« December 2007 | Main | February 2008 »

January 31, 2008

Times Are A'Changin: Will the 60's (Now) Be Good For Us ?

One of the more interesting memes that's making the rounds in the last week or so is the notion that the reason Barrack Obama is getting so much traction is that he represents a return to the idealism of the 60's. In particular with the endorsement of the Kennedy Clan, especially Caroline's NYT OpEd piece, making the comaprison explicit it's hardly a point that could be missed. Caroline gives all due credit to her children for seeing in Barrack a new and inspiring voice. Inspiration yes ! And if you listen to his acceptance speech comparing him to JFK for eloquence is fair though they spoke about very different challenges. JFK was speaking at the heart of the Cold War and when he talked about "any price, any burden" he was talking as a decorated war hero (look up Navy Cross sometime on Wiki) and the leader responsible for fighting that war (which it was - see John Gaddis Lewis' recent short history). Barrack is talking about healing the self-inflicted wounds of partinsanship and finding a new path forward based on our common interests.

We've got several riffs and reactions to that but let's start with the accompanying YouTube video of Bob Dylan's "The Times They are A'Changin" (btw the other title reference is to George Carlin). Take a listen because it sets the table for a lot of my reactions and reflections and may do so for you as well. Before we go there though there are several other things worth pointing to as well.

Obama's accepetance of the Kennedy's support is one. And while you're there take a gander at Teddy and Caroline's speeches (NOTE: this is THE first time she's ever publically supported anyone). Another interesting discussion is the recent Charlie Rose show on the State of the Union and the speech. The last half is the one relevant for now. But if you'd really like a basis of comparison try JFK's inaugural: Part 1 and Part 2. And as you listen to those try and compare the times in your mind if you can, that is consider those times verses these. With all due respect, well try this:

In your hands, my fellow citizens, more than mine, will rest the final success or failure of our cause. Since this country was founded, each generation of Americans has been summoned to give testimony to its national loyalty. The graves of young Americans who answered the call to service surround the globe.
Now the trumpet summons us again — not as a call to bear arms, though arms we need; not as a call to battle, though embattled we are — but a call to bear the burden of a long twilight struggle, year in and year out, "rejoicing in hope, patient in tribulation" — a struggle against the common enemies of man: tyranny, poverty, disease, and war itself.
Can we forge against these enemies a grand and global alliance, North and South, East and West, that can assure a more fruitful life for all mankind? Will you join in that historic effort?
In the long history of the world, only a few generations have been granted the role of defending freedom in its hour of maximum danger. I do not shrink from this responsibility — I welcome it. I do not believe that any of us would exchange places with any other people or any other generation. The energy, the faith, the devotion which we bring to this endeavour will light our country and all who serve it — and the glow from that fire can truly light the world.
And so, my fellow Americans: ask not what your country can do for you — ask what you can do for your country.
My fellow citizens of the world: ask not what America will do for you, but what together we can do for the freedom of man.
Finally, whether you are citizens of America or citizens of the world, ask of us here the same high standards of strength and sacrifice which we ask of you. With a good conscience our only sure reward, with history the final judge of our deeds, let us go forth to lead the land we love, asking His blessing and His help, but knowing that here on earth God's work must truly be our own.

So, what did you think of Bob's singing - voice is pretty shot isn't it ? Despite the idealistic call to arms, calling for the old generation to make way for a new order, it seems a little odd at best to have a song now 40 years old and sung by a man who has himself sufferred some great wearing aways. Yet it captured the spirit of those times, the hopes and the ambitions. And now ?

And what have we gotten from that earlier call to arms and where are we at now because of it ? Take a moment and try to answer that honestly. Some goods and bads but despite his rhetoric JFK wasn't around long enough to make a major difference though in the historians judgement it was taking him a long time to get up to speed. Who knows. Certainly his successor brought us the greatest raft of social-civil legislation we've ever seen as well as a war that haunts many still. As the result of which we had the dark malaise of the 70s, a recovery (under a Republican who took us back to inspiration - perhaps Obama's comparison isn't so outlandish) in the 80's that laid the foundations for the long-party of the 90's. And challenges ever since to try and deal with all the things left undone, neglected or ignored.

A possible bottom line is that after all the high hopes and intoxication of the 60's people never really sucked it up and did the hard work necessary to make their dreams realities. Some things take years and decades to to work out, when they are sustained by patient and disciplined effort. Speaking as someone with a shelf full of Cat Stevens songs, which my ex-girlfriend once referred to dismissively, as those peace and love songs, I'm all for the ideals. But what is faith without good works.

I may decide that being the world's greatest concert violinist is my goal. Better yet the talent and capabilities might even be there. What about the time and resources ? But most importantly no one no matter how gifted or blessed becomes a great violinist, or football player or whatever without years of effort. Not even a good plumber is by accident. 

Before we go taking the analogy of the 60's too far we need to ask ourselves what did we learn from them, have we learned enough and how do we make our aspirations realities. Now those are the real questions on the table. Can we take this inspiration and, THIS TIME, turn it into reality ?

Or forty years from now will another bunch of overweight, middle-aged nostalgists be sitting around the stage listening to the songs of their fiery youth, singing along and no change ? 

January 30, 2008

The Sage of Omaha: Values, Integrity and the World We Want

The prior post, while our regular weekly collection of interesting stories and links, had a couple of central themes. One of which is what kind of world do you want to live in ? A question that's with us every day in how we live our lives but is also central to this year's elections. On both a personal, micro level and on a community, national and macro level. In fact it is, at least subliminally, THE central question of the election though not yet at center stage among the punditry. It IS however center stage with voters, especially for the younger folks.

I recently ran across an interesting set of comments on these topics by, of all people, Warren Buffett. The Investment guru of the century and the folksy sage of Omaha. Now as it happens he was supposed to be speaking about security analysis and investments. But he began his time with a focus on the values that make for a happy life. And ended it with comments on the nature of the world and what kind of world we'd like it to be. 

Now I'd recommend watching all ten parts of this vidclip series but the picture at right will take you to Part 1 on individual values, which is as good an argument for living a life of integrity, finding good work that you love and being satisfied with a reasonable lifestyle as any I've ever heard. And a pragmatic and workable one as well. Zen-like in fact when you parse it out.

Part 10 which talks about the nature of the world is, in my view even more interesting. It riffs on Warren's idea of the Ovarian Lottery. That if you're in his audience you've already WON because you're an American, a college student and have the drive, ambition and intelligence to leverage your opportunities.

He's not, emphatically NOT, picking on anybody in particular but putting some real ground truths out there (and bear in mind this speech was circa 1998). Here's a paraphrase on his model Supposed God dropped by and asked your help in re-designing the world ? Here's the catch - once you put  your specifications out there then your name goes back in the lottery bowl and gets re-drawn. Suppose God reaches in and pulls out 100 marbles and your name is on one. In '98 the chances were about 1 in 20 at best that you'd even be an American. Of that one maybe 1 in 3 or 1 in 4 would be a college student. Which is no guarantee of anything. Nontheless with a reasonable level of effort such a person is going to live a life that's healthy, fairly well rewarded, eat good food, drink good wine, see interesting places and have a fair shot at doing rewarding work to make their way. What about the other 19 ? Their chances ain't so good.

Well that makes things pretty darn clear to me - I'd like a world where a larger portion had a better chance. Where that portion grew fairly rapidly and their share of things got better and better.

The thing is that's not just me or idiosynchratic - it's been the goal of most people now and thruout history. But now, more than at any other time in history more people have a shot. And more and more will have a shot if we can keep the wheels on the wagon as it roars down the hill.

Let me put it another way. In fact try these three:

  1. Would you rather have a larger slice of a smaller pie or a smaller slice of a much bigger pie ?
  2. Odd paradox - I'm better off when we're all better off. And y'all are better off, all things being equal, when I'm better off. Making it really intellectually painful btw that's a fundamental tenet of economics. And the basis for the socio-biology of our evolutionary history as a social species.
  3. If we don't build a world where everybody has a better shot at a bigger slice there's always a pretty chance we can end up spending all our time squabbling over who gets which slice of a smaller pie. And in the process dropping the whole thing on the floor and making a mess.
So, back to the beginning: what kind of world would you like to live in ? Warren's or Attila's ? 

January 28, 2008

WRFest 27Jan08: What World Do You Want to Live In ?

An interesting question, is it not ? At the end of the day a lot of the sturm und drang in the elections, or elsewhere, are really disputes about just that question. If it wasn't clear then let me admit our attempt at sketching such a world was captured in a series of holiday posts, capstoned by Welcome to Ganesha's World: Obstacles, Foresight and Action, which also lists the prior links and has some interesting readings in its' own right. Several times this last week we've seen some other posts and stories that ask this essential question. But to put it more directly our ideal world is one in which everyone has a reasonable opportunity to live a decent life, develop their own attributes to their best potential and strife is reduced to the workable minimum. We've argued, perhaps a little too implicitly, that such a world is possible and achievable but requires a stable order, a system of justice that people believe is fair, defense against both external and internal enemies and a sound, progressive economic system. There's lots more to say and explore but let's at least take that as a strawman to work with.

In this week's readings you'll find several that point at the topic and, in fact, point at the results. Below you'll find a nice little summary from the Economist that illustrates how more people have made more progress in the last 2+ decades at better lives than at any time in human history. Progress that is in fact the result of the gradual emergence of the key characteristics we listed above across wider and wider stretches of the world. This contrast to another article that finds US "Hegemony" is fading. Well Bravo - not because I'm anti-US. Far from it. In fact I'd argue that the US had made larger efforts in its' history to help the world move in the right directions than any other power in history (THE case in point being made by the Marshall Plan as related in the "Most Noble Adventure"). Rather it's time for the rest of the world to move to "that natural state of opulence" that they can achieve thru justice, good government, fair taxes and a strong defense (paraphrasing Adam Smith of all people). Let me put it another way - even if the US slice of the pie gets relatively smaller it's possible to make the whole pie so much bigger that we're all better off. Oddly enough for the Dismal Science this is a fundamental proposition to which 99% of all mainstream economists would agree. 

  • UPDATE: in browsing the online archives of the Charlie Rose program ran across an interesting program that, by-n-large, captures the points about the US role in being the primary supporter of the current international system. While I don't necessarily agree with all points they largely are on target. BtW on these lines have you ever consider that it's the US Navy which defends the sea-lanes for free access for oil for all countries of the world ? Despite all the rhetoric and arm-waving China, India and Japan count on the USN to protect this vital underpinning of their economies and socieities :) ! 

Some of the other readings below talk about the US elections in which this is becoming, as it really always was, the central question. Combined with the other of character and leadership. At the heart of all these issues, in many ways, lies the question of values and choices. By both citizens and leaders. I found it extraordinarily refreshing and encouraging that most of my fellow citizens don't view questions of "Values" as code-words for social policies, unlike the punitocracies. They view them as critical attributes like honesty, integrity, courage and a willingness to do what's right. Another complement can be found in what occupations we admire the most - if you skim those two excerpts or read the backup articles hopefully you'll find it as encouraging as I do.

One of the most interesting explorations of values, believes and religion is one by ExperimentalTheology who is currently, as both a devote Christian and a professor of evolutionary psychology (think about that for a minute :) !), exploring the meaning of Peanuts as a source of theological insight on values, life and living. Highly recommended. 

At the end of the day the "What World" game is one we can all play. In fact we play it whether we want to or not. So, whether you feel like chiming in in the comments, riffing over somewhere else or just kicking it around, ask yourself the question. Then do yourself and all of us a favor and add two more. 1) How do we get there and 2) what are the mechanisms and institutions for making it work ? Hint take the next step (WRFest 20Jan08(Politics & Policy): Take the Next Step)

General & Special

Somewhere over the rainbow Indeed, for a great many people the way things are is pretty rotten: Burmese monks, for instance, or the Luo in Kenya. Life is not too bright for investors at the moment, either. But is the broader proposition true? Is the world really becoming worse for the majority of mankind? We argue that it is not. To some extent, our qualified optimism is borne out by impartial data. In this article we look at three pieces of evidence: the underlying social conditions in poor countries; poverty alleviation over the past decade; and the incidence of wars and political violence. By those measures the world seems to be in rather better shape than most people realize. In the world as a whole, a stunning 135m people escaped dire poverty between 1999 and 2004. This is more than the population of Japan or Russia—and more people, more quickly than at any other time in history. Poverty alleviation has gone hand in hand with improvements in basic services. These social achievements have not come about by accident. They are, at least in part, attributable to growth. A World Bank study of 19 poor countries concluded that every 1% increase in national income per head translates into a 1.3 point fall in extreme poverty. Hence the importance of the second broad indicator: the state of the world economy. Last year the global economy entered its fifth year of over 4% annual growth—the longest period of such strong expansion since the early 1970s. Technology in its broadest sense—the flow of new ideas—is the only way of getting growth rates up to 5-10% a year, the rate which enables poor countries to catch up with the West. Without it, growth would be dependent on labour and capital inputs, and growth would be just a few percent. To reduce technological progress—even supposing one could do it—would be to condemn poor countries to stay poor. In fact, since the mid-1990s, the incomes of the poorest fifth have risen everywhere except, marginally, in Latin America, where they have been affected by the after-shocks of debt crises. In Asia, the real incomes of the poorest fifth rose 4% a year; in Africa, by 2% a year, faster than the rise for other income groups. The result is that the number of very poor people in the world is falling fast—even though many critics continue to believe that the poor have not really benefited from growth.

Values & Attitudes

The Theology of Peanuts, Prelude: Is Peanuts Funny? The theological richness of Peanuts can be hinted at by beginning with an intriguing question, "Is Peanuts funny?" The answer is yes, of course. But we quickly must nuance that answer by noting that Peanuts is funny in a very dark and peculiar manner. The darkness of Peanuts was signaled in the very first Peanuts strip published on October 2, 1950 (shown above). Charlie Brown walks innocently past two children sitting on the curb. As Charlie Brown approaches and passes by the little boy repeatedly intones, "There goes good ol' Charlie Brown." And yet, as soon as Charlie Brown exits the picture, the boy gives us the punch-line: "How I hate him!" Peanuts is funny. But it is also dark and mean and tragic.

The Words "Moral Values" Mean Very Different Things to the Public and to Pundits Political commentators and journalists often use the phrase "moral values" to mean the issues of importance to some conservatives and members of the "Christian Right", issues such as abortion, gay rights, same-sex marriage and stem cell research. In fact, when the public uses the phrase, only a few people are referring to these issues. Most people who say that moral values are very important to them in deciding how to vote (46% of all adults) say that what they mean are the characters of the candidates – such as honesty, integrity, trustworthiness and their likelihood of "doing the right thing".

The Harris Poll - Firefighters, Scientists And Teacher Firefighters, scientists and teachers are seen as the most prestigious occupations by U.S. adults, while bankers, actors and real estate agents are the least prestigious occupations. Harris Interactive has been asking about the prestige of different professions and occupations since 1977. Over the 30 years since then, there have been some interesting changes:

  • Those who see teachers as having "very great" prestige has risen 25 points from 29 to 54 percent;
  • Those who say lawyers have "very great" prestige has fallen 14 points, from 36 to 22 percent;
  • Scientists have fallen 12 points from 66 to 54 percent;
  • Athletes have fallen ten points from 26 to 16 percent;
  • Doctors have fallen nine points from 61 to 52 percent;
  • Bankers have fallen seven points from 17 to 10 percent;
  • Entertainers have fallen six points from 18 percent to 12 percent.

Teachers are the only occupation, among the 11 tracked since 1977, to see a large rise in prestige; priests/ministers/clergy have seen a one point rise since 1977. One thing to notice is that while Americans have become celebrity obsessed, with gossip magazines and websites as must reads, they do not hold these celebrities in high regard. Actors and entertainers occupy two of the bottom five positions in the list of prestigious occupations showing that while people may enjoy reading about them, they do not regard these occupations as prestigious.

Int’l Affairs

Waving Goodbye to Hegemony Just a few years ago, America’s hold on global power seemed unshakable. But a lot has changed while we’ve been in Iraq — and the next president is going to be dealing with not only a triumphant China and a retooled Europe but also the quiet rise of a ‘‘second world.’’

A New France in the New Middle East: Forget Glory FOR France, the symbolism could not have been more powerful. On a trip to the United Arab Emirates 12 days ago, President Nicolas Sarkozy announced a decision to open a permanent military base there. It will be France’s first such base in a country that had not been its colony, and will make France the only country other than the United States with a permanent military presence in the Persian Gulf. French officials portray the move as part of a larger effort by Mr. Sarkozy to project France’s influence throughout the Middle East. In the eight months Mr. Sarkozy has been president, he has visited eight countries in the region, announcing plans to build nuclear reactors, sell weapons, resolve crises and deepen cooperation along the way.New, for sure. But maybe not quite grand, at least in the sense of a sweeping vision. Some people here, and in the Middle East, have even begun to wonder in just what direction all this energy and motion will take France. Now, the American setback in Iraq, the winding down of the Bush presidency, a longing in the region for an alternative to American power, a turn inward by Britain’s new leaders and soaring prices for oil have created opportunities for Mr. Sarkozy. President Sarkozy is seizing them in a distinctly post-imperial style; he defines the region as a mosaic to be worked on bit by bit, not as one huge prize that, if won, would restore France’s lost glory. So this is not about nostalgia. Nor is it an effort to lump the Muslim world into one great “arc of crisis” from Morocco to Bangladesh due to the never-ending terrorist threat, even though France’s foreign intelligence service tends to do just that.

Prius Designer Says Toyota-Led Industry Fails to See Doom of Oil Addiction ``This is what the end of the age of oil means,'' says Reinert, 60, who plans the vehicles Toyota will make in a quarter century as national manager for advanced technology at the U.S. sales unit in Torrance, California. ``The car-based culture, the business-as-usual of building cars and trucks, is going to change dramatically.'' Since Henry Ford introduced the moving assembly line in 1913, the world's automakers have relied on a single source of power -- the gasoline-dependent internal combustion engine. Today, the twin threats of $100-a-barrel oil and global warming are convulsing an industry addicted to cheap, abundant petroleum. Auto companies, already hurt in 2007 by the lowest U.S. demand in a decade, are struggling to perfect cars that run on ethanol, diesel, natural gas, hydrogen and household electricity.  They're under the gun from California and more than a dozen other states to cut carbon exhaust by 2020 with vehicles that must get 44 miles per gallon (19 kilometers per liter) of gasoline, about double today's average. Reinert says automakers are endangering themselves by basing sales and profits on the big, fast cars that many U.S. customers say they want in 2008. In five years, as oil shortages and global warming intensify, car companies may be out of step with drivers' demands for fuel-efficient vehicles. Even worse, degrading stretches of the planet like Fort McMurray will only delay --not prevent -- the time when the world must function in a post-peak- petroleum economy.

