-term consequences of inactivity and unhealthy diets are to easily disregarded or their value discounted. How much are you willing to pay for an additional year of healthy living at age 30 or 70? Simple economics, but quite a successful business model as well.

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Productive organizational energy

Productive organizational energy is more than the sum of individual efforts. Only if you manage to align the productivity of all employees and managers towards the same objectives, you are likely to reap the full benefits of productive organizational energy. The scientific literature is quite clear in this regard. The authors Vogel, Raes and Bruch (2026) highlighted the need to investigate current as well as anticipated Productive organizational energy using a tool called the “energy pattern explorer”. Through the repeated measurement it is possible to learn about trajectories which can be related to leadership styles, external and internal influences as well as to evaluate detailed leadership activities in more detail. Once in office, many leaders no longer deem it necessary to check or evaluate their decision-making processes, although the baseline measures should be taken at that time or before departure of the previous chief executive. About time to take productive organizational energy seriously to mobilize the energy of the many rather than the usual one man show.

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Fuel fertilizer food

The state of world affairs can be summarized in relation to these 3 factors. Fuel, fertilizer and food are the subjects of the hotly debated or even contested resources. From a United Nations perspective the progress in human and economic development hinges on these 3 key issues. The logical order of the Fuel, fertilizer food triad starts with the costs of fuels or energy more generally and leads to the production and distribution of fertilizer across energythe world. This chain of supply determines the quantity of food available to feed the world. Russia‘s war on Ukraine territory has made this logical sequence obvious again. Millions of people were suffering due to the fuel, fertilizer and food shortages due to excessive price hikes. If we add speculatove rent seeking to this we have a scenario where the global South is suffering due to political contests and wars in the North including the Middle East. The current governance structure of the United Nations is largely unable to address this triad adequately. Fair processes of decision-making, control and implementation are crucial in this respect to ensure that all regions independent of economic spending power at sufficiently represented at the international negotiations about fundamental resources. Minimum levels of provision are necessary, even if not sufficient, conditions for our humanitarian responsibilities.  

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Berlin moves it

Yes, we like to move it. Investment in infrastructure follows a long-term economic rationale. In urban areas space is a scarce and, therefore, an expensive resource. In order to use the current space for mobility more efficiently, the use of a longer tram or train is an effective way to increase capacities. Rather than to increase the frequency, which is no longer possible without safety risks, a longer vehicle allows to bring more, and more diverse, passengers on board (kinderwagen and wheelchairs included).
It is a long-term objective to make urban areas liveable for all ages. Tramways which allow a low or, better, no barrier to entry is a necessary condition in this respect. The new “Urbanliner” in Berlin (image below) offers such essentials of access and urban mobility. A single tram is 50m long with 88 seats and 215 standing persons in larger corridors. 300 tram passengers can be compared to about 12 average length cars with at best 15-20 passengers.
A consensus of “how best to move it” in cities pays off in the long-term. Planning has to start about a decade before delivery and needs to survive political cycles going back and forth.

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Berlin Futures

The city of Berlin is projecting itself into the future. Two long-term goals, Olympic Games 2036 or an Expo organization 2035, are potentially looming and all actors have to project themselves as to what role they want to play in such processes. Trades and industries have an essential role to play to realize any vision of the future, at the same time, local trades and industries ask for amenable conditions to do business in the necessarily restricted city space.
There is competition between housing projects and business parks across each metropolitan area as any form of growth needs space to grow in. The “1. Berlin Future Day of business parks” highlighted this potential source of conflict and business leaders exchanged their experiences and strategies how to arrive at manageable comprises.
There are several Win-Win constellations in which for example an additional stop on a metropolitan “S-Bahn” line benefits the business area and all those (future) employees going to and back from work. Infrastructure like transport, mobility, energy, internet speed and security, all play key roles in such visions of future. If networks of organizations address policy makers with well-defined requirements, politicians can act as facilitators to ease sometimes lengthy bureaucratic impediments. The call for public infrastructure investments by private business initiatives is a reminder of the need for public-private partnerships to create promising Berlin Futures. (Image: 1. Future Day of Business areas in Berlin, Senator Franziska Giffey 2026-7-15)

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Soccer business

The FIFA has turned soccer into a juicy business activity. Of course, it has been like this for some decades now. After all professional athletes, coaches, managers and medical teams all around the games have their own high fees. With huge funds involved and millions of supporters the does not lack public support. The national leagues have been topped up with several international competitions which with less clear remuneration structures, but abundant national pride involved. The betting industry is worth billions in soccer alone. This invites all sorts of influences and corruption. As the football judiciary is not independent as a other judicial institutions, interference is apparently more easy with some return-favors between FIFA and host countries. More spectators and more TV-time supercharge profits. In countries that exit early, like Germany, the merchandising products will be forced to sell with substantial discounts. 