Politics and Policies

Obama Gains on Clinton, McCain Moves Up as Giuliani Stumbles, Poll Shows The race for the Democratic presidential nomination is tightening as voters say they want both Hillary Clinton and Barack Obama on a national ticket, a Bloomberg/Los Angeles Times poll shows. Clinton leads Obama, 42 percent to 33 percent, down from the 24-point advantage she held in early December. Three out of five supporters of each candidate say they would like Clinton or Obama, if nominated, to choose the other as a running mate. Among Republicans, John McCain tops the field with 22 percent, followed closely by Mike Huckabee and Mitt Romney. The biggest change in the poll is the shift from former front-runner Rudy Giuliani, whose support plummets almost by half to 12 percent since a survey last month. While the Democratic race is really down to two candidates and the Republican field remains ``wide open,'' the poll shows that no contender in either party can claim the title of front- runner, says Susan Pinkus, the Los Angeles Times polling director. ``It's anybody's guess who's going to win.'' Democratic voters are happiest with their choices, the Jan. 18-22 poll found. Three out of four say they are satisfied with the field, compared with a little more than half of Republicans. That satisfaction also shows up in hypothetical general-election matchups; the poll has Clinton and Obama beating every Republican with the exception of McCain, who rates a statistical tie with both.

Big Win for Obama in S.C. After a heated campaign, Illinois Sen. Barack Obama transcended racial lines to prevail in the first southern state to hold a Democratic primary. The decisive South Carolina victory changes the shape of the Democratic race and returns Mr. Obama to co-front-runner status. South Carolina was seen as a must win for Mr. Obama, who came in first in the Iowa caucus but trailed Sen. Hillary Clinton in New Hampshire and Nevada. The results give the Obama campaign new momentum as it moves into the nearly two dozen states that go to the polls on Feb. 5 or "Super Tuesday." Last week, the bickering between Mr. Obama and former President Bill Clinton intensified. Mr. Clinton campaigned hard on behalf of his wife in the state -- the Clinton campaign was banking on his huge appeal with African-American voters to help drive support for his wife. The approach didn't work in Mrs. Clinton's favor and may have even turned off voters in the states that will hold primaries or caucuses on Feb. 5. Exit polls showed that nearly six in 10 voters said the former president's efforts for his wife was important to their choice, and among them, slightly more favored Mr. Obama than the former first lady. Mr. Obama frequently complained that he was running against "two Clintons" and both had been distorting his record. More good news hit the Obama campaign Saturday night when Caroline Kennedy endorsed Mr. Obama in a New York Times editorial titled, "A President Like My Father."

  • A lot of my correspondents of one sort or another have expressed grave disappointing with Billary's  "off-the-leash" behavior. The good news from my point of view is that the primaries are doing what they do best - the real person is coming out from behind the personna. If you'd like another take try this from BigJ on his Eastern-Hemishpere blog:CLOWN STATUS: Weekend Edition!

GOP Presidential Prospects Darken Just when it seemed Americans couldn't get any gloomier about the country's direction, they have. That finding, from the latest Wall Street Journal/NBC News poll, could leave Republicans the gloomiest of all, as prospects for their party darken further in a presidential election year. Amid a weakened economy and market turmoil, President Bush's stock has fallen again as he prepares to deliver his final State of the Union address next week, underscoring the burden he could pose for his party's presidential nominee in the race to November's election. As for his would-be successors, the remaining Republicans candidates have dropped further behind in hypothetical match-ups against potential Democratic standard-bearers Hillary Clinton and Barack Obama. The exception is Arizona Sen. John McCain, who has revived his still-fragile candidacy and takes the lead in Republicans' contest for the first time in the poll. He runs even with both Democrats in hypothetical contests -- 46% to 44% against Mrs. Clinton, and a 42% draw against Mr. Obama. Both results are essentially the same given the poll's margin of error. In a Republican field that is down to five candidates from originally twice that, Mr. McCain is the top choice of Republicans, with 29% support versus 23% for former Arkansas Gov. Mike Huckabee. Mr. Romney, who tied former New York City Mayor Rudy Giuliani for the top spot in last month's poll with 20% support each, remains at that number.

Cramer's Comeuppance vs Pump Priming Realities Well some more interesting news hot off the press, so-to-speak. One both amusing and  schadenfreudish but also informative. And the other a matter of both public policy and another reality check. The latter is the recent announcement that House leadership and the White House have reached an agreement to pass an economic stimulus package that's actually fairly sensible as well as astounding for its' speed. Though it still has to make it thru the Senate where further wrangling is all to likely. The former is Jim Cramer being called out by Rick Santelli on CNBC for now trying to sound like a Bear when in fact he was not only bullish for most of last year but stayed bullish weigh into the year. Some more readings are below. In one of them Larry Summers lays out the primary criteria for a tax stimulus: 1) quick, 2) targeted with the right instruments and 3) temporary. Another reading is a Brookings survey that takes a deeper dive but is nearly identical. So on that basis what do we think. Well...

·         Plan to Jolt the Economy, Senate Pressured to OK Stimulus Deal

Market Bloodbath Highlights Cracks in Capitalism Any banker, trader or investor asked to invent the perfect market environment for creating wealth beyond the wildest dreams of avarice would come up with conditions akin to those of the past decade. So what went wrong? The financial community, through greed, stupidity and hubris, has fouled its own sandpit. The era of munificent money- making conditions -- gentle regulation, ever-faster information flows, freely available credit, unprecedented access to global investors and oil-enriched buyers of anything yielding north of zero -- is ending with an almighty bang, not a whimper. Realtors appraised homes at fictitious levels. Lenders granted mortgages to people who couldn't pay. Bankers created Frankenstein instruments they couldn't value. Traders invented prices they couldn't justify. And investors bought securities they didn't understand.

  • O Wise Bank, What Do We Do? (No Fibbing Now) But for all its power, the Fed cannot change this troubling fact: trust in much of the financial system — banks, brokerage houses, ratings agencies, bond insurers, regulators — has been severely damaged by the subprime mortgage crisis. And that damage cannot be reversed with a quick cut in interest rates. It is not just a matter of attracting fresh capital from overseas to replace some of the $100 billion lost or written off so far — a figure that is sure to grow. The underlying problem for some of the world’s largest financial firms is restoring confidence, among big institutional investors and 401(k) nest-egg holders alike. That’s what has to happen if the capital markets are to run smoothly over the long term

Culture and Science

Why Sci-Fi Is the Last Bastion of Philosophical Writing  Technically, After the Siege is a work of science fiction. But as with so many sci-fi stories, it works on two levels, exploring real-world issues like the plight of African countries that can't afford AIDS drugs. The upshot is that Doctorow's fiction got me thinking — on a Lockean level — about the nature of international law, justice, and property. Which brings me to my point. If you want to read books that tackle profound philosophical questions, then the best — and perhaps only — place to turn these days is sci-fi. Science fiction is the last great literature of ideas. From where I sit, traditional "literary fiction" has dropped the ball. I studied literature in college, and throughout my twenties I voraciously read contemporary fiction. Then, eight or nine years ago, I found myself getting — well — bored. Why? I think it's because I was reading novel after novel about the real world. Teenagers love to ponder such massive, brain-shaking concepts, which is precisely why they devour novels like Philip Pullman's His Dark Materials, the Narnia series, the Harry Potter books, and Ender's Game. They know that big-idea novels are more likely to have an embossed foil dragon on the cover than a Booker Prize badge. Adults and serious intellectuals used to love ruminating over this stuff, too. Thought experiments formed the foundation of Western philosophy — from Socrates to Thomas Hobbes to Simone de Beauvoir.


'The Cure Within: A History of Mind-Body Medicine' Is there a medical link between mind and body? A Harvard professor examines the history behind the idea. Sometimes, of course, standard treatments don’t work or simply don’t exist. And sometimes tests fail to uncover any physical cause for a patient’s suffering at all. But such failures, Harrington argues, explain only part of the widespread dissatisfaction with mainstream medicine. Of equal or greater import, she writes, is medicine’s failure to address the “existential” aspect of illness, to answer the questions “Why me? Why now? What next?” Doctors usually frame their answers to such questions in language that forgoes any meaning for the individual. Whether cancer will return is a matter of statistical likelihoods derived from the study of large groups of patients — or, in lay terms, “bad luck.” There is no meaning in randomness, and for the patient no sense of control. Perhaps someday genomic research will help predict the particular behavior of each individual’s cancer, but for now doctors cannot say with any precision who will relapse or why. As patients, we may be modern in many ways, but we find such uncertainty hard to accept. Throughout history, Harrington rightly argues, people have strained to make “personal sense” of illness and suffering. Western cultures, like all cultures, have traditionally provided people “a stockpile of religious, moral and social stories to help them answer the great ‘why’ questions of their suffering, and to connect their experiences to some larger understanding of their identities and destinies.” But today, she writes, the story offered by mainstream medicine “is as impersonal as they come.”

Musings on The Secular Age: And the Christian and the Atheist Shall Lie Down Together Taylor's thesis in The Secular Age is that secularism and exclusive humanism (as opposed to devout (i.e., "theistic") humanism) cannot be solely explained by the rise of reason and rationalism, what Taylor calls the "subtraction story," the story that once we "subtracted out" religious superstition (via the ascent of reason) humanism sprung forth. In this account religion was a kind of prop that needed to be discarded. Once religion was tossed on the trash heap of human history reason and virtue could proceed unimpeded. The trouble is, for secular intellectuals governed by this story, religion is still with us. Thus, for humans to make further progress the last remnants of religion need to be systematically killed off and eradicated. God isn't dead yet. There is still killing to be done. So says the work of Dawkins, Hicthens, and Harris.

January 25, 2008

WRFest 20Jan08(Politics & Policy): Take the Next Step

Well here's the final post for last week's readings. The prior two covered enough ground we decided to delay these. Below you'll find interesting readings on the current US election, including an interesting piece on "How Voters Think" that tries, somewhat sucessfully, to address the surprises so far in this campaign. There are also two pieces analyzing the underlying economics of racial behavior and the costs/benefits of the Iraq War. Both of which we highly recommend. Another piece on the "Durably Demoractic" nature of American society and another on a recent discovery by Chinese scientists on the main biological pathways of drug addiction.

You may be wondering what they all have in common. Well, to some extent they are indeed our usual potpourri of interesting readings across a spectrum of interests. But one thing they do have in common, particuarly the readings on racial spending patterns and the costs of Iraq, is taking a look using a disciplined approach to understanding the deeper structures and casul patterns of things. Tom Sowell makes an interesting point when he calls for taking the next step. (Basic Economics: A Common Sense Guide to the Economy,Applied Economics: Thinking Beyond Stage One)

As he point out all too often you hear people and policy makers complaining about the unintended consequences of things. The so-called "Black Swan" effect. But what actually happens is that the unfortunate outcome is usually perfectly natural and likely, and not as afterwards thinking but beforehand. But almost always policy is made focused on intent without asking what are the changes in incentives created. In other words what is the likely behavior going to be as a result of the policy. And furthermore have you asked and "then what happens ?". It's this taking the next step based on basic investigations of the deep structure that all too often result in unfortunate outcomes. In other words on a willful denial of the nature of things combined with a deliberate blindness. Bluntly, people and policy is made by deliberately and determindedly screwing up.

So instead of relying on hope we prefer to actually examine things in a systematic AND systemic way to try and understand what's going on. Of course a major part of such an approach is the understanding that most decisions will be, as the Buddhists put it, "UNSKILLFULL" :).

The readings on spending patterns and Iraq are perfect exemplars of digging in and understanding things as they are.

BtW - the prior post on the problems in the economy and the policy moves are a good example in two ways. First, the consequeneces of such blindness that creates a mess. And second, what happens when you've got to clean it up.(Pump Priming, Rates Cuts and Crameritis: More on Economic Outlook).

Finally there are more posts in the Science & Culture section - one on the searches for new forms of artificial life that could be as big a breakthru as Pharmaceuticals, Plastics and Electronics were post-WW2. Another on Europe's strangely peaceful interlude since then, which is fascinating inasmuch as it talks about the Continent that brought us all our World Wars and now is the most peaceful (albeit artificially). And the final two excerpts - one on leaning to appreciate wine based on your own preferences instead of the common shibboleths. Point made ? :) And another about a Man who became a deserved Icon - Beethoven's last symphony and his life. 

Values & Attitudes

Cos and Effect A few years ago, Bill Cosby set off a firestorm with a speech excoriating his fellow African-Americans for, among other things, buying $500 sneakers instead of educational toys for their children. In a recent book, Come On People, he repeats his argument that black Americans spend too much money on designer clothes and fancy cars, and don't invest sufficiently in their futures. Many in the black community have been critical of Cosby for blaming poor people rather than poor public policies. Others have defended Cosby's comments as an honest expression of uncomfortable truths. But notably absent from the Cosby affair have been the underlying economic facts. Do blacks actually spend more on consumerist indulgences than whites? And if so, what, exactly, makes black Americans more vulnerable to the allure of these luxury goods? Economists Kerwin Charles, Erik Hurst, and Nikolai Roussanov have taken up this rather sensitive question in a recent unpublished study, "Conspicuous Consumption and Race." Using data from the Consumer Expenditure Survey for 1986-2002, they find that blacks and Hispanics indeed spend more than whites with comparable incomes on what the authors classify as "visible goods" (clothes, cars, and jewelry). A lot more, in fact—up to an additional 30 percent. The authors provide evidence, however, that this is not because of some inherent weakness on the part of blacks and Hispanics. The disparity, they suggest, is related to the way that all people—black, Hispanic, and white—strive for social status within their respective communities. Every society has had its equivalent of the $150 Zoom LeBron IV basketball sneaker, and thanks to Thorstein Veblen, we have a pretty good idea why. As the Gilded Age economist famously put it, "conspicuous consumption of valuable goods is a means of reputability to the gentleman of leisure," and "failure to consume a mark of demerit." To consume is to flaunt our financial success; it's how we keep score in life.

Politics and Policies

How Voters Think In reality, we voters — all of us — make emotional, intuitive decisions about who we prefer, and then come up with post-hoc rationalizations to explain the choices that were already made beneath conscious awareness. “People often act without knowing why they do what they do,” Daniel Kahneman, a Nobel Prize winner, noted in an e-mail message to me this week. “The fashion of political writing this year is to suggest that people choose their candidate by their stand on the issues, but this strikes me as highly implausible.” Nobody really knows how voters think, especially during primary seasons when the policy differences are minute, but it wouldn’t be surprising if the cognitive chain went something like this: After seeing a candidate for 100 milliseconds, voters make certain sorts of judgments based on expressiveness, facial structure, carriage and attitude. Alexander Todorov of Princeton has found that he can predict 70 percent of political races just by measuring peoples’ snap judgments of candidates’ faces. Then, having formed an impression from these thin-slice appraisals, voters rack their memory banks. Decades ago, Kahneman and Amos Tversky argued that human judgment is less a matter of calculating probabilities and more a matter of trying to fit new things into familiar patterns.

The Next President, Revealed  Economic formulas are proving to be better at predicting the presidency than opinion polls. Why the Republicans are in trouble. In recent decades, economists have invented their own statistical voting models, which in some cases have better track records for forecasting outcomes than conventional polling. Built on the basis of data gathered from elections going back many decades, these models take variables relevant to the election—such as economic statistics, polling figures, and how long the incumbent party has held the presidency—and use them to determine which party will win the White House. To see how recent developments have affected the presidential race, I took the latest forecasts from the Federal Reserve Board, which predict that G.D.P. growth could be as low as 1.8 percent this year, and plugged them into Fair's equation. The result: a clear victory for the Democrats, with 51.4 percent of the two-party vote. (While this is good news for the Democratic field, it isn't definitive, as Fair's margin for error is about 2.5 percent.) These odds indicate that bookmakers believe the likelihood of a Democrat triumphing in November is 66.6 percent, whereas they see the chances of a Republican winning to be 40 percent. In short, the betting market concurs with the voting models: The Democrats hold a significant advantage, but the race is far from over.

A Center Called McCain Although John McCain is too conservative, and his temperament and age raise concerns, he is too honorable to dismiss at a moment so critical to America’s standing in the world. Nobody’s been right all the time on Iraq, but Senator John McCain has been less wrong than most. He knew a bungled war when he saw one and pressed early for increased force levels. He backed the injection last year of some 30,000 troops, a surge that has produced results. Modest results, yes, and violence has blipped upward again this month, and, yes, Iraqi political progress is slow. But progress is always slow when a population terrorized over decades is freed. Violent attacks were down 60 percent in December from their 2007 high and refugees have begun to go home. But he’s categorical in his opposition to tyranny. Saddam Hussein, as Nick Cohen, a British author, observes in his important book on liberal hypocrisy in Iraq called “What’s Left?,” represented “not a tin-pot dictator but real Fascism,” complete with a “messianic one-party state” and “armies that swept out in unprovoked wars” and “secret policemen who organized the gassing of ‘impure’ races.” This death-and-genocide machine killed about 400,000 Iraqis in internal persecutions and another million or so people in Iran and Kuwait. When you’ve been imprisoned, as McCain has, you know what terror means: death of spirit, soul, life itself. Saddam’s nightmare ended in a misbegotten, mishandled, bloody and costly war. Does Bush’s fraudulent, blunder-ridden rush to war matter more than the prizing of 26 million human beings from a sadistic tyrant who modeled himself on Hitler and Stalin? That core question has seldom, if ever, been dignified by honest debate through all the verbal Iraq wars fought on U.S. soil.

  • The Anti-Charm Offensive For a while this week, the Democratic presidential race seemed to have morphed into one of those movies like “Singin’ in the Rain.” Two guys, a gal and an adventure. What a glorious feeling; they’re happy again. “It’s great that we have this young man from the South who grew up in a mill town, an African-American who has so much to give our country, and we have a woman. This is good news for our country,” Hillary Clinton told a rally of her supporters after the good-vibrations Nevada debate. If the Republicans were a movie, they’d be one like “The Dirty Dozen” in which a mismatched bunch of oddballs get thrown together to accomplish a dangerous mission. (Who will survive?) Romney could play the irritating rich guy.

What Iraq will cost The publicly available information indicated that if we went into Iraq, it would involve less than one-third as many troops, implying an annual cost of between 0.5% and 0.7% of GDP. I assumed the war could take as long as 2 1/2 years, which led me to my upper estimate of $200 billion. One can argue about whether this or any other expenditure is a wise one, but any expenditure of this order of magnitude is simply not going to roil the domestic economy. Yet my estimate conflicted with numbers circulating in Washington that were improbably low. Five years after the fact, I believe that one of the reasons the administration's efforts are so unpopular is that they chose not to engage in an open public discussion of what the consequences of the war might be, including its economic cost. I think that having done so not only would have been good government, but would also have been good politics. If the Bush administration was less than candid about the cost of the war, the war's current critics are conveniently forgetting that there were costs involved in not going to war. If Saddam had not been deposed, it is not as if the power players of the Middle East would be currently sitting around some campfire singing "It's a Small World After All." Nor is it likely that we would have no troops in the region. To understand the true cost of the war, budgetary or otherwise, one has to go back to consider what the realistic alternative was at the time. Under the alternative scenario of the time American forces would have been stationed around Iraq for years, many of them in harm's way. The true cost of the Iraq war, therefore, is not the pricetag we see in the papers, but the cost of that conflict relative to the alternative scenario on offer. A war for home territory is the most expensive one to lose, but even though the American heartland is not directly at stake, there are still huge consequences to whether the U.S. is perceived as winning or losing in Iraq. Like it or not, a number of significant countries in the region depend on the perception that America would block any threat to their peace and security. A precipitate American withdrawal suggesting a lack of American commitment to the region or, worse, the perception that America had been defeated, could lead to a major regional realignment. Most countries in the gulf would have to reconsider their security situation and choose either between rearmament (including the acquisition of nuclear weapons) or cooperation with Iran, which would be happy to fill the vacuum left by an American defeat or withdrawal. This would ultimately cost us in ways far beyond the ability of dollars to measure. On the other hand, an American success in Iraq could also change the course of history in the Middle East, where the U.S. has made huge investments in security over many decades. A stable Iraqi government selected by its own people would be a first in the Arab world. It would suggest that there is a third alternative to the current choice between repressive regimes and Islamic fundamentalism.