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Willingness to pay

The willingness to pay for a product by consumers can be easy to predict. During the June 2026 heat wave in Europe, earlier and more intense than ever before, many people went to retailers offering cooling systems or fans with a determination to buy. However, the retailers who had stocks available found themselves depleted rapidly. The physical urge to find a solution to cool down a hot apartments has pushed the willingness to pay to new heights for such systems. A kind of market failure occurred as too many (short-sighted) consumers wanted to buy a quick fix for a serious personal health-related issue. The widely observed shortage of supply of air-conditioners and fans raised considerable frustrations on all sides, missed turnover and substantial profits for the retailers and lack of physical cooling in a suddenly “overheated” market.
The increased willingness to pay might be redirected to other “greener” solutions to the heating problem, but they often entail behavioral changes. This bi-directional relationship between willingness to pay and (lack of) readiness for behavioral changes is a fundamental principle of behavioral economics and sociology.

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Cooling-Heating Renovation

The public and scientific debate about the added value of investments in renovation of buildings has been ignited by the recent heat wave in Europe. Some renovations that were primarily concerned to safe energy in winter through better isolation of walls, doors and windows found themselves less well prepared with isolation against heat and sunlight. Hence, it makes sense to consider both topics, cooling and heating of buildings, jointly.
Reversible heat pumps can do this trick, if isolation has been installed or applied during renovation already. Additionally, materials used for isolation of buildings should show 2 measures for isolation: thermal conductivity and thermal resistance (R-value). Comparing both gives a fair idea about isolation quality in periods of heating and cooling needs. Albedo values are interesting as well as heat input during a sunny day is welcome in winter, but not during summer heat waves. The commonly used Energy Performance Certificate (EPC) for a building needs to be checked whether it is sensitive to excessive heat as well. (Image: BNF in Paris 2026)

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Climateflation

Central banks have started to deal with the impact of climate change or inflation, short “climateflation”. New and additional inflationary pressures originate in climate change and global warming and they necessitate a closer scrutiny. Heat waves, like 2026-6 in Europe, or earlier ones have created an upward pressure on prices. Loss of agricultural production can be severe due to weather extremes which occur more often and with greater intensity. Such extended hot and dry climates reduce the production of crops and spikes in prices that only reluctantly return to average levels shall cause price inflation (climateflation). These are the short term impacts.
The medium run impacts alter price relations and valuations of in sectors like housing and infrastructure. Badly isolated stocks of housing, schools or hospitals depreciate valuations and the heavy investments needed for isolation of roofs, walls and widows as well as heat pumps to produce cooling shall be in very high demand, which makes price increases more likely across the construction sector. As we expect new devices to be “AI-intelligent”, “mem-flation” will be pushed up as well. These factors can give a push to some economies which are producers of the products in high demand and able to expand production rapidly as well. Just importing higher numbers of air-conditioning systems from other countries shall worsen trade balances.
The major challenge, however, remains our inaction to stop global warming to avoid additional economic and human losses related to climateflation.

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Long run

The future orientation is a principal component of any investment. If a society stops investing its impeding its own ability to adapt and grow. Investment costs today will likely generate returns in the medium or long run. A caveat applies. Some investments may cause long running liabilities, like nuclear energy. The choice of which investment to choose, therefore, is crucial. The investment in people is likely to have a positive return in the long run because it remains an investment that has a high potential to adapt to changing circumstances rapidly. Training as scientist allows to do both fundamental research or to choose an applied field with little reorientation. A focus on the long run has advantages of likely stable returns if previous forecasts in what to invest were correct and reliable. This is the point where besides the difficulty to make good (technological) choices, probabilities enter the equation. The longer the time horizon, the greater the probability that relevant changes, which impact the future returns, shall occur. At best, some of these may cancel out each other in the long run. The potential that some risks are “too big to fail” does not mean that shall not occur (zero probability does not exist in technical nor human decisions. A sound theory of social investment would be a great step ahead for humanity in the 21st century. (Image: Ostend street art 2026-6) 