WRFest 20Jan08(Economics): Oops...Recession Ahead Economics and economic policy is one of those things that most people ignore, take for granted and find making their heads hurt. Unfortunately, for good or ill, it conditions most of the rest of what we can do. Just in case you were living in another world, or paying attention to purely "practical" things last week not only did the major US markets continue tanking but the escalating chorus of cries for some sort of combined monetary and fiscal stimulus effort to short-circuit an increasingly likely US recession were capstoned by Ben Bernanke's Congressional testimony and Pres. Bush's call for a $150B fiscal stimulus program. Please understand that these efforts are necessary and vital but are unlikely to prevent a recession that's likely already underway. The real goal here is to a) mitigate the damage and b) prevent it from metastasizing into something much worse given the weaknesses in credit markets and the housing sector. And also c) to keep worldwide problems from feeding back to severely, as it increasingly turns out that the rest of the world is not in fact decoupled from the US.

First, Kill All the School Boards If the United States was to avoid this awful chasm and the social upheaval it seemed sure to create, he thought, education was the answer. Now he was seeing firsthand the Prussian schools that were the talk of reformers on both sides of the Atlantic. In Massachusetts, Mann's vision of "common schools," publicly funded and attended by all, represented an inspiring democratic advance over the state's hodgepodge of privately funded and charity schools. But beyond using the bully pulpit, Mann had little power to make his vision a reality. Prussia, by contrast, had a system designed from the center. School attendance was compulsory. Teachers were trained at national institutes with the same care that went into training military officers. The United States spends more than nearly every other nation on schools, but out of 29 developed countries in a 2003 assessment, we ranked 24th in math and in problem-solving, 18th in science, and 15th in reading. Half of all black and Latino students in the U.S. don't graduate on time (or ever) from high school. As of 2005, about 70 percent of eighth-graders were not proficient in reading. Why is local control such a failure when applied to our schools? After all, political decentralization has often served America well, allowing decisions to be made close to where their impact would be felt. But in education, it has spawned several crippling problems:

Analysis: Universities Overproduce Ph.Ds College students are getting a raw deal, a recent New York report asserted. The problem is they're taking too many classes from part-time, or adjunct, professors. But that same report unwittingly revealed something about how higher education is more culpable than it likes to admit when it comes to creating the problem.The issue is a huge one in higher education far beyond New York, with about half of the nation's college faculty now on part-time contracts. Adjuncts are cheaper for colleges, but they often lack the time and resources for focused teaching, and research shows students' performance suffers if they are taught by part-timers too often. In its report last month, a 30-member commission called for New York's state (SUNY) and city (CUNY) systems to alleviate the over reliance on adjuncts by hiring 2,000 more full-time faculty for their 87 campuses. But just one page away, the report also called for adding at least 4,000 new doctoral students. There's a connection between those numbers that deserves more attention. In many fields, there are already too many Ph.Ds awarded for the full-time academic posts available, creating a surplus of likely jobseekers. That pool becomes adjuncts, who command wages and benefits so low that universities find them irresistible hires.

Culture and Science

Durably democratic  “Americans like to think of themselves as a people eternally young. But the reality of our public life is very different,” he writes. The constitution, rarely amended, is nearly a quarter of a millennium old. America's legal system and political parties are among the most durable anywhere. Even in the revolution against King George and his pesky emissaries, Mr Keller sees not a clear-cut break with the past but “the product of nearly two centuries of colonial experience”, in which the settlers took old-world ideas of liberty and expanded them. His conclusion is that: “This is still a Republic worth keeping, with a polity capable of doing the job.” Despite the waste and folly of its bureaucracy, despite the slander and polarisation of its election campaigns, America's system of government is extraordinarily robust and flexible. Though everyone grumbles that politicians are out of touch, both Republicans and Democrats in fact respond swiftly to shifts in the national mood.

Going by the book A group of Chinese scientists has discovered the main biochemical pathways in drug addiction—and without having to do a single experiment. A group of Chinese scientists has discovered the main biochemical pathways in drug addiction—and without having to do a single experiment. MODERN biology has a lot of “omes”. The genome—all the genes that go to make up an organism—is a familiar idea. The proteome—all the different proteins—is becoming so. But there are also the transcriptome (RNA), the glycome (sugars), the lipidome (fats) and the metabolome (all the miscellaneous odds and ends not covered by the others). And then there is the bibliome—all the mentions in research papers of known biomolecules. There are now so many of these papers, and the databases linking them are so good, that it is possible to use scientific methods to investigate the bibliome in its own right, just as any of the other, wetter “omes” may be investigated. Which is exactly what a group of researchers from Peking University, led by Wei Liping, have done to get at the biochemical heart of drug addiction. Dr Wei and her colleagues wanted to answer three questions. First, what are the genes and biochemical pathways in addiction? Second, does addiction to different substances involve the same core biochemical mechanisms? Third, does anything in those mechanisms explain why addiction is so hard to shake off? Many people, of course, have asked these questions before, and partial answers have emerged. What Dr Wei hoped to do was to take these fragmentary answers and patch them together to make something approaching the whole truth. And, in a paper just published in the Public Library of Science, she seems to have managed just that.

The Quest for Supergenes Craig Venter and rival genetic engineers are shaking up science--and venture investing--with plans for man-made organisms designed to pump out fuel and clean up waste. Designer organisms, and the potential to profit from them, are sparking excitement--and debate--among scientists and venture capital investors. Researchers in an emerging field called synthetic biology envision microbes customized with artificial genes to enable them to turn sunlight into fuel, clean up industrial waste or monitor patients for the first signs of disease. Already, scientists are producing strings of man-made DNA, short for deoxyribonucleic acid, which directs the functions of all living cells. Then they splice the manufactured DNA into the genes of existing organisms, reprogramming bacteria to act like microscopic factories churning out biofuels. Venter's experiments are taking synthetic biology a step further by working to build new organisms from the ground up with wholly artificial genes.

A Battlefield Goes Quiet It is strange to think that Europe, after so many centuries of war, is now cast in the role of sweet Venus across from America's bellicose Mars. The gradual demilitarization of European society since 1945 has amounted to an almost invisible revolution. War has obviously had a long history in Europe, but militarism originated only in the 1790s as an outgrowth of the French Revolution and Napoleon Bonaparte's regime. With Napoleon's defeat in 1815, armies naturally demobilized and, for a time, war became again a tool for statesmen, conducted within traditional limits. But attitudes toward war had changed in Europe by the 1870s, along with the size of armies and their connection with the wider society. In the decades before World War I, war became more than a political tool to be wielded with caution. It became a force that conferred meaning. International politics became a ruthlessly competitive game in which defeat could bring downfall. Conflicts easily escalated into crises. The contrast between Mars and Venus after 9/11 -- in which popular European sentiment resisted America's policy toward Iraq -- may be too simple. The militarism that Mr. Sheehan describes -- no less than the civilian state that succeeded it -- was a response to the ambitions and concerns of a particular time. The challenge is very different now. Instead of withdrawing into a pacifist idyll, as its critics claim, Europe is in the process of refitting its armed forces for tasks that mass armies cannot perform. Just how it will respond at the next time of crisis is uncertain. But it is clear that the greatest threat to peace arises no longer from the nations within Europe but from the barbarians without.

The Wine Antisnob A wine adviser to hotels and restaurants from Ruth's Chris to P.F. Chang's, Mr. Hanni, 55, is on a mission to combat snobbery in the wine industry -- and get more Americans to drink wine. Unlike many wine experts, he doesn't rely on the sophistication and sensitivity of his own palate, although he was one of the first two Americans to hold the highest credential in the field, Master of Wine. He argues that no one has a palate superior to anyone else's, and that there's nothing wrong with liking wines many experts consider tacky, like White Zinfandel. He also thinks traditional tasting notes comparing wine to berries or chocolate are useless in helping most consumers find wines they enjoy. Instead, he has developed new systems that help customers choose wines based on factors like how they take their coffee and cocktails -- and how many taste buds they have. Try the Budometer: a questionnaire designed to determine what kinds of wines a person will like.

The Climax of Beethoven's Career Beethoven's last symphony seemed to sum up everything the composer had learned and lived. A critic of his day described the music as filled with "never-imagined magical secrets." The piece has everything: Universes seem to collide; intricate textures give way to wild rhythmic contractions -- the birth pangs of a new musical art. There are long, exquisite stretches of heavenly repose, passages of punctilious counterpoint, and moments of earthy humor. There is even a Turkish band thrown in for good measure. And in the end, Beethoven delivers Schiller's ardent plea for universal brotherhood. The conception is as modern and relevant today as it was nearly 200 years ago. Little wonder this was the work Leonard Bernstein chose to perform in the former East Berlin Schauspielhaus on Christmas Day, 1989, to celebrate the fall of the Berlin Wall, substituting the word "Freiheit" (freedom) for Schiller's "Freude" (joy). And yet, this music is not especially easy to comprehend. Composer Hector Berlioz admitted that in some ways it remained unfathomable to him. Nevertheless, he asserted, if in composing it Beethoven broke some musical laws, as some contended, "So much the worse for the law!" These were new forms, new visions of what music could do and say. The composer had begun early in his career to construct his compositions out of small musical cells, which grew organically, as if governed by a kind of musical DNA. Now, toward the end of his life, he shattered the model, allowing elements of his structures to break free and move in unorthodox ways, blurring distinctions between endings and beginnings, forming strange convergences and unconventional resolutions. The music unfolds as a psychological drama in which themes are declared, wrestle with each other and, in the final movement, strive to re-emerge -- only to become subsumed in the flame of heavenly bliss.

 

Pump Priming, Rates Cuts and Crameritis: More on Economic Outlook

Well the Economy has indeed moved into the #1 slot on the political agenda. Tu. the Fed announced a major rate cut while Th. the White House and Congress announced a major stimulus package. Both of which, on balance, should be helpful. At least it mitigating the damage that's likely though not avoiding it all together. And, much more importantly, reducing (at least hopefully), the enormous downside risks we're exposed to because of the fault lines in the economy that have been created and are under increasing pressure.

We'd like to point you to a summary and analysis of the recent news as well as some relevent readings. Which entails admitting that we lead a duel existence (and you thought the we was mere editorial posturing :) ). This blog is focused on Current Affairs while my other one is focused on Economics, Markets and Business. The most recent post there goes over what's becoming an increasingly vital issue that WILL haunt us all for some time to come. As we've argued before. So, without much further ado, here's an excerpt and link. Which has a nice selection of readings from a range of good resources. Hopefully you'll find it worthwhile.

Cramer's Comeuppance vs Pump Priming Realities Well some more interesting news hot off the press, so-to-speak. One both amusing and  schadenfreudish but also informative. And the other a matter of both public policy and another reality check. The latter is the recent announcement that House leadership and the White House have reached an agreement to pass an economic stimulus package that's actually fairly sensible as well as astounding for its' speed. Though it still has to make it thru the Senate where further wrangling is all to likely. The former is Jim Cramer being called out by Rick Santelli on CNBC for now trying to sound like a Bear when in fact he was not only bullish for most of last year but stayed bullish weigh into the year. Some more readings are below. In one of them Larry Summers lays out the primary criteria for a tax stimulus: 1) quick, 2) targeted with the right instruments and 3) temporary. Another reading is a Brookings survey that takes a deeper dive but is nearly identical. So on that basis what do we think. Well... 

We also recommend reviewing the prior post on economics related readings: WRFest 20Jan08(Economics): Oops...Recession Ahead

January 22, 2008

WRFest 20Jan08(Int'l Affairs):

Now that we've earlier carved out seperate postings on the accelerating role that economic issues are beginning to play and the reasons behind the increased level of success in Iraq (the latter in particular representing a collection of readings over the last year) let's shift our focii to the broader arena of general world affairs. The readings below highlight other continued shifts. In particular the growth of foreign investment funds and the increased sophistications of both India and China. In case you haven't notice both are not only doing their levels bests to migrate their vast populations into the modern world. At the same time they're making every effort to migrate up the value-chain ladder and increase the sophistication of their economies.

In the meantime we continue to face challenges from Russia as two very contrasting articles excerpted below make clear. The first takes Putin to task for social indicator failures. While an interesting article IMHO it fails to view things as the Russians see them. More accurate is the second, contrasting article which highlights the successes Putin has created against all odds. And the challenges Russia faces for the future as it too attempts to re-factor its' economy, politics and society. Challenges all the emerging powers will face in the next two decades. On our part the challenge is to view these countries in their own terms, as they are and not continue to insist on applying our own domestic and distorted perspectives. Fact chance but a perspective we'll continue to take of course.

There are other interesting articles but the fun and scary one is a computer war game which explores the consequences of the peak oil problem and what happens to the world system. Sounds like a fun game, well-grounded in possibilities and a good exploration of future miltech; but also a  better than zero-chance scenario. Think about it. 

In a similar vein there's an excerpt from the ruler of Dubai as well as articles on Iraq and Iran. 

Int’l Affairs

The end of oil At some point in the near future, worldwide oil production will peak, then decline rapidly, causing depression-like conditions or even the starvation of billions across the globe. That's the worst-case scenario for subscribers to the "peak oil" theory, who generally believe oil production has either topped out or will do so in the next couple of years. What follows depends on who one talks to, but predictions run the gamut from the disaster scenario described above to merely oil prices in the $200-a-barrel range while society transitions to other energy sources. It's not a view held by most industry experts, including the oil companies, the government and most analysts at the financial houses. Most peak-oil proponents simply don't believe the numbers put forward by industry and the government. The world will produce 118 million barrels of oil a day, up from its current 85 million barrels per day, just to satisfy projected demand by 2030, according to the Energy Information Agency. "That's never going to happen," said Richard Heinberg, a research fellow at the Post Carbon Institute and author of three books on peak oil. Instead of production ramping up to 118 million barrels per day, Heinberg sees a plateau over the next few years, then gradual declines beginning in 2010. By 2015, he says the rate of decline will accelerate as field after field runs dry and few new supplies are found. By 2030, the world could be looking at powering its economy on 30 million barrels a day.

·         The end of oil is just a game Over the last two decades prior to 2030 oil production has peaked and is declining rapidly, renewables never panned out, plagues hit, and starvation ensued. In other words, things have been very bad, at least according to Kaos Studios, the maker of this video game you're playing. While Frontlines: Fuel of War is one of the first video games to capitalize on the doom-and-gloom scenario of what might happen when the world runs out of oil, it's not the only video game focusing on energy as oil prices rise, developing nations use more and more crude, and the world grapples with global warming fears.

China + Citigroup + Alwaleed = Brave New World On the surface, all this back-scratching makes sense. Asian and Gulf governments, with their currency reserves and oil wealth, face a kind of embarrassment of riches and are open to buying into Wall Street at fire-sale prices. In the West, subprime mortgage losses have drained the capital Citigroup and others keep as a cushion against bad loans. Yet such transactions of convenience are joining together three of the world's biggest bubbles: China's economy, oil prices and Wall Street's hubris. The Chinese bubble that gets the most attention is stocks. The CSI 300 Index climbed 162 percent last year, even as officials took steps to calm the market. In 2007, the names of three Chinese banks and the word ``stocks'' beat ``sex'' to become four of the most Googled words in China. Another bubble is a stockpile of currency reserves that is approaching the equivalent of Brazil's annual gross domestic product. Economists are wondering about bubble troubles elsewhere. Officials are so worried about inflation that they're freezing price increases of oil products, natural gas and electricity. Whether serendipitous or by design, the connecting of these three bubbles raises the stakes for the global financial system. Here's but one example: If China overheats or its stocks plunge, Wall Street shares could take a hit as investors bet on an end to bailouts from China Inc. Or if Wall Street's hubris resulted in even more bad loans, China's stocks could take a hit as investors mull the fallout for Asia's No. 2 economy. The intermingling of a Wall Street on the ropes, a China on the verge of overheating and obscene oil wealth is creating a brave new world of finance.

China Should Be Afraid of India's New $2,500 Car: Missed in all the incredulity is that Tata's new vehicle is an engineering marvel that speaks volumes about India's economy. China's too. Yet the Nano is an example of the reverse technology needed to reach the market that Paul Collier wrote about in his book ``The Bottom Billion.'' Tata Chairman Ratan Tata is reminding the world that there's great potential in expanding markets to low- income consumers who don't much interest the West. What's more, Tata's feat is a reminder that India's economy is far more than just service centers and information-technology companies. India boasts an engineering prowess that may continue to confound naysayers, create well-paid jobs and accelerate the growth of the middle class.

Notable & Quotable Michael McFaul and Kathryn Stoner-Weiss on Putin's failure to bring order to Russia.Many of Putin's defenders . . . contend that Russia's democratic retreat has enhanced the state's ability to provide for its citizens. The myth of Putinism is that Russians are safer, more secure, and generally living better than in the 1990s -- and that Putin himself deserves the credit. . . . [But] in terms of public safety, health, corruption, and the security of property rights, Russians are actually worse off today than they were a decade ago. The murder rate has . . . increased under Putin, according to data from Russia's Federal State Statistics Service. In the "anarchic" years of 1995-99, the average annual number of murders was 30,200; in the "orderly" years of 2000-2004, the number was 32,200. The death rate from fires is around 40 a day in Russia, roughly 10 times the average rate in western Europe. Nor has public health improved in the last eight years. Despite all the money in the Kremlin's coffers, health spending averaged 6% of GDP from 2000 to 2005, compared with 6.4% from 1996 to 1999. Russia's population has been shrinking since 1990, thanks to decreasing fertility and increasing mortality rates, but the decline has worsened since 1998. Noncommunicable diseases have become the leading cause of death (cardiovascular disease accounts for 52% of deaths, three times the figure for the United States), and alcoholism now accounts for 18% of deaths for men between the ages of 25 and 54. At the end of the 1990s, annual alcohol consumption per adult was 10.7 liters (compared with 8.6 liters in the United States and 9.7 in the United Kingdom); in 2004, this figure had increased to 14.5 liters. . . . Life expectancy in Russia rose between 1995 and 1998. Since 1999, however, it has declined to 59 years for Russian men and 72 for Russian women. At the same time that Russian society has become less secure and less healthy under Putin, Russia's international rankings for economic competitiveness, business friendliness, and transparency and corruption all have fallen. . . .