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China Job Quality

In a small study of 771 Chinese adults, Dong, Wu, Ni & Lu (2021) have reported on the impact of long working hours on job satisfaction. If you work few hours, job satisfaction increases as you work more hours. However, working many hours already, additional work, 40+ per week, does no longer increase work satisfaction in China. In order to preserve the recommended or communist work ethos of a “996 work schedule” (from 9 a.m to 9 p.m, 6 days a week) the authors recommend that managers support more autonomy for workers to fix their schedules as this could increase their job satisfaction. Autonomy to schedule your work and more autonomy in decision-making moderate the impact of long work hours on job satisfaction. Eventually the Chinese comrades might get satisfaction in other areas but work as well.
(Book Exhibits on Karl Marx, Museum Trier Germany Books 2023)

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Job Quality Insights

In the U.S. the Upjohn Institute for Employment Research conducts a major empirical study on job quality (Houseman et al. 2025 1st wave 18.000 respondents). The documentation and the full set of questions (Link) cover 5 dimensions of job quality: compensation and job security; work structure and autonomy; work environment; worker agency and voice; growth and development. The special merit of the survey is that it makes great efforts to cover also new forms of (precarious) self-employment (Abraham et al. 2026). The degree to which can you make autonomous decisions is of relevance to the self-employed as well as it is a part of the job quality of dependent employees in small, large or big firms.
Related to the use of AI for work purposes question 31 asks for the influence on the decision to use new technologies in your job. This is the modern version of a question, whether you have influence on how you do your job. Bullying in a job may come from supervisors, colleagues or customers and respondents report on this. Beyond the answers given for “your main job”, it is noteworthy that the inclusion of questions on a secondary job allow to identify with more precision the precarious forms of how people try to manage to make a decent living in the U.S.A.
(Image: Exhibition Fashion Council Berlin at New National Gallery 2026)

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Autonomy as Job Quality

As many labour markets have been confronted with employment and skill shortages in OECD countries, the interest in what constitutes a good job has increased. After the “decent jobs” campaigns by the ILO, it became crucial to be able to better measure what constitutes a decent job and job quality more generally. The COVID-19 crisis had pushed remote work, but the impact on job quality has been mixed.
A larger empirical effort set out to measure job satisfaction and job quality more precisely. The study funded by the Luxembourg Chamber of Labour (Steffgen, Sischka et al. 2020) puts autonomy at work in the category of “job design”. The findings suggest that autonomy has substantial correlations with almost all other measures of job quality, but in a multivariate setting work-life conflicts, job security, atypical working time, mobbing, time pressure or social demands overwrite the issue of autonomy as a statistically significant impact on general well-being. Social support, however, has the strongest positive impact on overall satisfaction. Solidarity at work drives overall well-being.
The more narrow concept of satisfaction with one’s job find autonomy just as important as career advancement on the 5% significance level. Participation in decision making, income and again social support have somewhat stronger impacts. Autonomy concerns time and tasks. Can you decide what to do, how to do, where to do and when to do your tasks?
Depending on how you answer these questions on a 1-5 scale, the more or less satisfied you are with your job. Of course, leadership styles might interfere additionally. (Image: May 1st 2026 Berlin)

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VOC for VCs

The research into VOCs (short for “volatile organic compounds”) is a busy research field in biology and environmental sciences. It might be of interest to VCs (short for “venture capitalists”) as well in the near future. VOCs are those organic compounds that orginate in animal manure as well as those emanating from plants have an impact on people working there or who are living nearby. Allergic reactions cause millions of days lost in working every spring or summer season. Long-term effects are yet another critical issue in this respect. Whereas the measurement techniques of VOCs have evolved a lot, the interaction effects of different VOCs are slowly producing interesting results that might eventually become of interest to VCs.
Abonde et al. (2026) show that there is a kind of communication between different plants via VOCs, which has an impact on growth and defence mechanisms of some plants. Amateur botanists have always wondered about the anecdotal evidence that some plants or flowers grow well next to each other, whereas other ones seem to deter each other. For crops, this mechanism has been documented and more experimental research of this kind will corroborate the potential of, for example, “natural fertilizers” in future. Remember to think of VOCs the next time you experience scents from animals, plants or flowers as a wonderful research topic with VC potential.

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Marilyn Monroe TM

The image and probably even the person of Marilyn Monroe has become a trademark of its own. Since the choice to change her name and outlook to become or be created as the objectified trademark of Marilyn Monroe, the financial interests to gain money using every image, sound or video have reached above average returns. The profits mostly accrue to those owning the commercial rights. At the occasion of her 100th birthday, this continued rent seeking keeps spinning.
It has been well documented that the early death at just 36 years of age is linked to her exploitation or “commodification” as a trademark rather than a person able to cope with the overloaded imagery of herself. Bookshops, even in 2026-6, decorate their windows with books with her image on the cover as eye catcher. As with few other persons, Marilyn Monroe stands for an objectified person where the property rights of the image keep being exploited long after her tragic death. (Image: Marilyn Monroe, tramage by Bruno James BdF, left and algorithmic on the right. Transbordeur 2026).

 

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Nature as a concept

We all hold implicit or explicit concepts of nature in our minds. There are few countries that have “battled” over the course of history with changing and often “politicised” concepts of nature. The exhibition in the DHM “Deutsches Historisches Museum” on “Nature and German History, Faith – Biology – Power” is convincing with this cross-disciplinary approach to the subject. The chronological structure of the exhibition starts with Hildegard von Bingen’s vision of nature embedded into the huge diversity of plants with almost spiritual power. Admiration of plants and the animal world, however, became an economic resource just like gold and slavery during colonization, being followed by industrialization as the epitome of man’s power over nature. Counter movements have been on the rise in the 2nd half of the 20th century. Another power struggle over how and who defines the dominant concept of nature in the 21st century. As nuclear energy, bombs and waste redefined the long-term consequences of “treating” nature, the battles about the prevailing concept of nature intensify. The exhibition in Berlin 2026 is a fine example of a historical perspective on the relationship between society, nature and technology, where the concept of nature becomes a malleable concept between the other two players or systems. (Image: Metamorphosis of the silk moth, DHM 2026-5)

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Litfaß Advertisement Column

Berlin has renovated some of its early say notice boards and advertising columns. The original „Litfaßsäule“ has already the round column shape where you clued a poster on the sirface so that it was visible to several persons interested to look and read. After more than 150 years after its invention, Berlin has digital advertising columns which resemble the original Litfaß design. Rather than the spectator walking around the column, the column now turns around in a steady manner so that nearby you can see the whole advertising content from all points in the neighborhood. Simple change, but a remarkable improvement in the reach of the advertisement. Retro-lighting increases the duration of the effects as well. Mass communication and commercial innovation can sometimes just improve on an existing marketing channel, and still reach a specifically targeted audience.  

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Mem-flation

A recent addition to the repertoire of inflationary pressures is inflation due to real or supposed shortages of computer memory and microchips. Contrary to other forms of inflation which are induced by supply shortages (like fossil fuels) mem-flation is due to heavy actual and even more proposed investments in data centers, server farms, cloud storage and AI-driven computing capacities. Quantities and quality of microprocessors, which are essential parts in all these devices, might not be able to follow this demand-driven inflationary tendency. The hype around AI, therefore, is a major element in this likely overshooting market reaction. The current market trend is likely to last for another year as the already announced investments of the big data companies have been announced including 2027. The producers of NVIDIA, Samsung, TSMC, SK Hynix, Micron, ST Microelectronics, Infineon, Intel and AMD have realized huge profits from this demand-driven mem-flation.

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Psych-inflation

The economic narrative and measurement of inflation is incomplete without the proper account of the psychology of the price building process and mechanisms. After the 2 previous oil-crises of 1973 and 1979, the panic about not having enough oil and derivatives within the coming months, has lead to prices increases almost instantly. Despite the fact that there is enough oil floating on ships and in pipelines for 3-6 months, depending on estimates, the psychological effect of being eventually short of oil creates “Psych-inflation”. Oil markets use the “Angst of disruption” to make additional profits on people and enterprises’ hoarding behavior. There are powerful interests to exploit such potential shortages as it is a suitable time to reap some extra profits, particularly for those who knew early about a likely military conflict.

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Jobs First

The Berlin demonstration of the 1st of May has chosen to put „Jobs First“. Jobs before profits is a widely accepted claim by trade unions to highlight the importance of work in our societies. Particularly in times of robots and AI taking jobs away, this motto is well chosen as a principal risk in 2026. The current technological innovations seem to aim primarily at the maximization of profits for companies rather than the benefits for society as a whole.  The Berlin parade on the 1st of May managed to achieve a great mobilization, which is a great success for the labor movement and a demonstration of power and solidarity when in many countries basic employment rights and even the 1st of May as a social tradition is attacked.