A Modernizing Czar Vladimir Putin can take great satisfaction with the legacy he will leave his successor this spring. In 2007, he achieved the goal he set out for himself eight years ago in a document, "Russia at the Turn of the Millennium," just before he took the presidency from ailing Boris Yeltsin: To rebuild Russia at home so that it could regain its status as a great power abroad. Under President Yeltsin, Russia suffered a socio-economic and political collapse unprecedented for a major power not defeated in a major war. Between 1990-1998, the economy plunged by 40%. The state was dysfunctional, with significant parts privatized by corrupt oligarchs and with regional barons asserting their independence. Russia was humiliated as its finances were run out of Washington by the International Monetary Fund, and outside powers shamelessly interfered in Russia's domestic affairs in support of Yeltsin. Eight years later, the difference is stark. Mr. Putin has restored Russian pride and enhanced Russia's power. The economy has not only recovered all the ground it lost in the 1990s, but has also developed a robust service sector that was practically non-existent in the Soviet period. The time of restoration has now passed, however, and 2008 brings a new, more formidable challenge -- modernization -- that will require new approaches, particularly with the West. Russia needs to make massive investments -- perhaps a trillion dollars over the next decade -- to modernize infrastructure largely inherited from the Soviet Union and starved of funds over the past 15 years.

Our Ambitions for the Middle East  Dubai hopes to show young Arabs around the region that there are alternatives to extremism. We live in a tough neighborhood. We live in a country that has been surrounded by difficult issues for several decades -- the Iraq-Iran war, the invasion of Kuwait, the current war in Iraq. Despite all that, Dubai has learned how to reinvent itself and cope. We believe that helping to build a strong regional economy is our best opportunity for lasting social stability in the Middle East. That's why, for instance, we strongly support the new Gulf Common Market, which was launched on Jan. 1 and which will eventually lead to more regional economic integration, enhanced intra-Gulf trade, and a common currency for the six countries that form the Gulf Cooperation Council -- Bahrain, Kuwait, Oman, Qatar, Saudi Arabia and the United Arab Emirates (UAE). When you look at the region, there are parts that are behind compared to the rest of the world -- behind when it comes to the economy, business and social development. We would like these less-developed parts of the region to be like Europe, Japan, Singapore and the rest of the industrialized world. Nearly 1.5 billion people live in our neighborhood, and more than 50% of them are under the age of 25. In the Arab world alone, some 80 million young people -- out of a total population of 300 million -- are seeking jobs. I look at these young people as extraordinary resources for nation-building. If we can take our vision beyond Dubai, I think we can save a lot of young people from humiliating unemployment, from becoming extremists. Education and entrepreneurship are the twin underpinnings for building a safer world. With these two institutions, we'll have fewer angry young people, fewer frustrated youths ready to embrace radicalism because they have nowhere else to turn.

The Lessons of Iraq After a costly learning process, the military increasingly "gets it" when it comes to irregular warfare. The Army and Marine Corps published a new counterinsurgency manual that legitimized the radically different strategy that the Iraq War required. Pre-deployment training now includes realistic scenarios that test units' ability to build relationships with local leaders and partner with host-nation forces. Commanders, from the small-unit level to the general ranks, increasingly understand that population security, political reconciliation and economic development create legitimate government, which saps insurgents' strength. As a result, conventional forces are now performing counterinsurgency missions at a level that many experts thought impossible. It remains to be seen whether the new counterinsurgency strategy will lead to a peaceful, democratic Iraq. Success ultimately depends on the ability of Sunnis and Shiites to overcome decades of mistrust and antagonism. But the current approach has created an opportunity for political reconciliation, as Sunnis have demonstrated that they reject al Qaeda's campaign of terror against Shiites. The new strategy is also helping to prevent the establishment of an al-Qaeda safe haven in Iraq -- and in this sense, it has already proven its worth.

Iraqi Lawmakers Pass Legislation To Reinstate Baath Party Members  Iraq's Parliament voted Saturday to give jobs back to thousands of former supporters of Saddam Hussein's Baath party who were fired after the U.S. invasion in 2003. The long-delayed bill is the first of several major changes in Iraqi law sought by the Bush administration with the goal of easing ethnic and religious tensions. The 275-seat parliament is still deadlocked over how to share the country's oil profits, constitutional amendments demanded by minority Sunni Arabs, and a bill spelling out rules for local elections. The bill, approved Saturday by a unanimous show of hands, seeks to relax restrictions on the rights of members of the now-dissolved Baath party to fill government posts. It is also designed to reinstate thousands of Baathists dismissed from government jobs after the U.S.-led invasion -- a decision that deepened sectarian tensions between Iraq's majority Shiites and the once-dominant Sunni Arabs, who believed the firings targeted their community. The strict implementation of so-called de-Baathification rules also meant that many senior bureaucrats who knew how to run ministries, university departments and state companies ended up unemployed in a country where 35 years of Baath party rule and extensive government involvement in the economy had left tens of thousands of party members in key positions. That, coupled with the disbanding of the Iraqi army, threw tens of thousands of people out of work at a critical time in Iraq's history and fueled the burgeoning Sunni insurgency.

Bush Gets Iran-Sanction Help From UBS, Deutsche Bank That Eludes Him at UN President George W. Bush is getting from UBS AG and Deutsche Bank AG what is eluding him at the United Nations: effective pressure on Iran to curb its nuclear ambitions. U.S. officials are telling bankers around the globe that Iran is funding terrorists and seeking the know-how to build a nuclear bomb. And the banks, fearful of an implied threat of being cut out of the U.S. market, are restricting loans to Iran, making it harder for industries from oil to steel to buy modern machinery. In the past two years, the number of banks doing business with Iran has plummeted. The institutions used by Bank Saderat, one of Iran's biggest, to conduct international transactions has dropped to 8 from 29 in 2006, according to Bankers' Almanac. Six months ago, member countries of the Paris-based Organization for Economic Co-Operation and Development cut Iran's country-risk rating for export credits by a notch to the second-worst level. That put Iran, the Middle East's second- largest oil producer, in the same category as Albania, Bangladesh and Mozambique.

January 21, 2008

WRFest 20Jan08(Economics): Oops...Recession Ahead

Economics and economic policy is one of those things that most people ignore, take for granted and find making their heads hurt. Unfortunately, for good or ill, it conditions most of the rest of what we can do. Just in case you were living in another world, or paying attention to purely "practical" things last week not only did the major US markets continue tanking but the escalating chorus of cries for some sort of combined monetary and fiscal stimulus effort to short-circuit an increasingly likely US recession were capstoned by Ben Bernanke's Congressional testimony and Pres. Bush's call for a $150B fiscal stimulus program. Please understand that these efforts are necessary and vital but are unlikely to prevent a recession that's likely already underway. The real goal here is to a) mitigate the damage and b) prevent it from metastasizing into something much worse given the weaknesses in credit markets and the housing sector. And also c) to keep worldwide problems from feeding back to severely, as it increasingly turns out that the rest of the world is not in fact decoupled from the US.

At this point you may be going, oh my god...he's off on economics. Please don't or why do I care ? Several of the excerpts below will speak directly to that question of course. And it's an interesting one - for several years now it seems a conversation I"ve been having with several friends, all of whom would rather not think about it, by and large. Part of the problem is that everyone confuses economics with business or finance, which are significant parts but not the subject as a whole. Economics on a small scale is about finding the best use of available resources to get the most done with those resources. On a large, or macro-, scale it's about the complexities of making sure that the most people have the most jobs and overall welfare and well-being is moving ahead as well as possible. Put another way all the other things we think we need to do from protect our national interests to reform education to changing healthcare to paying for pensions involve economics, on several levels. First off designing workable programs and paying for them is often 90% a problem in micro-economics. But second off without a healthy macro-economy we end up being unable to pursue any of these other initiatives.

There's a Latin tag phrase somebody explained to me once - sine qua non. That without which there is no other. Economics is the sine qua non of a healthy society.

When Antwerp fell to the besieging Spanish army in the 16thC and was sacked because the siege had been long & ugly and the bankrupt Spanish monarchy hadn't paid the troops in months it destroyed a major port and trading center that had risen to prominence as the major economic and financial powerhouse of Europe. Its' destruction during the Dutch-Spanish 80 Years War lead to the rise of Amsterdam as its' replacement and the eventual independence of the Dutch and their leading role on the world-stage for two centuries as a major trading, economic and politico-military power. After months of successfully defending themselves do you know what one of the primary triggers was ? The city fathers put price controls on smuggled food and smugglers would no longer take the risks to bring in the supplies that had been keeping the city alive. After a few months the starving city was so weakened it fell to the Spanish troops.

Be careful what you wish, understand that often supposed unintended consequences are the results not of ignorance but of either not thinking things thru to the next step. Or of believing what we'd like to believe in the face of all evidence to the contrary.

Speaking of which at least skim these readings and ask yourself a) how bad you think this problem might be, b) what you think of which candidates proposals and c) whether you're willing to let them "play politics" for partisan advantage for what could be a major problem shortly ? And for the next several years. Several of the excerpts are well worth at least skimming if not going to and reading but the three that are sort of the minimal set are one on the consequences for future generations (Change for our Children), the economic sense and sensibilities of the candidates (What Are They Thinking) and an introduction to some sound thinking on fiscal policy (which admittedly is a little more rigorous but...)

General

Fallout from the global credit crunch has darkened the outlook for the U.S. and global economies since the World Economic Forum last met in Davos. The turnaround promises to create a whole new A-list of stars this year. When the elite of global business gather in Davos, Switzerland, for their annual retreat next week, the mood will be dramatically darker than just a year ago. Since the World Economic Forum last met in Davos, fallout from the global credit crunch has transformed the outlook for the U.S. and global economies for the worse. Power and wealth have shifted from West to East, from major oil companies to petro-governments, and from U.S. banks and hedge funds to the state-controlled investment funds of the Middle East and Asia. The turnaround promises to create a whole new A-list of stars this year in Davos, including once obscure sovereign-wealth-fund managers, formerly boring central bankers and previously ignored bearish economists. "There is a sea change going through business," said Nigel Doughty, chairman of British private-equity firm Doughty Hanson & Co. and a Davos veteran. "The whole landscape has changed, not least because of the decline in influence of Western nation states." Few saw it coming. When Citigroup Inc.'s then chief executive officer, Charles Prince, predicted a "benign" year for the global economy and financial markets last January in Davos, he was in good company. U.S. and European bankers, industry chiefs and political leaders bubbled with confidence as they clinked glasses in the tony ski resort.

Prepare for a global economic downturn Any assessment of the world economy in 2008 depends on the likelihood, depth and length of a US economic downturn and the magnitude of a global spillover. Any forecast is thus contingent on how we answer the following three questions. Will the financial crisis continue in 2008? Will inflation expectations rise further? Last, will there be a disorderly process of global rebalancing? If we answer all three questions with Yes, we should prepare for a global depression. If the answer is No, the world economy will have another good year. There are many intermediate scenarios as well. I would answer the first question with an unqualified Yes. The financial crisis will probably linger on for most of the year and may get worse before it gets better. The macroeconomic effects of a financial and banking crisis of such scale are not trivial. Economic forecasters frequently underestimate the importance of credit and financial channels. What saved the US economy during the 2001 recession was a booming housing market and the availability of cheap consumer credit. This time many of those mechanisms work in reverse. The third risk is a disorderly unwinding of global imbalances, in particular a collapse in the exchange rate of the dollar against the euro and the yen. That could occur if central banks in Asia, Russia and the Middle East were to shift reserve assets out of dollars on a large scale. On this score, I am more optimistic. What about the rest of the world? Can it decouple? The answer is No. Both Asia and Europe should expect to see a significant reduction in economic growth, too. Asia will be mainly affected through the trade channel, given its reliance on the US as consumer of last resort. The biggest crisis transmission mechanism to Europe is the financial market. But Asia and Europe are in a relatively strong position to avoid recessions. Asia’s economic health will rest crucially on continued financial stability. The biggest current risk to China, for example, would be an implosion of overvalued stock prices. In the eurozone, there are already signs of an economic downturn, but fiscal policy could prove to be an important counter-cyclical stabiliser this time.

What Are They Thinking?  In the past week, I have been in the car coming home late from work, with the presidential debates are on the radio. It is very discouraging to listen to what passes for economic literacy among the candidates. In reality, many candidates are espousing policies that are quite dangerous at worst, or simply misleading at best. Far too many in both parties tell a frustrated America what it wants to hear, rather than the economic reality. The Republicans have some of the worst offenders. So, today we will look at some economic reality. We tackle trade deficits, the dollar, taxes (the "Fair Tax"), how should we stimulate the economy as we slip into recession, and global trade. I think we will cover enough that I can just about guarantee to offend most of my readers at some point. But the main point I want you to take away from all this is that the simple one-line answers given at these debates might work to fool most of the voters and tell them what they want to hear, but they are not based in economic reality. While this is of more interest to US citizens, the principles apply across borders. So, let's jump right in.

 

A Primer on Fiscal Stimulus Although monetary policy should generally be the first line of defense against an economic slowdown, there are several circumstances in which fiscal stimulus can be helpful or even crucial. Two of these circumstances are potentially relevant today: one is if a sharp economic downturn appears imminent, and well-designed tax or spending changes could be implemented quickly; such fiscal stimulus could boost economic activity more quickly than monetary stimulus. The other circumstance is if, allowing for uncertainty about the effects of fiscal and monetary stimulus, a mixture of the two provides greater confidence about the economic outcome. However, it would be better not to have a fiscal stimulus at all than to have tax cuts or spending increases that are poorly timed, badly targeted, or permanently increase the budget deficit. A purported stimulus package with these characteristics could have small or non-existent short-run benefits and a substantial long-run cost.

Politics, Policy and Economics 

'Change' For Our Children  Our children face a future of rising taxes, squeezed -- and perhaps falling -- public services, and aging -- perhaps deteriorating -- public infrastructure (roads, sewers, transit systems). Today's young workers and children are about to be engulfed by a massive income transfer from young to old that will perversely make it harder for them to afford their own children. No major candidate of either party proposes to do much about this, even though the facts are well-known. Spending for Social Security, Medicare and Medicaid -- three programs that go overwhelmingly to older Americans -- already represents more than 40 percent of federal spending. A new report from the Congressional Budget Office projects these programs could equal about 70 percent of the present budget by 2030. Without implausibly large budget deficits, the only way to preserve most other government programs would be huge tax increases (about 40 percent from today's levels). Avoiding the tax increases would require draconian cuts in other programs (about 60 percent). Workers and young families, not retirees, would bear the brunt of either higher taxes or degraded public services. Similar pressures, though less ferocious, exist at the state and local levels. Schools, police, libraries and parks will be squeezed by the need to pay benefits for retired government workers.

Economic anxieties for the middle-class Republican candidates could be in big trouble in 2008 if the sluggish U.S. economy doesn't turn around quickly as worries about jobs, housing, and energy prices are overtaking war concerns. Presidential elections often become a referendum on the economy, with the party of the White House incumbent assigned the credit or the blame for whatever happens in the economy. The official stats may say the economy grew at a 4.9% rate in the third quarter, but what's more important to voters is what will happen over the next 11 months. Most economists are forecasting much slower growth, perhaps just 1% in the current quarter. The odds of a recession next year have grown to more than 40%, according to some big Wall Street firms. Even the White House, which is much more optimistic than private forecasters, is projecting only average growth in 2008. A bigger problem for the Republicans is that voters aren't hopeful about the economy, and weren't even during the best days of expansion in 2004 and 2005.

 Where's leadership on economic issues? The best presidents know when to lead and when to follow.  The current crop of candidates isn't doing either when it comes to the biggest issues facing the economy: health care and energy.  The campaign stop in Michigan this week was tailor-made for one candidate to break away from the pack by showing a willingness to follow the public's lead on health care while providing some real leadership on energy. But it didn't happen.  Michigan's economy has been devastated by the transformation of motor vehicle manufacturing. Once Detroit was the center of that world, with the best designers, engineers and production workers. But now, the Big Three auto companies are only a shadow of their former greatness. What's happened to Michigan? The same thing that's hurting companies and consumers all over America: Exploding costs for health care and energy. Fixing those problems would go a long way toward fixing Michigan, and the rest of the U.S. economy as well. Fixing those problems requires a flexible approach and an awareness that the problem with health care is that it's too expensive, while the problem with energy is that it's too cheap.

A Revival of 1992’s Glum Mood The details of the economic slump have changed since the ’92 presidential race, but the main story line remains much the same. The economic worries of 1992 helped elect Mr. Clinton, of course. And by the end of the decade, thanks to both his policies and a huge stock market bubble, the American economy was roaring along again. The deep anxiety of 1992 seemed to be a piece of economic history.  No more. Almost 16 years after Mr. Clinton’s speech at Wharton, the economy is again dominating a presidential race. While the details have changed, the main story line remains remarkably similar. A downturn has reawakened fears that the economy no longer works very well for the middle class. Today, as was the case 16 years ago, the downturn itself isn’t the main problem. By 1992, as a matter of fact, the economy was already growing again. This year, it’s still possible — if less likely after Tuesday’s dismal retail sales report and another sharp decline in stock prices — that the country will avoid a full-blown recession. The main problem now is that the good times are no longer good enough to carry the middle class through the bad times. For much of the last 35 years, the incomes of most workers have been growing far more slowly than they once did. In the current expansion, which started in 2001, the median weekly paycheck of workers has actually fallen 1 percent, once inflation is taken into account, according to the Labor Department. Economists argue about the reasons for the great wage slowdown — technology, globalization, health care costs, the decline of unions, the rise of the new wealthy — but it clearly seems to have made people feel more vulnerable to small economic swings. In the latest New York Times/CBS News poll, only 19 percent of those responding said the country was headed in the right direction. That was the lowest percentage since the early 1990s.

Economic handouts we don't need Everyone from the Bush administration and the presidential candidates to your barber has a plan to ward off a recession -- and they're mostly lousy ideas that'll waste our tax money. If you believe in the tooth fairy, the Democratic candidates' proposals are the most compelling. Sen. Hillary Clinton has offered a $70 billion stimulus plan that includes low-income fuel assistance, extended unemployment benefits and outright grants to local governments for things such as health care and street repair, as well as a $40 billion tax cut contingent on certain negative events occurring, such as continued job market contraction. Meanwhile, the Republican candidates have mostly focused on toeing the administration line, with Rudy Giuliani, for one, pushing permanent tax cuts for individuals and corporations. A pair of economists have written a great paper for the Brookings Institution that lays out an analytical framework for understanding what has worked in the past, and though that institution has served as a think tank for Democrats and will therefore be dismissed out of hand by the GOP, I hope all sides will take the paper's findings to heart. The paper by Douglas W. Elmendorf and Jason Furman says effective stimulus must be timely, targeted and temporary, and that a combination of tax rebates and direct government spending on anything but infrastructure (because it takes too long) has the most immediate boost to the economy. The paper says the most popular Republican ideas, such as cuts in marginal tax rates and investment incentives, take effect too slowly.

 

Bush Calls for Major Stimulus Bush unveiled a stimulus plan of tax cuts and rebates that could reach $150 billion, aimed at boosting business and consumer spending. Democrats argue that the plan doesn't address the problems of homeowners and low-income people hit by high oil prices.

January 16, 2008

Readings(MilDoctrine & Foreign Policy): Learning to Eat Soup With a Knife

UPDATE (Jan17): On reviewing this post it dawned on that we just leaped into the topic without, likely, motivating it. Or less politely put - why do you care ? Two reasons and both important for the future and the well-being of your grandchildren. 1) Success in Iraq REQUIRES this adaptation to cultural realities and its' growth and evolution to a broader sense of Unified Action on our part and collaborative nation-building with the Iraqis. And 2) this is a template for challenges we're going to be facing for decades into the future. Consider Pakistan and Afghanistan let alone Latin America, especially the bubbling cauldron of Calderon's war against the druggies which could explode into a socio-political breakdown at any time. In many cases we can't/won't intervene but the concept of understanding how foreign cultures work and what local ground truths are and HOW to WORK with them as they are rather than how we fantasize them will be central to US Foreign Policy. Hopefully that's a sufficient answer for why you care ! ;) 

Now back to our previously scheduled blogpost. 

Learning to Eat Soup With a Knife is, within the community of counter-insurgency operators, a pretty well-known little book. But as it happens outside that charmed community hardly known at all. When you ask what's happened in Iraq this past year there are several keys, which are traced out in the chronological readings below.


Principles

1. Senior Leadership had the will, courage and insight to fundamentally re-think doctrine. This is more difficult than you know. If you want to put it into perspective read the essays by Jim Stockdale on public leadership and Vietname where senior leadership not only failed to adapt but years after they (McNamara in particular - so much for his apologia) had failed to change direction they were still sending troops to die for a failed strategy and operational concepts.

2. Flexability, adaptability and smarts of the military itself.

3. Re-discovery of the doctrines and lessons of COIN that were developed in the 50s, 60s and 70s but kept alive only into recent times by the Special Operations community. A sad but true fact is that post-Vietnam the senior leadership re-focused on fighting the Russians coming thru the Fulda Gap with heavy armor into Germany. Not that that didn't need to be improved. But it's too bad we had to relearn what we'd already paid such a price for.

4. Commitment to and resourcing off COIN and Civil Affairs operations plus fundamental shifts in strategy. None of this works without people, skills, money and other resources. But the biggest prerequisite shift is the change in mental  frameworks that allow people to see new paths forward and then commit to them. We went into Iraq thinking first that it would be a quick regime change. Then we discovered that the Baath and Saadam had so destroyed the society there were no institutions or leadership capable of picking up the pieces. And in the meantime we tried to impose our own ideological blinkers on things - the Coalition Provisional Authority for example was trying to testfly shibbolethic Republican ideologies, e.g. free markets, when the fundamentals weren't in place. And testing and selecting staff for ideological purity instead of domain knowledge and skill. Live and learn if you live long enough.

5. This may be redundant but it's critical so...a really key thing was learning that culture matters. You need to know the tribes, customs, power players and you need to approach them on their terms not on yours. 

Below you'll find an interesting set of excerpts along with links that encapsulate this evolution as well as some related excerpts. In fact the first section contains three that taken all together pretty well define the context of why we care, over and above the requirement to get it right in Iraq. There's also a pointer to some key readings.

 

Readings 

Small Wars Center of Excellence

Small Wars Journal

Transformation of War

Desert Queen: The Extraordinary Life of Gertrude Bell: Adventurer, Adviser to Kings, Ally of Lawrence of Arabia 

The Experts Expert (with links to key papers): David Kilcullen 

Key Articles on Geo-Politics (= Strategic Context)

Talkin' World War III Could we have a little talk about World War III? It's back again, that phrase, and it doesn't look like it's going to go away soon. This past month may be remembered as the one when World War III broke out. Not the thing itself, obviously, but the concept, the memory, the nightmare, which had been buried in the basement of our cultural consciousness since the end of the Cold War. The beast suddenly broke out of the basement and it's in our face again. The return of the repressed. There was George Bush's Oct. 17 warning that "if you're interested in avoiding World War III," you ought to worry about the prospect of Iranian nukes. Many found the phrase jolting, coming out of the blue. First, because it had not been in widespread use, certainly not from a White House podium, and second because "World War III" generally connotes a global nuclear war, while Bush was speaking about regional scenarios involving Iran and Israel. Why the sudden rhetorical escalation? Especially coming from the man who has the "nuclear football," the black briefcase with the Emergency War Orders, always by his side, and enough megatonnage at his disposal to threaten the existence of the entire human race. Then, a few days after Bush's Oct. 17 shocker, I came upon a less widely noticed, perhaps even more ominous quote, originally published two weeks earlier in London's usually reliable Spectator, in a story about the Sept. 6 Israeli raid on that alleged Syrian nuclear facility. A quote from a "very senior British ministerial source" contending, "[I]f people had known how close we came to world war three that day there'd have been mass panic." Here, it wasn't Bush theorizing about the future; it was a responsible official saying we'd already come close to Armageddon.

Goodwill and Armed Vigilance In our broken world, the uneasy quiet that passes for peace anywhere on the planet is usually fragile, a blessed moment where goodwill and armed vigilance restrain our violent imperfections. The necessary combination of goodwill and armed vigilance is a paradox that frustrates hardened cynics and dreamy utopianists. The cynics deny the existence of goodwill. As these bitter souls see it, "goodness" is a delusion or possibly a genetically driven calculation based upon anticipated reciprocity. Bah, humbug -- it's all selfishness, pal. As for armed vigilance, the utopianists flee that responsibility. Oh, they support coercion, in order to change human nature. If the utopianists can just get the economics right, or the sex roles right, or the right people -- their people -- in power, then human nature will change and paradise on Earth obtains. But armed vigilance suggests guard duty on a permanent basis, a vision of peace that requires police. Why, that's not paradise. In the mean time the responsible make do with hopes of eventually doing better. Goodwill and armed vigilance both require sacrifice. Goodwill, as in "goodwill towards all men," strikes me as radical generosity offered without the expectation of reciprocity. That's sacrificial good, where rewards are uncertain or -- good heavens -- spiritual. The sacrifice armed vigilance requires also has a spiritual facet: necessary commitment. Anyone who has ever worn a uniform and spent the Christmas holidays guarding the motor pool, flying a mission or dodging bullets understands the commitment.

Why We're in the Gulf Without a Pax Americana, the world would be neither safe nor happy. Few subjects matter as much as oil, the Persian Gulf and American foreign policy. But few subjects are less well understood. Even relatively sophisticated observers will attribute American interest in the Persian Gulf to Uncle Sam's insatiable thirst for crude, combined with an effort to gain lucrative contracts for American oil firms. The U.S. today depends on the Middle East for only a small portion of its energy supplies. Still the world's third largest oil producer and holding large coal reserves, America is significantly less dependent on foreign energy sources than the other great economies. While U.S. import needs are projected to grow significantly, U.S. dependence on Persian Gulf energy is not, thanks largely to expected production increases in the Western Hemisphere and sub-Saharan Africa. U.S. energy imports from the Persian Gulf are expected to remain below 20% of total consumption. For the past few centuries, a global economic and political system has been slowly taking shape under first British and then American leadership. As a vital element of that system, the leading global power -- with help from allies and other parties -- maintains the security of world trade over the seas and air while also ensuring that international economic transactions take place in an orderly way. Thanks to the American umbrella, Germany, Japan, China, Korea and India do not need to maintain the military strength to project forces into the Middle East to defend their access to energy. For this system to work, the Americans must prevent any power from dominating the Persian Gulf while retaining the ability to protect the safe passage of ships through its waters. The end of America's ability to safeguard the Gulf and the trade routes around it would be enormously damaging -- and not just to us. Defense budgets would grow dramatically in every major power center, and Middle Eastern politics would be further destabilized, as every country sought political influence in Middle Eastern countries to ensure access to oil in the resulting free for all. The potential for conflict and chaos is real.

Readings and Excerpts on Re-Developing Doctrine

Letting Soldiers Do the Thinking  Today's officers lead an Army that was sent into Iraq in 2003, and by 2004 the operation became, as an officer here says, "a deployment in search of a mission." Since then, missions have multiplied. Today's is to make possible an exit strategy. Gen. David Petraeus's Army/Marine Corps Counterinsurgency Field Manual says counterinsurgency's primary objective is to secure the civilian population rather than destroy the enemy. This inevitably involves the military in organizing civil society, a task that demands skill sets that are scarce throughout the government and have not hitherto been, and perhaps should not be, central to military training and doctrine. Nevertheless, the War College is coming to grips with the fact that what soldiers call "nonkinetic" -- meaning nonviolent -- facets of their profession are, in Iraq, perhaps 80 percent of their profession. For soldiers, the tempo of change, technological as well as intellectual (and technological change is a driver of intellectual change), is accelerating. For centuries, nations assumed that they could be seriously threatened only by other nations; that terrorism was a weapon of the weak and therefore a weak weapon; that wars are won by large, decisive battles. Petraeus, however, says his mission is to buy time for political reconciliation to occur. The recent National Intelligence Estimate said that although the surge is producing real if uneven security improvements, progress toward political reconciliation has been negligible and might be perishable. Hence the surge is a tactical success disconnected from the strategic objective it is supposed to serve. We see in Iraq "military doctrine attempting to fill a civilian vacuum." In counterinsurgency, "nonmilitary capacity is the exit strategy," which is problematic when "more people play in Army bands than serve in the U.S. foreign service." Counterinsurgency "relies upon nonkinetic activities like providing electricity, jobs, and a functioning judicial system. . . . But U.S. civilian capacity has proved wholly inadequate in Afghanistan and Iraq." The military is "in a quandary about the limits of its role" as it is forced "to assume the roles of mayor, trash collector and public works employer."

Challenging the Generals America’s junior officers are fighting the war on the ground in Iraq, and the experience is making a number of them lose faith in their superiors. War Critiques Reveal Rifts Among Officers The controversy over Col. Yingling's essay is part of a broader debate within the military over why the Army has struggled in Iraq, what it should look like going forward, and how it should be led. It's a fight being hashed out in the form of what one Pentagon official calls "failure narratives." Some of these explanations for the military's struggles in Iraq come through official channels. Others, like Col. Yingling's, are unofficial and show up in military journals and books. The conflicting theories on Iraq reflect growing divisions within the military along generational lines, pitting young officers, exhausted by multiple Iraq tours and eager for change, against more conservative generals. Army and Air Force officers are also developing their own divergent explanations for Iraq. The Air Force narratives typically suggest the military should in the future avoid manpower-intensive guerrilla wars. Army officers counter that such fights are inevitable.

·         See Lt. Col. John Nagl's essay arguing that the army should build an advisory corps

The Military Has Yet to Truly Embrace Technology To cut spending and boost performance, the U.S. military needs to tailor its tanks, planes and ships to the latest advances in technology, rather than the other way around, writes military historian Edward N. Luttwak in the American Interest (subscription required). In the military, as in other industries, equipment increasingly is made up of electronic components. While the introduction of ever-more-powerful technology has lowered unit costs in some fields, in the military, the cost of individual items, including aircraft, warships and tanks, has risen almost across the board. Many military observers blame the higher prices on the concentration of defense manufacturing among a handful of companies. But Mr. Luttwak, a senior fellow at the Center for Strategic and International Studies in Washington, says the real cause is the military’s institutional fear of letting go of the weapons platforms it has used since World War II. Despite the growing importance of information technology and sensor equipment in warfare, the military won’t adjust its tanks and jet fighters to accommodate the new systems, he says. “We are shoving, cramming and molding such technology to fit into the nooks and crannies of 1945-era platforms.” For instance, the latest airborne radar can track multiple targets and attack electronic circuitry with highly focused beams. Mr. Luttwak says this advantage is sufficient for the U.S. to consider building bulkier and less aerodynamic planes to make room for the radar. But the military is focused primarily on attributes like speed that were crucial for planes 50 years ago but have become less important for fighting today’s battles. As a result, radar has to be miniaturized to fit into a current fighters’ small nose cones, at an impractical cost

Corporal Braveheart and the battle for Afghanistan By now, the paras had a reasonable idea of how their enemy were organised. It seemed that they operated in sub-units of about 10 men. In the course of the fighting that summer the Taliban had evolved more sophisticated tactics, firing simultaneously from several angles and using a variety of weapons. Above all, they had developed very fast reaction times. Any patrol was “dicked” [observed] immediately. If the paras stayed still for more than 10 minutes they could expect to be ambushed. To counter the threat, patrols were now often more than 40 strong. BY now they were wondering how long this could last. The Taliban were becoming more tenacious, more daring and more skilful. It was essential to unbalance the enemy by coming up with new ap-proaches. Intelligence reports suggested that the Taliban were preparing to plant improvised explosive devices (IEDs) on the paras’ well-trodden routes into town. The need to find new ones was pressing. Budd made a decision that cost him his life, but saved those of his men. What was certain was that Bryan Budd had sacrificed his life for his men in an act of selfless heroism that thoroughly merited the Victoria Cross he was awarded four months later.

To Understand Iraq, Marines Ask 'Mac' Expertise in tribal culture has given one retired Army major a key position in the U.S. effort to pacify Iraq. Though self-taught, his ideas have helped shape the Marines' strategy of forging alliances with tribal sheiks to drive out radical Islamist fighters. Tribal-affairs expert is a job that until recently didn't exist in the military -- even though Iraq has 150 tribes, and some three-quarters of Iraqis belong to a tribe. Mr. McCallister says he first saw the need in 2003 when, as an active-duty Army major, he was ushered into a meeting with an influential Fallujah sheik. The tribal leader began to warble a song about the different kinds of pain a warrior feels when he is wounded by different weapons, like a sword, a knife or a gun. "Anyone who sings about that stuff has a different take on the rules of warfare," he says he quickly concluded. "If you don't approach them correctly you can kill 30, 40 or 100 of them and they won't submit." Mr. McCallister began to search the military command in Iraq for someone who was an expert on tribal affairs. There were none. "When I suggested we find one, people looked at me like I had something growing out of my head," he says. Today, forging alliances with tribal leaders is seen as essential. Mr. McCallister insisted the tribes were essential to stability in Iraq. "Coalition attempts to bypass traditional tribal authorities and deal with the local population will fail," he wrote in a September 2003 memo to his military bosses. His ideas were ignored, he says, and he retired to be with his family. After three months home in Florida, he felt restless, unsure what to do after the military. So he returned to Iraq in 2004, working for two private contractors. He continued to study the tribes, reading books and, whenever he got the chance, quizzing sheiks about their tribal rituals, songs and laws.

Responsibility Without Power Six years on, too many Americans have only a vague understanding of what's going on with the war on terror. The main problem is the cultural differences. The Arabs, despite their oil wealth, and beneficial relations with the West, consider themselves victims of Western attacks. This is nothing new. The list of grievances goes back nearly a thousand years. Americans have a hard time believing this sort of thing, but it's taken for granted in the Middle East. American soldiers who spend a lot of time outside the wire, and among the Iraqi people, come  face-to-face with this attitude, and learn to cope. How do you deal with it? After all, the Turks, who ruled the Middle East for centuries (until 1918), had a saying, "don't involve yourself in the affairs of the Arabs." For the Turks, the ultimate technique for dealing with the Arabs was terror and brute force. It was applied as necessary over those centuries, and the Turks had very mixed feelings when the Western Allies took apart their empire 90 years ago. You deal with it by discovering that there are Arabs who understand very well how corruption, tribalism and religious fanaticism have made the Arab world an economic and political failure, and an object of fear and loathing around the world. Americans in Iraq discover that Arabs themselves are unsure what the solution is. Many see salvation in the form of migration to a more civilized culture. But many want to turn things around. There are ways to do that, but all of them take time, and a whole lot of effort. 

War and Peace With Cultural Anthropologists The NSCC and other organizations began a "mosaic" peacemaking strategy among warring southern tribes. When appropriate, the NSCC used tribal peacemaking and reconciliation rituals to coax leaders into negotiating or help amenable leaders draw antagonized members of their tribe into the peace process. The ceremonial killing of a bull before a reconciliation forum where tribesmen share bitter examples of suffering is a compelling anecdote described in the handbook. Efforts like the NSCC's helped make Sudan's 2005 Comprehensive Peace Agreement a reality. A number of southern Sudanese leaders advocate a similar approach in Darfur. The NSCC strategy is an example of using "cultural contexts" or "cultural anthropological approaches" to achieve a political goal: ending a thicket of small wars with the ultimate goal of ending a large one. It also illustrates that a savvy understanding of local cultural traditions is not a new tool in the politics of war and peace.

At an Army School for Officers, Blunt Talk About Iraq Fort Leavenworth, Kan., the intellectual center of the U.S. Army, has become a front line in the military’s soul-searching over Iraq. As the war grinds through its fifth year, Fort Leavenworth has become a front line in the military’s tension and soul-searching over Iraq. Here at the base on the bluffs above the Missouri River, once a frontier outpost that was a starting point for the Oregon Trail, rising young officers are on a different journey — an outspoken re-examination of their role in Iraq. Discussions between a New York Times reporter and dozens of young majors in five Leavenworth classrooms over two days — all unusual for their frankness in an Army that has traditionally presented a facade of solidarity to the outside world — showed a divide in opinion. Officers were split over whether Mr. Rumsfeld, the military leaders or both deserved blame for what they said were the major errors in the war: sending in a small invasion force and failing to plan properly for the occupation. But the consensus was that not even after Vietnam was the Army’s internal criticism as harsh or the second-guessing so painful, and that airing the arguments on the record, as sanctioned by Leavenworth’s senior commanders, was part of a concerted effort to force change.

After smart weapons, smart soldiers Western armies will have to adapt if they are to overcome the odds that history suggests they are up against. Modern Western armies cannot, as the Romans did, make a wasteland and call it peace. Modern wars are complex affairs conducted “among the people” and, as Sir Richard Dannatt, head of the British army, put it recently, “in the spotlight of the media and the shadow of international lawyers”. Such bewildering conflict is regarded by some military thinkers as the “fourth generation” of warfare, distinct from those of previous eras: the first generation, of line and column, which culminated with the Napoleonic wars; the second, of machinegun and artillery, which brought about the slaughter of the first world war; and the third, of manoeuvre with tanks and aircraft, which stretched from the second world war to the 2003 invasion of Iraq. Fourth-generation warfare, according to Thomas Hammes, a retired colonel in the American marines, involves loose networks, made more powerful and resilient by information technology. It does not seek to defeat the enemy's forces, but instead “directly attacks the minds of the enemy decision-makers to destroy the enemy's political will”. Such arguments are a hot topic at Western military colleges, especially in America. More has been written on counter-insurgency in the past four years than in the previous four decades. The study of small wars was largely abandoned by the United States army in the 1970s as commanders promised “no more Vietnams” and concentrated instead on how to defeat the massed Soviet armies.