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Switch off

We have many associations with the imperative “switch off”. Depending on your background or state of mind, you might associate “to switch off” with a mental state, i.e. to calm down. Instead of buzzing about, juggling with multiple projects or deadlines at the same time, the reduction on a few major preoccupations can be achieved through a switch-off. In electrical engineering the switch, as switch-off or switch-on, is a key component of electrical circuits. In programming languages a key element is the switch implemented as an “if-condition” in form of “do if X=True”, in its easiest form.
Let us develop a social science corollary of a theoretical concept of “switch-off”. At times of energy shortages the switch-off option becomes an often overlooked or discarded option. Switch-off an engine to lower overall consumption of energy is a very powerful mechanisms. We do this manually by switching off lights, or as programmed or AI-assisted versions in modern homes. States might impose the switch-off of street lights or loud music after certain hours. In an energy crisis the switch-off option needs to be moved to center stage again as any MegaWattHour not consumed does not have to be (1) produced, (2) moved to local provision and (3) distributed. Additionally there is (4) less waste that has to be taken care of. Hence, the switch-off option is a fourfold win-win-win-win-situation. Who cares about this option as all 4 kinds of savings do not increase a standard measure of GDP in an economy? Broader social science perspectives may offer precious indications that “less can be more“.

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Interests in failures

Decades or centuries after a successful or unsuccessful innovation, an evaluation of the reasons and circumstances of a temporary or permanent failure is informative. In the energy sector we observe another round of a power play in 2026. The more decentralized energy production and energy consumption models have been quickly put aside shortly after the oil crises of 1973 and 1979. The innovations using wind energy or solar energy of the 1980s have been discarded and were commonly considered as failures to provide cheap and reliable energy. An open international economy with expanding global markets for energy were perceived as a superior conventional solution. A country’s balance sheet of imports of energy and exports of higher value goods and services was the predominant economic rational and standard knowledge of the mainstream theory of trade. Other solutions, like a distributed “prosumer” model of energy might have ecological benefits, but would not show up in national GDP-statistics as a large part is home-produced energy and not accounted for in statistical measures of GDP, just like the home produced meals, health and care provided by mostly women. Societies, however, have a choice and an obligation to evaluate the interests in failures as economic and social development hinges on it in the medium to long run.

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Time dependent failure

The collection of failures has an ambiguous relationship with time. Some innovations that are celebrated at a specific point in time shall be considered failures at some later point in time. The Musée des Arts et Metiers has an early version of a solar panel on display dating back to 1996 (see image below, Photowatt 1996). This example reflects the cycles of public as well as expert opinions about technical innovations that either are en vogue or at disgrace. Ecological, design and economic considerations enter into the consideration of what constitutes a failure. Claims of European energy sovereignty may additionally enter into the failure equation. The time horizon over which energy savings are generated is yet another element in the judgement. The more general perspective should take sustainability and depreciation of quality of an object into consideration. The Flops exhibition just scratches a bit on the surface of an important and rather complex issue of the relationship of society, technology and innovation.  Surely, there is more to come in terms of flops and failures, and this is okay in most cases. 

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Electricity generation

On a global scale, electricity generation based on wind and solar has been growing quite fast since the year 2010-2024. Wind and solar have outpaced nuclear energy production as well as the stagnant sector of water based energy production. The Global Electricity Review by EMBER provides the statistical evidence for this evolution in 2025.
The interesting evolution arises mainly because countries with a lower level of GDP have invested heavily in solar and wind energy as this form of decentralized energy production does not need heavy investments in network infrastructure. Countries with larger population growth can keep up with electricity generation according to local needs. Local production and consumption become a key in strategies of local development. The finding that households in low-income countries use on average only 1 kWh per day is an amount that 2 small solar panels can already cater for (example image below).
Countries next to the equator have relatively constant days of 12 hours daylight across a whole year. The feasibility of no-carbon sustainable energy production is driving global growth in this sector.