U.S. Needs to Understand How Politics, Religion Mix Abroad The U.S. has been remarkably successful at balancing religion and civic life at home, but it has largely failed in its attempts to understand and address religious politics abroad, says Economist editor-in-chief John Micklethwait. Addressing that gap will be crucial to resolving some of the world’s most pressing problems, he says in a lengthy survey of religion and politics. In many parts of the world, with the notable exception of much of Western Europe, religion is playing a greater role in public life. For tradition-minded people everywhere, faith has served to soften the rapid pace of change. For the more prosperous, religion sometimes serves as a “lifestyle coach,” says Mr. Micklethwait—consider the enormous U.S. popularity of Pastor Rick Warren’s book, “The Purpose Driven Life.” Meanwhile, religious people have become more vocal in many fields, most notably business and politics. Yet despite a thriving religious pluralism at home, the U.S. government often has failed to stress religious freedom in its foreign policy. That is especially true in places like Egypt, where a secular but authoritarian government has been supported at the expense of religious parties. At the same time, the U.S. has neglected to trumpet its own Muslim community. “Playing down the role of religion in public life also means missing out on many potential solutions,” says Mr. Micklethwait. “For once religion is part of politics, it must also be part of the solution.”  Some Western policy makers were caught off guard by the revival of religion in the public sphere. Mr. Micklethwait concedes that his own publication came to recognize the shift belatedly—the Economist published an obituary of God in its millennium issue, long after it now says public faith had begun its resurgence.

In Counterinsurgency Class, Soldiers Think Like Taliban Six years into the Afghan war, the Army has decided its troops on the ground still don't understand well enough how to battle the Taliban insurgency. So since the spring, groups of 60 people have been attending intensive, five-day sessions in plywood classrooms in the corner of a U.S. base here, where they learn to think like a Taliban and counterpunch like a politician. The academy's principal message: The war that began to oust a regime has evolved into a popularity contest where insurgents and counterinsurgents vie for public support and the right to rule. The implicit critique: Many U.S. and allied soldiers still arrive in the country well-trained to kill, but not to persuade.

A Marine’s Order: Feed the Hand That Bit You Battle-scarred marines and soldiers are now doing what they couldn’t fathom less than a year ago, working beside Iraqis who may have tried to kill them. Ordered to act as mentors and honest brokers, to suppress personal feelings for the common good, the troops are surrounded by a language they don’t speak, rejiggering alliances they don’t quite fathom, while they try to rebuild a broken, politically immature nation on bedrock American values of enterprise, tolerance, hard work and optimism. Horatio Alger and Audie Murphy — those archetypal “can do” Americans — once again are hearing “the enemy of my enemy is my friend.” The Iraqis are wary, too, because they think, perhaps mistakenly, that they recognize the Americans’ behavior. Seventeen years ago, the first President Bush turned furiously against the Sunni dictator Saddam Hussein, only to abandon Iraq’s Shiites when they rose up against Mr. Hussein. Then, after toppling Mr. Hussein, marines stormed the Sunni stronghold of Falluja three years ago, subduing its rebels by decimating the city and leaving hundreds dead. Mutual distrust is what remains. Iraqis resent American power but also say they fear that the Americans will leave without making the country stable and prosperous. Hearing such contradictory attitudes is part of what bewilders the Americans, who continue to wonder if their old enemies are just playing them — snatching all the money and arms they can in preparation for a future battle. But getting Iraqis to take the lead was a challenge. That is the way things have gone in Iraq for years, and often the root of the problem can be traced to Saddam Hussein. His paranoid totalitarian rule crushed initiative, set neighbor against neighbor and injected fear into nearly every interaction. The regime’s abuses can still be seen in Sunni-Shiite antagonisms: Sunnis were favored under Mr. Hussein, and do not relish their loss of status; Shiites feel they are finally getting their due and have little interest in sharing. The divide shows up in the streets.

The Lessons of Iraq After a costly learning process, the military increasingly "gets it" when it comes to irregular warfare. The Army and Marine Corps published a new counterinsurgency manual that legitimized the radically different strategy that the Iraq War required. Pre-deployment training now includes realistic scenarios that test units' ability to build relationships with local leaders and partner with host-nation forces. Commanders, from the small-unit level to the general ranks, increasingly understand that population security, political reconciliation and economic development create legitimate government, which saps insurgents' strength. As a result, conventional forces are now performing counterinsurgency missions at a level that many experts thought impossible. It remains to be seen whether the new counterinsurgency strategy will lead to a peaceful, democratic Iraq. Success ultimately depends on the ability of Sunnis and Shiites to overcome decades of mistrust and antagonism. But the current approach has created an opportunity for political reconciliation, as Sunnis have demonstrated that they reject al Qaeda's campaign of terror against Shiites. The new strategy is also helping to prevent the establishment of an al-Qaeda safe haven in Iraq -- and in this sense, it has already proven its worth.

 

 

January 14, 2008

Readings(Iraq Jul-Dec07): Catastrophe to Success to Not-disussed ?

Now that we're getting back into the swing of things it seemed like it was time to re-visit Iraq. As part of that we reviewed all the prior '07 collections of stories and links and consolidated them below. It actually turns out to be much longer than anticipated and might have been better split into two major postings. However the number of major stories has dropped so precipitously that that may not be required in the future. We'll see but in the meantime here's a single central place to go. While you may not care to "read" them we'd suggest it's worth a quick skim of the excerpts, at least the titles. What you'll find, we believe, is a rather rapid and deep structural change in what's going on.

If you'll cast you mind back to about this time last year the biggest headlines were about the plans for a "Surge" to support a major new counter-insurgency doctine. Which was bitterly opposed by all right thinking sorts, mainly the Democrats but certainly with the obvious exception of McCain almost silent Republican support. In fact many of them were bailing out. Yet talk about a withdrawl, even a precipitous one, was still a major headline thruout the summer. As you'll be able to see below. It slowly began to be displaced by another meme of "Gen. Petraeus needs time". Actually given an initial surge and doctine change circa Feb/Mar to "neutral" results by mid-summer to a very strong status report in Oct. or so, which was still badly poo-poohed by most of the pundits, including the faculty at the Kennedy School (some of whom had helped shape it !) to now when, lo and behold, it's come off the table. More interestingly it's also come out of the candidates back of major themes to hammer on. Which in a way is really too bad since we should have a serious national debate.

Meanwhile we'll point you at the extensive listing of stories and links below the continuation, the two excerpts below and rather recent Charlie Rose appearance by the Bagdhad bureau chief of the NYT which has a certain tone of "gee, we didn't expect this to work and we can't tell you why it is but it is though there are still problems". Which is about what Petraeus and everybody has been saying for some time.

 Introduction

Here's the introductory excepts which put it all in a nutshell:

1. This Won't Be The Iraq Election The Presidential campaign has jostled this way and that, contenders have risen and fallen, but the one fixture in the political firmament has been Iraq. Polls have consistently said Iraq would be the central issue of the 2008 campaign. The candidates have developed elaborately studied and rehearsed positions on the war. But what if the subject moves off center stage? In the new NEWSWEEK Poll, the economy now tops Iraq as the issue that voters say will most influence their choice for president, 22 percent to 19 percent. When the president announced the surge last January, I wrote a column arguing that it was likely to succeed militarily (by providing better security) but would probably fail politically (because of a lack of political reconciliation). I was both right and wrong. More U.S. troops have meant better security. But they are not at the heart of current improvements in Iraq. The key is that Petraeus has been willing to do what no American official has until now: accept Iraq for what it is and not what Washington wants it to be. Searching for a stable order, Petraeus has allied himself with whoever, within reason, could produce that order.

2. Petraeus's Iraq I've just returned from a week in Iraq with Gen. David Petraeus and his operational commanders. My intent was to look at events from an operational perspective and assess the surge. What I got was a soldier's sense of what's happening on the ground and, although the jury is still out on the surge, I came to the conclusion that we may now be reaching the "culminating point" in this war. The culminating point marks the shift in advantage from one side to the other, when the outcome becomes irreversible: The potential loser can inflict casualties, but has lost all chance of victory. The only issue is how much longer the war will last, and what the butcher's bill will be. Battles usually define the culminating point. In World War II, Midway was a turning point against the Japanese, El Alamein was a turning point against the Nazis and after Stalingrad, Germany no longer was able to stop the Russians from advancing on their eastern front. Wars usually culminate before either antagonist is aware of the event. Abraham Lincoln didn't realize Gettysburg had turned the tide of the American Civil War. In Vietnam, the Tet offensive proved that culminating points aren't always military victories. Culminating points are psychological, not physical, happenings. But successful counterinsurgency operations don't capture fixed objectives. They create what soldiers call "white spaces," areas devoid of influence, political vacuums that compel occupancy by either an enemy seeking to rebound after defeat or by legitimate government forces seeking to establish regional control. In Iraq now, the white spaces are being filled with a newly resurgent Iraqi military and clusters of Concerned Local Citizens Councils, which sprouted spontaneously as Sunni tribal sheikhs smelled both success and commitment from us. To be sure, Baghdad and the surrounding belts are not yet safe. But culminating points are psychological events. What I witnessed firsthand in Iraq was a shift in opinions and a transfer of will among Iraqis, not a classic military takedown. This change was palpable and unmistakable. Whether this military culminating point can translate into a political and economic culminating point remains to be seen. But the campaign that took place from spring until late summer reinforces the classic tenet of warfare, that success on the ground sets the conditions for diplomatic and political success. Retired Major Gen. Scales, a former commandant of the Army War College, is president of Colgen Inc., a defense consulting firm.

 

15Jul07

The Lie Mutually Agreed Upon Yet another Marine has won a court victory in the investigation of the battle at Haditha – adding more doubts to the claims of a massacre. In this case, the officer conducting an Article 32 hearing (equivalent to a grand jury hearing in civilian courts) has ruled that charges should be dropped. In essence, the claims of a massacre at Haditha are now looking false. That said, al Qaeda, through some adept media manipulation, has still won a victory.

 Why I Declined To Serve What I found in discussions with current and former members of this administration is that there is no agreed-upon strategic view of the Iraq problem or the region. In my view, there are essentially three strategies in play simultaneously. The first I call "the Woody Hayes basic ground attack," which is basically gaining one yard -- or one city block -- at a time. Given unconstrained time and resources, one could control the outcome in Iraq and provide the necessary security to move on to the next stage of development. The second strategy starts with security but adds benchmarks for both the U.S. and Iraqi participants and applies time constraints that should guide them toward a desired outcome. The value of this strategy is that everyone knows the quantifiable and measurable objectives that fit within an overall strategic framework. The third strategy takes a larger view of the region and the desired end state. Simply put, where does Iraq fit in a larger regional context? The United States has and will continue to have strategic interests in the greater Middle East well after the Iraq crisis is resolved and, as a matter of national interest, will maintain forces in the region in some form. Of the three strategies in play, the third is the most important but, unfortunately, is the least developed and articulated by this administration.

22Jul07

Commanders and U.S. Envoy Seek More Time for Iraq :The top commanders in Iraq and the American ambassador to Baghdad used video links with Washington on Thursday to appeal for more time, both to allow for success on the ground, and to more fully assess if the new strategy is making gains. But their appeals, in a trio of video sessions to Capitol Hill and the Pentagon, were met with stern rebukes from lawmakers from both parties. Senior Republicans and Democrats told the generals and the ambassador that time is running out, both for Prime Minister Nuri Kamal al-Maliki to reach accommodation with warring religious factions inside the country and for what remains of Congressional support for the heightened troop levels that President Bush ordered in January.

Bush, Iraq Critics Both Duck Debate on Impact of Their Policies: President George W. Bush and his critics, locked in an argument over what happens next in Iraq, have side-stepped the vital issue of what happens later. As a result, the Senate debate on Iraq this week focused entirely on near-term questions such as whether security is improving on Baghdad streets or if Iraqi politicians will act by September to unify their country. What is absent, according to national security experts, is any discussion of the long-range implications of these clashing visions for Iraq: the probability that a pullout would precipitate a huge spike in violence while a sustained commitment would keep troops on the ground for years to come.

29Jul07

Exit Strategies If U.S. combat forces withdraw from Iraq in the near future, three developments would be likely to unfold. Majority Shiites would drive Sunnis out of ethnically mixed areas west to Anbar province. Southern Iraq would erupt in civil war between Shiite groups. And the Kurdish north would solidify its borders and invite a U.S. troop presence there. In short, Iraq would effectively become three separate nations. That was the conclusion reached in recent "war games" exercises conducted for the U.S. military by retired Marine Col. Gary Anderson. "I honestly don't think it will be apocalyptic," said Anderson, who has served in Iraq and now works for a major defense contractor. But "it will be ugly."

Iraqi Withdrawal: Seven Scenarios : What happens if the United States and coalition forces withdraw rapidly from Iraq? The U.S. and the Iraqi governments have their own scenarios. Iran, al-Qaida, Syria and Turkey have also analyzed potential outcomes. Business and government make plans. Every plan anticipates a future outcome. Since the future can't be predicted, the best plans acknowledge uncertainty. Acknowledging uncertainty means accepting risk -- the risk of being wrong. The art of leadership is being "less wrong."  Here are seven "scenarios" sketching "potential outcomes" of a quick withdrawal from Iraq. These scenarios are not mutually exclusive. You will find bits and pieces in all seven:

·         Why Iraq Can Weather a U.S. Troop Withdrawal: The U.S. could withdraw the bulk of its forces from Iraq without facing the dire consequences predicted by some of the war’s defenders, says former U.S. diplomat Peter Galbraith. In the war’s first few years, backers of the U.S. invasion talked about the advantages of victory. Now, says Mr. Galbraith, the U.S. presence in Iraq is largely defended with the warning that if the U.S. leaves, violence in Iraq would intensify, destabilizing the region and exacerbating the terrorist threat to the U.S.

·         What If...'  Given the problems and US casualties in Iraq, polls show a large majority of the American people believe the invasion of Iraq was a mistake. Yet, if we imagine what the world would look like today if Saddam Hussein had not been deposed, it seems clear that almost no outcome in Iraq would be as adverse to the interests of the United States as today's world with Saddam still in power. It is important to recall that Saddam had thrown the UN weapons inspectors out of Iraq in 1998, and only allowed them to return in 2002 because of the credible threat of a US attack. In addition, the sanctions regime was collapsing—Saddam had learned how to extract billions of dollars for weapons out of the humanitarian exceptions to those sanctions--and our European friends, and perhaps UN officials themselves, were complicit in this. Under these circumstances, Saddam could not have been "contained" or rendered harmless, and Iraq could not have been indefinitely subject to UN inspections. At some point, Saddam would have been able to throw out the inspectors again, with no further action by the UN. It was clear that the UN itself would do nothing to enforce its own resolutions.

The Real War and Why It's Ignored: There are several large scale counter-terror operations going on. Each one has five to ten thousand troops (usually about a third of them Iraqi) sweeping through an area long used by terrorists for bases.) One such operation, "Marne Torch" reports that, after six weeks, 1,152 buildings were searched, 83 terrorists killed, 278 arrested or captured (depends on if they were armed and shooting when caught), 51 weapons caches found, 51 terrorist boats (used to move men and weapons via water) destroyed and 872 suspects entered into the electronic database. That last item, the database, is proving more valuable as time goes by. With nearly half a million people entered in it so far, more of the usual suspects are being identified and eventually arrested. But the war is still not the major problem. Corruption and  incompetent  government are.  Corruption is pervasive throughout the Middle East, and so common that it is simply accepted by most locals and foreign visitors. But the inability to create a civil society leads to widespread incompetence in government. Then there's the Sunni Arab intransigence. Most of the violence initially came from Sunni Arabs, led by military officers and secret police officials who wanted their jobs, and privileges, back. The Sunni Arabs have a high opinion of themselves, which is somewhat justified by their high educational and skill levels. For most of the last year, the U.S.  response to the corruption, incompetence and intransigence has been to attack it  head on. This is how things are done in the Middle East. Except for Israel and Turkey, there are no working democracies in the region. It's all bullies and police state politics. The locals understand a good hit up side the head.

5Aug07

General Petraeus Needs Time 'This [Iraq] war is lost," Senate Majority Leader Harry Reid has stated emphatically and without qualification. "There's simply no evidence that the escalation is working," he said recently. It requires "blind hope, blind trust" to believe in progress of any sort. Sen. Reid is now in the position of having to deny facts on the ground in order to sustain his bleak judgments. And his job is getting more difficult all the time. Shiite death-squad activity and executions in Baghdad have significantly decreased since January. In Anbar Province and increasingly in Diyala Province, tribal sheikhs have turned against al Qaeda and are now siding with American and Iraqi Security Forces (these are examples of "bottom-up" political reconciliation for which we had been hoping). Attack levels in Anbar have reached a two-year low. Ramadi, once among the most dangerous cities in Iraq, is now dramatically safer. Violence in Fallujah has declined. Al Qaeda's networks and safe havens are being disrupted beyond anything we have seen before. Perhaps this attitude is rooted in war weariness. The Iraq war has been a long and difficult struggle. Mistakes and misjudgments have been made, false summits have dashed early hopes, and more than 3,600 American military lives have been lost, causing unspeakable grief for families and friends of the fallen. Yet tragically, more often than not, this is the nature of war, which involves unexpected costs and awful sacrifices. There comes a point in many wars, maybe in most wars, where the single most important issue is whether a nation can summon the resolve and courage to see a good cause through to the end. We are now at that point in the Iraq war. We have in place the right team, pursuing the right strategy. The thing Gen. Petraeus needs above all else, he says, is time. The American political class can give him that time, if it chooses. We are not passive actors in this clash of force and wills, and defeat is not fated. We can still shape the outcome of the war, and with it, the future of the Middle East.

·         Pentagon May Find Bombs, Heat, Vietnam Lessons Extend Iraq Exit The Pentagon, under pressure to start planning for an Iraq withdrawal whether it begins in two months or two years, may find that getting out will take a lot longer than getting in. U.S. troops will have to contend with terrorist bombs, wilting heat, dangerous roads and logistical logjams that even critics of the war say will make a rapid pullout impossible. ``I thought it would take six months,'' said Representative John Murtha, a Pennsylvania Democrat who first advocated withdrawal in 2005. ``I found out since then it will take longer than that, the footprint is so much bigger.'' Calls are building in Congress and among Democratic presidential candidates for a drawdown of U.S. forces and for the Pentagon to begin planning how to do it. Two senior Republican senators, John Warner of Virginia and Richard Lugar of Indiana, want to see such a plan by Oct. 16, and Democrats such as Senator Hillary Clinton of New York also have raised the issue. While the administration has opposed the Warner-Lugar legislation, Defense Secretary Robert Gates, in a July 25 letter to Clinton, said the Pentagon is doing ``contingency planning'' for how the U.S. would withdraw from Iraq ``at the right time.'' The pressure to change course in Iraq is likely to peak in September, when Congress gets a report from two top U.S. officials in Iraq that all sides in the debate have identified as a pivotal moment.

·         Joint Chiefs Nominee Questioned on Iraq The Navy admiral nominated to become chairman of the Joint Chiefs of Staff said Tuesday that American military efforts in Iraq would fail unless Iraqi leaders did more to bridge sectarian divides. But he also warned that a rapid exit of American troops could turn Iraq into a “cauldron” for broader Middle East strife. The failure of the Iraqis to make progress toward political unity imperils Iraq, said the nominee, Adm. Michael G. Mullen, who said that unless things changed, “no amount of troops in no amount of time will make much of a difference.” He said he believed that the American troop increase this year in Iraq had helped tamp down violence, saying security was “not great, but better.” But he also said that the United States risked breaking the Army if the Pentagon decided to maintain escalated troop levels in Iraq beyond next spring.

A War We Just Might Win VIEWED from Iraq, where we just spent eight days meeting with American and Iraqi military and civilian personnel, the political debate in Washington is surreal. The Bush administration has over four years lost essentially all credibility. Yet now the administration’s critics, in part as a result, seem unaware of the significant changes taking place. Here is the most important thing Americans need to understand: We are finally getting somewhere in Iraq, at least in military terms. As two analysts who have harshly criticized the Bush administration’s miserable handling of Iraq, we were surprised by the gains we saw and the potential to produce not necessarily “victory” but a sustainable stability that both we and the Iraqis could live with. But for now, things look much better than before. American advisers told us that many of the corrupt and sectarian Iraqi commanders who once infested the force have been removed. The American high command assesses that more than three-quarters of the Iraqi Army battalion commanders in Baghdad are now reliable partners (at least for as long as American forces remain in Iraq). Another surprise was how well the coalition’s new Embedded Provincial Reconstruction Teams are working. Wherever we found a fully staffed team, we also found local Iraqi leaders and businessmen cooperating with it to revive the local economy and build new political structures. Although much more needs to be done to create jobs, a new emphasis on microloans and small-scale projects was having some success where the previous aid programs often built white elephants.

  • Recalibration It's a cardinal rule in Washington, for reporters and politicians: never let yourself fall behind a scandal, story or trend. That's why we're starting to see a "recalibration" on Iraq by members of the mainstream media, and even some Democrats in Congress. As El Rushbo detailed yesterday, a shift appears to be underway inside the Beltway, with reporters and pols saying things about Iraq that were unimaginable just a few weeks ago. Look for more to join their ranks in the coming weeks, ahead of the September report by our top ground commander in Iraq, General David Petraeus.

19Aug07

On the Road to Jalalabad Sen. Hillary Clinton has cynically charged that we are "losing the fight to al Qaeda and bin Laden" in Afghanistan. But on my eighth trip to Afghanistan (last month) I saw that the trend lines are up, not down. The first encouraging sign came in Dubai as I boarded my flight for Kabul. Afghanistan's main private air carrier, Kam Air, has recently added a second daily round trip between Kabul and Dubai.I spotted similarly hopeful trends in three heavily Pashtun provinces -- Nangarhar, Laghman and Khost -- in eastern Afghanistan. But first, it's important to note that to talk about "reconstruction" is the biggest lie in Afghanistan. Before the Soviet invasion in 1979, Afghanistan was long one of the poorest countries in the world and has never had a lot of infrastructure. There are ruins in the country, of course, but 95% of them are in or near Kabul itself. Most of Afghanistan lives much as it always has, subsisting on small-scale farming and trading. We can do nothing about many of Afghanistan's barriers to development. For starters, 86% of its land area is non-arable. It has also never had a broad distribution of income or land. According to Afghan-Australian historian Amin Saikal, up until the early 1920s when King Amanullah gave crown lands to the poor, only 20% of peasants worked their own properties. This is why many foreign development experts working in Kabul say privately that if in a couple of decades Afghanistan reaches the level of Bangladesh -- which in 2006 had a per capita GDP of about $419 per year, one of the lowest in the world -- then they will judge their time in the country a success.

  • Syrian Survey Despite powerful anti-American feelings and support for Iraqi fighters, 63% of Syrians still favor Syria working with the United States to help resolve the Iraq war. This is the most stunning finding of a new and unprecedented nationwide survey of Syria by Terror Free Tomorrow. It was conducted from a country in the region by phone during July, and more than a thousand people were interviewed across all 13 provinces of Syria.
  • The United Nation Returns to Iraq Four years after an explosives-packed suicide cement truck blew up and destroyed the U.N. headquarters building in Baghdad, the United Nations Security Council voted unanimously to expand its operation in Iraq. The Aug. 19, 2003, terror bombing wounded over a hundred people and murdered 22. The dead included the distinguished Brazilian diplomat Sergio Vieira de Mello, who was serving as the United Nations' "special representative" in post-Saddam Iraq. Then-U.N. Secretary General Kofi Annan had prevailed on de Mello to take the job. De Mello viewed himself as a diplomat with a lot of experience in "the field" -- which he once described in an essay as a place where he had "seen the best and worst of what we have to offer each other." Everyone who has worked in the world's various hells understands that confronting them requires charity, mercy, discipline, courage and sacrifice. That was de Mello's point and why he went to Iraq. In the wake of the 2003 massacre, the United Nations effectively withdrew from Iraq, maintaining an office in Jordan and a flickering presence in Baghdad. Arguably, U.N. Security Council Resolution 1546 (passed on June 8, 2004) ratified the general thrust of U.S. political development policy in Iraq. It mapped a route to full Iraqi sovereignty and stated that the United Nations Assistance Mission for Iraq (UNAMI) would play a leading role in elections, "consensus building," national reconciliation, and judicial and legal reform.
  • Fantasies and Competence Coexist Shia warlord Moqtada al Sadr appears to have fled back to Iran once more, apparently in reaction to increased military pressure on his armed followers. The U.S. knows who al Sadr's key military lieutenants are, and these guys are being arrested, or killed while trying to avoid capture. When American and Iraqi forces raid Sadr's people, they often find Iranians (who claim to be religious pilgrims). There are 2,760 foreigners in Iraqi jails, including 800 Iranians. Most of the rest are Arabs. Iraq would like some cooperation from the countries these people, most of them terrorism suspects, came from. The Iranians deny any involvement, despite incriminating documents and the confessions of some of their agents. Iraqis are getting tired of Iranian involvement, especially after Iran sponsors the assassination of popular Iraqi Shia politicians, as recently happened with the  anti-Iranian governor of Qadisiya province. Sunni Arab politicians are openly pleading with neighboring Sunni nations to rescue Iraqi Sunnis from Iranian-backed attacks. These pleas have been made before, and are largely ignored now. No one wants to back a loser, especially a loser that kills Moslem women and children.

Professors on the Battlefield The Human Terrain System. It embeds social scientists with brigades in Afghanistan and Iraq, where they serve as cultural advisers to brigade commanders.The Human Terrain System is part of a larger trend: Nearly six years into the war on terror, there is reason to believe that the Vietnam-era legacy of mistrust -- even hostility -- between academe and the military may be eroding. This shift in the zeitgeist is embodied by Gen. David H. Petraeus, commander of the multinational forces in Iraq. Gen. Petraeus, who holds a doctorate from Princeton University in international relations, made a point of speaking on college campuses between his tours in Iraq because he believes it is critical that America "bridge the gap between those in uniform and those who, since the advent of the all-volunteer force, have had little contact with the military."

9Sep07

A Fatwa Against Violence Last week, I participated in a three day meeting here that included six of the most senior Iraqi Sunni and Shia religious leaders. At the meeting, held at a Marriott hotel in a Cairo suburb, they formally agreed to "end terrorist violence, and to disband militia activity in order to build a civilized country and work within the framework of law." This gathering was a truly historic event, given the authority of the participants -- including Sheikh Ahmed al Kubaisi, acknowledged by all Iraqis as the senior Sunni religious authority (the weekly audience for his Friday sermons, broadcast from Dubai, number 20 million), and Ayatollah Sayyid Ammar Abu Ragheef, chief of staff for Grand Ayatollah Ali al Sistani, the acknowledged leader of the Shia community in Iraq and beyond. One has only to consider the power of these specific religious leaders, and the instruments at their disposal for getting results, to grasp the gathering's enormous potential importance. Going well beyond traditional rhetoric in their closing statement late last week, they stated their intention to work for the early issuance of a joint Sunni-Shia fatwa to the Iraqi people. A fatwa such as this will carry the force of law for all followers. Think about that. After more than four years of brutal warfare and untold suffering, the leading religious authorities in Iraq have joined hands and said "Enough," and have committed to use their authority to bring peace to their country.

 

What France can do in Iraq What can be said about Iraq today? It is a "democratic" country - with a Constitution adopted by referendum and universal direct suffrage - that is at war with itself. It is a country liberated from a bloodthirsty dictatorship - which killed between 2 million and 4 million people - where blood continues to be shed. It is a country of paradox and segmentation, like the hearts and minds of its people. Outside of a highly protected "Green Zone" in Baghdad, and a more or less stable Kurdish region, Iraq is being ripped apart by a storm of hatred and violence that has driven 4 million refugees from their homes and continues to kill nearly 2,000 people every day. I have just returned from three days in Iraq. I went to listen to the candid views of its people - Shiites, Sunnis, Kurds and Christians - in order to get a feel for what they think. I also wanted to express France's complete support for the crucial goal of national reconciliation and for the inclusive dialogue that is needed to bring this about. In my conversations there, I perceived a deep need among many Iraqis for recognition and for new ties with France and Europe. The Iraqis have been isolated for too long and feel abandoned by the international community. After years of debating the American presence in Iraq, the time has come for us to turn our attention to the Iraqis themselves. What can France do to help this ravaged country recover hope? First, it can be modest. No one imagines that we have a magic formula. But as one Iraqi official said when I asked him what France could do, "It can offer a fresh look." Another official added, "Restore our self-respect." The dream of an Iraq at peace with itself is not beyond reach. Much effort, clear-headedness and conviction can make it a reality - provided we all have the courage to get the job done. If we shy away from this, we can expect the worst.

Iraq Domestic

If Maliki Isn’t the Right Man, Who Is Better? Some U.S. politicians have called for the ouster of Iraqi Prime Minister Nouri al-Maliki, but his departure could undermine the war-torn country’s few surviving pockets of democracy, says historian Juan Cole in Salon. Mr. Maliki has been taking a drubbing lately from both sides of the aisle, as prominent senators look for a politically safe way of attacking the Bush administration’s Iraq policy without seeming soft on defense. Hillary Clinton (D., N.Y.), Carl Levin (D., Mich.) and John Warner (R., Va.) have accused the Shiite Mr. Maliki of not building a stronger coalition with Sunni parties. Mr. Maliki has many faults, says Dr. Cole, but few if any politicians in Iraq could build enough support across the sectarian divide to more effectively achieve U.S. aims. If Mr. Maliki stepped down, his successor most likely would emerge either from his own party or another Shiite party, the Supreme Islamic Iraqi Council led by cleric Abdul Aziz al-Hakim. The elevation of the SIIC, which is bothfriendlier to Iran than Mr. Maliki and more hostile to Sunnis, hardly would play into U.S. hands. Forming a new government could take six months, deepening the country’s political gridlock. Meanwhile, the split between Sunni factions and the Shiite-Kurdish political alliance might widen, further denting U.S. goals for a peaceful and democratic Iraq. For Republicans in particular, taking on Mr. Maliki avoids raising questions about President Bush’s handling of the war, says Dr. Cole, a professor of Modern Middle East and South Asian history at the University of Michigan. Dr. Cole says U.S. politicians might be right that Mr. Maliki isn’t the right man for the job, but they would do better to leave Mr. Maliki’s fate to the Iraqi parliament, or else “undermine what little faith remains in democracy in Iraq.”

Maliki met with Iraq's top Shiite cleric to discuss the possibility of forming a new government, efforts to fill vacant cabinet posts. During the closed-door meeting in Najaf, Mr. Maliki briefed Mr. Sistani over efforts to fill cabinet jobs vacated when ministers from the largest Sunni Arab bloc and radical cleric Muqtada al Sadr's movement pulled out to protest the prime minister's policies. In addition to filling the cabinet posts, Mr. Maliki said he also discussed the possibility putting together a new government -- one made up of nonpartisan technocrats -- though he emphasized it was currently only an "idea" that was being considered among others. Mr. Maliki didn't give a time frame for making a decision, but he made it clear his government cannot go on indefinitely with an incomplete team of ministers, as has been the case since six Sadrist ministers quit in April over his failure to announce a timetable for the withdrawal of foreign troops in Iraq. The Sunni Arab ministers withdrew in August.

Iraq & US

If Iraq Falls In contrast to President Bush's dark comparison between Iraq and the bloody aftermath of the Vietnam War last week, there is another, comforting version of the Vietnam analogy that's gained currency among policy makers and pundits. It goes something like this: After that last helicopter took off from the U.S. embassy in Saigon 32 years ago, the nasty strategic consequences then predicted did not in fact materialize. The "dominoes" did not fall, the Russians and Chinese did not take over, and America remained No. 1 in Southeast Asia and in the world. But alas, cut-and-run from Iraq will not have the same serendipitous aftermath, because Iraq is not at all like Vietnam. Unlike Iraq, Vietnam was a peripheral arena of the Cold War. Strategic resources like oil were not at stake, and neither were bases (OK, Moscow obtained access to Da Nang and Cam Ranh Bay for a while). In the global hierarchy of power, Vietnam was a pawn, not a pillar, and the decisive battle lines at the time were drawn in Europe, not in Southeast Asia. The Middle East, by contrast, was always the "elephant path of history," as Israel's fabled defense minister, Moshe Dayan, put it. Legions of conquerors have marched up and down the Levant, and from Alexander's Macedonia all the way to India. Other prominent visitors were Julius Caesar, Napoleon and the German Wehrmacht. The Bush presidency will soon be on the way out, but America is not. This truth has recently begun to sink in among the major Democratic contenders. Listen to Hillary Clinton, who would leave "residual forces" to fight terrorism. Or to Barack Obama, who would stay in Iraq with an as-yet-unspecified force. Even the most leftish of them all, John Edwards, would keep troops around to stop genocide in Iraq or to prevent violence from spilling over into the neighborhood. And no wonder, for it might be one of them who will have to deal with the bitter aftermath if the U.S. slinks out of Iraq. These realists have it right. Withdrawal cannot serve America's interests on the day after tomorrow. Friends and foes will ask: If this superpower doesn't care about the world's central and most dangerous stage -- what will it care about?

This Isn't Civil War We are winning this war. I write those words from my desk in the Red Zone in downtown Baghdad as hundreds of Iraqis working with my company -- Shia and Sunni, Arab and Kurd -- execute security, construction and logistics missions throughout the capital and Sunni Triangle. We have been here now over three years.American-Iraqi Solutions Group, which I helped co-found in March 2004, has been intimately involved with creating the new Iraqi security services. Our principal business as a U.S. Department of Defense contractor is to build bases for the Iraqi army and police and then supply them with water, food, fuel and maintenance services. We are on the cutting edge of the exit strategy for the U.S. military: Stand up an effective Iraqi security structure and then we can bring our troops home. We are not out of the Iraqi desert yet. But the primary problems we now face on the ground are controllable, given a strong American military presence through 2008. These problems include the involvement of Iran in fueling Shia militancy, the British failure to uphold their security obligations in the south and the tumultuous nature of a new democracy. Ambassador Ryan C. Crocker recently said the one word he would choose to describe the feelings of the Iraqi people was "fear." A bad choice, from my observation. That's not the prevailing state of mind, except maybe for those sheltered souls in the Green Zone who are getting hit on a regular basis for the first time in more than a year by primarily Iranian-supplied rockets and mortars. What I see on the faces of the thousands of Iraqis working with us, including our subcontractors and suppliers as well as on the faces of the Iraqi army and police, patrolling and manning the checkpoints and assisting U.S. soldiers in searching for the insurgents is grim determination to get the job done. I also see exhaustion -- exhaustion with the insurgency, whether it be al Qaeda, neo-Saddamist, or Jaish al Mahdi (JAM), or the Shia militia of Moqtada al-Sadr. The exhaustion is real, and the evidence of the falling support among the Iraqi people for the insurgency in its various guises is inescapable -- unless you are deliberately looking the other way. A large proportion of our thousand-man work force -- of which 90% are Iraqi citizens -- comes from Sadr City, the Shia slum in east Baghdad. Many carry weapons. These Shia warriors have emphasized in the past several months that they and their neighbors are tired of conflict and only want to feed their families.

Gen. Petraeus' Pivotal Report There really is no particularly informative historical precedent for Gen. David Petraeus' upcoming public assessment of Iraq. Perhaps we are entering new historical terrain, where the commanding general's pivotal strategic gambit is a media event. And media event it is. With its certain long-term global import and short-term political impact, Petraeus' report meets a hustling television exec's primal requirement: drama. When the spotlight strikes his face and he begins to speak, we will witness drama in large letters. No one, however, should confuse the general's appearance with entertainment. The quick commentators will dub his report a historical pivot. That will be true, but only in a narrow sense. Despite the sensationalist headlines and hyperbolic fretting, given the decades of terror and the centuries of political fossilization afflicting the Middle East, the trend lines in The War on Terror are astonishingly good. Trends are the great truths behind pivotal moments, and Petraeus is aware of that. Since 9-11, America has made great strides in addressing at the fundamental level the social pathologies that seed Islamo-fascist terrorism. In short form it is this: The choice between tyrant and terrorist is no choice. Modernity requires a degree of social consensus and economic liberalization. Iraq is thus a radical experiment in modernity in a vital region afflicted by economic failure, tribal factiousness and oil-dollar powered feudalism.

The Facts On The Ground The major problem in Iraq is back in the United States. There, many politicians either don't bother, or don't want to believe, what is actually happening, and has happened, in Iraq. In a way, that makes sense. Because what is going on in Iraq is so totally alien to the experience of American politicians. But many Americans take a purely partisan, party line, attitude towards Iraq. So logic and fact has nothing to do with their assessments of the situation. The facts are these. Iraq is an ancient civilization that has been subjected to foreign occupation (Mongol, Iranian, Turkish, British) for the last thousand years. Iraq was put together by the British, in the 1920s, from fragments of recently dissolved Turkish Ottoman empire. The northern part of Iraq, containing mainly Kurds, was considered part of Turkey itself, and not an imperial province like the rest of Iraq. But there was oil up there, and the British did not want the Turks to have that, in case there was an effort to revive the Ottoman empire. The British set up a constitutional monarchy, complete with parliament, and royal family imported from Saudi Arabia (a noble family that had been ousted by the Sauds). While democracy was alien to this part of the world, many Iraqis took to it. But there were serious problems with corruption, tribal, ethnic and religious loyalties. The Kurds weren't Arab (they were Indo-European, and about 20 percent of the population), 60 percent of the Moslems were Shia (a sect considered heretical by the conservative mainline Sunnis). The Sunni Arabs may have been a minority, but they dominated commerce, government, education and running things in general. Since the 16th century, the Sunni Turks had relied on the Baghdadi Sunni Arabs to help run things.