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Trust or not to trust

… that is the question. The social science research on trust, distrust or corruption is expanding rapidly. As in some other fields of research the increase in research itself becomes an issue of trust in science as the uncontrolled use of AI has produced an inflation of pseudo-scientific papers as well (Link). However, the finding by Spadaro et al. (2020) that interpersonal trust (trusting beliefs and behavior) is influenced by a general feeling of security as well as trust in institutions is supported by experimental and interview-based research.
There are still many challenges to the research in this field. The “feeling of security” has an overall component, but also several subcategories like the objective or subjective feeling of job security, which is dependent on national and collective systems of employment protection legislation. Economic security or security of a sufficient retirement income might be at times considered more important than (in-)security in cities or the countryside. Differences of the mechanisms by gender and age have to be studied in detail as well, which necessitates large data collections on the issues. Churches that used to be considered as trustworthy institutions or the police forces have been accused of abuses of the high trust placed in them in the last few years. These 2 examples demonstrate that trust itself is a dynamic issue with ups and downs over time, rarely constant over time. Game theoretical considerations add further to the view that trust might be used as a strategy just like economic power. (Image: Cathedrale de Meaux) 

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Fossil costs

On 2026-3-5 it has become sufficiently clear that the USA and Israel attacks to topple the terror regime in Iran have repercussions across the world markets of fossil fuels. 1973 and 1979 had told us already the lesson that a reliance on fossil fuels like oil and gas, which is produced in only a small number of countries, can disrupt energy supplies drastically. 50 years later we are much less vulnerable to supply shocks due to the stronger reliance on renewable energy sources. The supply shortages are only likely to happen, but energy suppliers are fast to cash in on these expected shortages. Prove of evidence that energy markets are driven more by expectations than actual availability of fuel stocks.
The advertisement of a Belgian recycling company “Powered by sunshine, driven by electricity” is a perfect summary of how to deal with shortages of fossil fuels (MCA recycling in Brussels, Image: former Brussels stock exchange).

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Short circuit electrification

The electrification of the automotive industries is well under way. However, there is still the resistance of a few warriors from a village called “Gaulle” that fight the imperial forces that dominate these markets. The abundance of cars with batteries and electricity-based traction keeps growing, More utility vehicles shift over to this technology as well. With India and China making significant shifts in this direction, the market has made a significant technological shift until the beginning of 2026. The share of hybrid or solely electric power in cars has risen sharply, but a small segment (10% of diesel engines seems to survive or is only slowly petering out in the coming decade. The publication by Béla Galgóczi (editor) demonstrates the challenges this poses to the companies, their employees and the automotive sector as a whole, as it comprises a large amount of employment and technologies in the traditional supply chain as well. The need for a substantial and costly shift has started, but the downsizing of companies, as electric cars need far fewer pieces than conventional ones, could offer an opportunity, if the skilled employees can be converted to other productive use.
A single sector study offers a lot of “deep” insights into a sector, but the opportunities and openings in other not to distant sectors tend to be overlooked. The European sovereignty in the area of military, standardised technology, which is also still based on many precision and metal components might come as a rescue not only to Ukraine, but to Europe as a whole.

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Rule and divide leadership

We have known the leadership style, which has been coined as “rule and divide”, at least since the Roman imperial period.  In conquered countries it was a strategy to rule by way of creating divides between peoples or regions within a conquered country. The struggle for power within a country is likely to avoid that a powerful opposition to the occupant can build up. What is well researched in the history of international politics, has also been applied to the realm of management strategies. Anthony Galluzzo demonstrates that the strategies of management often attempt to split the workforce in at least 2 different camps in order to better keep employees and their trade unions under some sort of control. For society as a whole, so-called dual labor market theories have hypothesized the existence of such management strategies since the 1980s. With the labor practices in food and grocery deliveries as well as in taxi services such management strategies are applied again. “Old wine in new bottles”, but still seems to sell and catch on. (Image: extract from Butler Charles, 1637, Monarchia faeminina)

 

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Collaborative Leadership

There are many reasons to praise collaborative leadership. Work climate, learning climate and innovation in teams and organizations benefit a lot. Absenteeism from the workplace is a proven and close correlate of hierarchical leadership styles. The theory and empirical evidence is rather clear in this respect, however the effective practice of collaboration among a leadership team is hard to sustain. Not only the ways to reach leadership positions is mostly rewarding tough elbows on the way to the top, the multiple rounds in the competition for top positions tend to train the toughest strategic  behavior. A return to more cooperation and collaboration appears to be a real challenge for persons that eventually arrive in top management positions in politics or business. Administrative science or organization science deserves much more attention especially if we are moving into the age of multilateral international institutions and multinational corporations and organizations. (Image: Les quatre parties du monde soutenant la sphère céleste, 1872, Musée d‘Orsay Paris).