In Iraq, one man's Mission Impossible A former Silicon Valley exec turned Pentagon boss wants to put Iraq back to work. But he's run into many roadblocks - including his own government. One of the little-known consequences of the American-led regime change four years ago was that most of the country's half-million industrial workers lost their jobs when the Baathist government, which had run the factories, collapsed. American administrators, who believed the Soviet-style system was antiquated, inefficient, and, well, socialist, had no interest in restarting the factories. Pure, unvarnished, American-style capitalism was the answer. But while waiting for Adam Smith, says Sabah al Khafaji, the director-general of the bus factory, some of his former workers joined the insurgency. "At least they paid," he says through a translator.Brinkley has another idea. A balding systems engineer with four patents to his name and backslapping Texas charm, he says his strategy isn't rocket science: If you have a decent job, you're less likely to plant a roadside bomb. But the implementation of that strategy has proved far more complicated and controversial than anyone expected. Money to get the factories restarted has been hard to come by. Finding buyers for the goods in the U.S. has been even harder (only one company, a small Memphis retailer, has signed on so far). And that's on top of the Herculean challenges of doing business in a war zone where electricity is erratic, supplies are scarce, and employees can get blown up on the way to work. Even people in his own government snipe at him. Brinkley has been called a "Stalinist" hell-bent on fixing a broken system and a "well-intentioned guy on a fool's errand." Of course, no one will confuse this place with a Toyota plant in Kentucky. The workers wear sandals, the machinery is from the 1970s, and most of the welding is still done by hand. The buses themselves probably wouldn't stand up to Western quality standards. Inside one of the coaches the screws don't seem fully secured, the welding appears uneven, and the upholstery doesn't fit. "We are in the Stone Age," says one worker, putting down his Russian-made drill. He refuses to give his name for fear of being singled out by the insurgents: "No good can come from talking to Americans." Brinkley was there that day to hand al Khafaji a check for $1.5 million - or at least an oversized ceremonial version of one - so that he can buy new machinery. "What's the alternative?" Brinkley asks. "We've been at this for four years. A free market hasn't emerged. You've got over 50% unemployment. Can't we take it as table stakes that mass unemployment creates social unrest? If you're not going to try to put everybody back to work anyway you can, what do you do? Just pull out and leave them unemployed and angry?"

U.S. Shifts Iraq Focus As Local Tactics Gain The Bush administration is quietly moving toward a major shift in Iraq policy, driven by successes in formerly intractable insurgent strongholds combined with dispiriting failures at fostering national reconciliation. After almost four years of trying to build Iraq's central government in Baghdad, the U.S. has found that what appears to work best in the divided country is just the opposite. So senior military officials are increasingly working to strengthen local players who are bringing some measure of stability to their communities. The new approach bears some striking similarities to the "soft partition" strategy pushed by senior Democrats, and suggests that despite the often bitter debate in Washington on Iraq policy, a broad consensus on how to move ahead in the war-torn country may be forming. senior military officials are worrying less about the dysfunctional central government that has been the focus of so much effort in the U.S. military and political strategy over the last three years. The change is the simple outgrowth of what the summer surge of more than 30,000 troops into Iraq has wrought. The U.S. has been most successful in areas where it has taken an intensely local approach, working with local leaders who share U.S. goals. The logical result of the new policy is a profound shift away from the Bush administration's original goal of building a multisectarian democracy in the heart of the Middle East. Instead, the new strategy seems likely to lead to an Iraq with a very weak central government and largely self-governing and homogenous regions. Over the long term the goal is to connect these local leaders to the central government by making them dependent on Baghdad for funds. To qualify for U.S. assistance, local groups must pledge loyalty to the central government, though many Sunni leaders who are working with the U.S. complain the Shiite dominated government is illegitimate.

Mahdi Militia Stymies U.S. Security Push U.S. commanders intent on building capable Iraqi security forces and a competent Iraqi government say their efforts are increasingly being stymied by the radical Shiite Mahdi Army. The group emerged in 2003 to defend Shiite neighborhoods from attacks by Sunni insurgents. Today, the Mahdi Army has infiltrated Iraq's government and society so deeply that the Americans are struggling to distinguish friend from foe. The militia's political arm controls several Iraqi ministries and is a fractious member of the Shiite-dominated ruling coalition in Baghdad. Yesterday its leader, the anti-American cleric Moqtada al-Sadr, ordered a six-month suspension of all Mahdi Army activities so that he can "rehabilitate" the force. U.S. officials say Mr. Sadr's announcement is an acknowledgment that the militia's rogue elements, which have attacked U.S. forces, Sunnis and even moderate Shiites, are sapping support for his movement among Iraqis.

16Sep07

The Petraeus-Crocker Testimony "Are we fixed yet?" House Armed Services Committee Chairman Ike Skelton's question -- asked after Gen. David Petraeus' microphone failed to work -- is something of a metaphor both for Washington and Baghdad. That microphone failure at the start of Petraeus' dramatic congressional testimony is an ironic reminder. With their testimony, Petraeus and Ambassador Ryan Crocker are trying to get it fixed -- help repair and prepare America's politics. In an article published by The Weekly Standard on July 25, 2005, I wrote: "Al-Qaida's jihadists plotted a multigenerational war. That means we must fight a multi-administration war, which means bridging the whipsaw of the U.S. political cycle. ... The Bush administration has not prepared the nation for that -- at least not in any focused manner. And that omission constitutes negligence. However, Bush critics who advocate withdrawal are even more negligent, for withdrawal without ensuring Iraqi stability is a self-inflicted defeat leading to extremely dire consequences. " With the Petraeus-Crocker testimony, the Bush administration has finally begun to build that political bridge, albeit in an awkward, belated manner. The administration's Democratic opponents deserve no credit, however. These contemporary practitioners of the paranoid style in American politics have chosen angry theatrics and smear over common sense.

The next six to 12 months will determine if Petraeus and Crocker succeeded. If they do succeed, it will benefit both the Iraqi and American people, and ultimately benefit everyone on the planet who wants a more peaceful and prosperous 21st century.

AP Interview: Abizaid cites Iraq's needs It will take three to five years before Iraq's government is stable enough to operate on its own, according to the former commander of U.S. forces in the Middle East, who said the surge of American forces has not solved the country's broader problems. In an interview with The Associated Press, retired Army Gen. John Abizaid also said that beyond attacking the global threat of terrorism with military strength, the United States has done a poor job of applying the economic, political and diplomatic means to fight Islamic extremism. "I don't blame it on any people," Abizaid said Tuesday. "I just blame it on a bureaucratic system that has been unresponsive thus far to the challenges of the 21st century. We need to change that as a matter of national priority." Abizaid said none of the candidates hoping to replace President Bush can responsibly call for immediate or complete withdrawal of U.S. forces from Iraq and other trouble spots around the globe. Too many other related issues are involved, he said, including the rise of Islamic extremism, the Arab-Israeli conflict, the proliferation of weapons of mass destruction, and the need to preserve the flow of oil from the Middle East. Abizaid called these major and pressing issues to be addressed.

23Sep07

Gates Crafts Long-Term Iraq Plan, With Limited Role for U.S. Forces. Defense Secretary Seeks Bipartisan Agreement;
No Talk of DemocracyDefense Secretary Robert Gates sketched out a long-term vision for securing Iraq that includes a continuing American military force that is a fraction the size of the one there today, no permanent U.S. bases and a significant Navy and Air Force presence in the Persian Gulf region. In an interview in the Pentagon, Mr. Gates also said part of the long-range security structure would be stronger military partnerships with some of America's friends in the Gulf area, helping them build better counterterrorism forces as well as regional air- and missile-defense systems to check Iranian ambitions. What was missing from his vision for Iraq and the broader region was talk about transforming the region and spreading democracy. Instead, the Pentagon chief seemed much more focused on transforming the debate in Washington so the next president inherits a long-term strategy for Iraq and the region that both Republicans and Democrats can support. For now, that view seems to be translating into a much more pragmatic approach both on the ground in Iraq and back home. As recently as last year, U.S. war plans for Iraq focused on building a strong, multisectarian democracy that would serve as a model for the rest of the Middle East. With national reconciliation largely stalled, Mr. Gates and Gen. David Petraeus, the top commander in Iraq, have given local commanders greater latitude to forge alternative strategies that seek to stabilize specific regions across the country as the top priority -- even if it comes at the expense of a strong central government.

  • The Education of Robert Gates Over the short term, Robert Gates is, to use a phrase he borrows from the historian Joseph Ellis, “improvising on the edge of catastrophe.” Robert Gates has been a godsend. After a bombastic defense secretary, we now have a candid one. After ego, we have self-effacement. After domination, we have a man who welcomes discussion. Gates was decisive during the Walter Reed hospital fiasco. He is honest and trustworthy on Iraq. And on Monday, at the World Forum on the Future of Democracy at the College of William and Mary here, Gates delivered a speech that could define the center ground of American foreign policy. He ran through the history of the never-ending debate between realists and idealists. He noted that this debate began just after the founding of the Republic. Thomas Jefferson saw the French Revolution as a triumph for liberty. John Adams saw it as reckless radicalism. Throughout the messy years that followed, Gates explained, we have made deals with tyrants to defeat other tyrants. We’ve championed human rights while doing business with some of the worst violators of human rights. “It is neither hypocrisy nor cynicism to believe fervently in freedom while adopting different approaches to advancing freedom at different times along the way,” Gates said.

Center First Gives Way to Center Last  Have you noticed the change in the Iraq debate? Most American experts and policy makers wasted the past few years assuming that change in Iraq would come from the center and spread outward. They squandered months arguing about the benchmarks that would supposedly induce the Baghdad politicians to make compromises. They quibbled over whether this or that prime minister was up to the job. They unrealistically imagined that peace would come through some grand Sunni-Shiite reconciliation. Now, at long last, the smartest analysts and policy makers are starting to think like sociologists. They are finally acknowledging that the key Iraqi figures are not in the center but in the provinces and the tribes. Peace will come to the center last, not to the center first. Stability will come not through some grand reconciliation but through the agglomeration of order, tribe by tribe and street by street. The big change in the debate has come about because the surge failed, and it failed in an unexpected way. The original idea behind the surge was that U.S. troops would create enough calm to allow the national politicians to make compromises. The surge was intended to bolster the “modern” — meaning nonsectarian and nontribal — institutions in the country. But the surge is failing, at least politically, because there are practically no nonsectarian institutions, and there are few nonsectarian leaders to create them. Security gains have not led to political gains. At the same time, something unexpected happened. As Iraqi national politics stagnated, the tribes began to take the initiative.

30Sep07

IRAQ: The Choice Corruption, and the "culture of theft" is a major impediment to peace in Iraq. Too many Iraqis are eager to steal, and see this as a worthy way to achieve financial security. Most Iraqis profess to admire honesty and hard work. But for decades, there has been only Saddam's Sunni Arab thugs, stealing whatever they wanted. They even stole from each other, forcing Saddam to judge which thief would keep what. One nasty side effect of all this is the widespread belief that the Sunni Arabs are superior fighters and killers. This was all Shia Arabs saw for many years. Attempts to fight back were met with savage reprisals. Now, Shia Arabs see Sunni Arabs, even friendly ones, as a threat that must be eliminated. When Americans berate Iraqi officials for not getting Sunni and Shia to work together, it doesn't register. Most Shia want the Sunni Arabs dead, or gone. Reconciliation isn't even on the list of possibilities. Tell the Americans what they want to hear, and keep going after the Sunni Arabs

Iraq's Top Sunni Visits Shiite Cleric Iraq's Sunni vice president held a rare meeting Thursday with the country's top Shiite cleric to seek support for a 25-point blueprint for political reform, the latest effort by both Islamic sects to promote unity amid unrelenting violence. Vice President Tariq al-Hashemi said Grand Ayatollah Ali al-Sistani praised his initiative during their two-hour meeting in the holy city of Najaf, 100 miles south of Baghdad. The reclusive Shiite spiritual leader has previously met with Sunni clerics, but it was his first meeting with a senior government official. "He generally blesses the initiative," Mr. Hashemi said, saying he found Mr. Sistani politically "neutral" and eager to promote national unity. Mr. Sistani has played a key role in shaping the political future of Iraq following the 2003 overthrow of Saddam Hussein's regime and wields considerable influence over Shiite politicians and their followers. The blueprint, which Mr. Hashemi called the Iraqi National Compact, stressed basic democratic principles such as respect for human rights, equality before the law, the sanctity of places of worship, prohibition of the use of force to attain political goals, filling government jobs according to merit and keeping the army and police above sectarian or political affiliations. It also proposed a blanket pardon for Iraqis who took up arms against the government and the U.S.-led coalition forces in exchange for laying down their arms and joining the political process. And it included a nod to Iraq's Kurds, stating that "pending" issues could be "resolved through compromise," a reference to the disputed Kurdish claim to the oil-rich northern city of Kirkuk.

Why We're Winning Now in Iraq Many politicians and pundits in Washington have ignored perhaps the most important point made by Gen. David Petraeus in his recent congressional testimony: The defeat of al Qaeda in Iraq requires a combination of conventional forces, special forces and local forces. This realization has profound implications not only for American strategy in Iraq, but also for the future of the war on terror. As Gen. Petraeus made clear, the adoption of a true counterinsurgency strategy in Iraq in January 2007 has led to unprecedented progress in the struggle against al Qaeda in Iraq, by protecting Sunni Arabs who reject the terrorists among them from the vicious retribution of those terrorists. In his address to the United Nations General Assembly Wednesday, Iraqi Prime Minister Nouri al-Maliki also touted the effectiveness of this strategy while at the same time warning of al Qaeda in Iraq's continued threat to his government and indeed the entire region. Yet despite the undeniable successes the new strategy has achieved against al Qaeda in Iraq, many in Congress are still pushing to change the mission of U.S. forces back to a counterterrorism role relying on special forces and precision munitions to conduct targeted attacks on terrorist leaders. This year has been a different story in Anbar, and elsewhere in Iraq. The influx of American forces in support of a counterinsurgency strategy -- more than 4,000 went into Anbar -- allowed U.S. commanders to take hold of the local resentment against al Qaeda by promising to protect those who resisted the terrorists. When American forces entered al Qaeda strongholds like Arab Jabour, the first question the locals asked is: Are you going to stay this time? They wanted to know if the U.S. would commit to protecting them against al Qaeda retribution.

Oct07/Nov07/Dec07

LEADERSHIP: Scarce Iraqi Sergeants Urgently Sought The biggest leadership problem the Iraqi military has is with NCOs (noncommissioned officers, or sergeants). In the Saddam era force, the Soviet style of leadership was used. That is, sergeants had much less authority and responsibility than they do in Western forces. The new Iraqi army was built on the Western model, and for that to work, NCOs were needed. During World War II, as Western armies expanded enormously and rapidly (the U.S. Army went from 150,000 to over nine million in four years). This worked because the United States had employed capable and responsible NCOs for over a century. It was part of the culture. Every kid had at least a vague idea of what sergeants did, and it was not difficult to create several million new corporals and sergeants in four years. Iraq did not have this tradition, so U.S. and NATO trainers had to start from scratch. After four years of effort..

IRAQ: Waiting For A Miracle To Show Up The sharp drop in violence (about 70 percent nationwide versus a year ago) is being seen as the result of the Sunni Arab terrorist organizations collapsing in defeat. Most of the Sunni Arab tribes have turned against the terrorists, and the al Qaeda organization, which is responsible for most of the suicide bomb attacks, has been torn apart. Most al Qaeda leaders are dead, captured or spending most of their time trying to avoid that fate. The system of safe houses and skilled technicians (bomb makers, trainers, supervisors) has been disrupted or destroyed. Before the Summer ended, it was possible to shift many American combat units to the battle against Shia warlords. There are two of these, both backed by Iran; the Badr Brigades, and the Mahdi Army. While Iranian backed, the two organizations are still Iraqi, and keen to see a strong and independent Iraq (run by a religious dictatorship, with one of the two warlords pulling strings behind the scenes.)

WINNING: Bin Laden Admits Defeat in Iraq On October 22nd, Osama bin Laden admitted that al Qaeda had lost its war in Iraq. In an audiotape speech titled "Message to the people of Iraq," bin Laden complains of disunity and poor use of resources. He admits that al Qaeda made mistakes, and that all Sunni Arabs must unite to defeat the foreigners and Shia Moslems. What bin Laden is most upset about is the large number of Sunni Arab terrorists who have switched sides in Iraq. This has actually been going on for a while. Tribal leaders and warlords in the west (Anbar province) have been turning on terrorist groups, especially al Qaeda, for several years.  While bin Laden appeals for unity, he shows only a superficial appreciation of what is actually going on in Iraq. Al Qaeda?s Score Card

The Empty Chair at the Iraq Hearings Effective foreign policy requires paying close attention to economics, not just security and politics. Policy often falters in practice because the economic or financial aspect is overlooked.Recall the hearings on Capitol Hill in September concerning progress in Iraq. Testifying on security issues was Gen. David Petraeus, offering his expertise on counterinsurgency warfare in theory and in practice. Next to him was Ambassador Ryan Crocker, able to answer virtually any question, no matter how detailed, on the political machinations within Iraq. And next to them was the seasoned expert on economic issues in Iraq. Oops. Actually, no one was next to them. An empty chair, perhaps. But had an expert been at the witness table, the testimony might have gone. . . . Empty Chair: I am happy to report that the central bank has implemented the recommendations of the Baker-Hamilton commission in this area. It has raised the interest rate all the way to 20 percent to control inflation, and through such actions the inflation rate has come down sharply. The new Iraqi dinar, which was introduced in 2003, has proved popular and has appreciated nicely in the past year. The Central Bank of Iraq now has $21 billion in reserves, many times more than it had just after Saddam Hussein stole a billion dollars from its vaults in March 2003. This summer the Baghdad Stock Exchange opened to foreign investors, rose 85 percent in July and held its own in August. As the closely watched Grant's Interest Rate Observer noted Sept. 7, "Iraq has turned into a capital magnet. . . . Money is sometimes misinformed, but it is never insincere. Something is afoot in Iraq." So there are measurable signs of economic and financial progress.

January 12, 2008

WRFest 13Jan08: Choice, Options & Evaluations

Time to put up the weekly review of interesting stories, readings and links. One of our own was a discussion of the Iowa primary results which led to a review and a riff on candidate evaluations. But it was a retrospective one that looked back at the '04 elections as well as using the evaluation framework to do a backcast assessment of the last Clinton administration. On which our conclusions weren't particularly favorable.

Neither were our assessment of the two '04 candidates with Bush getting a C/C+ and Kerry a D/D- ranking when we looked across a weighted evaluation of their Leadership, Character and Policy evaluations. The problems of course are twofold and it's an imperfect world, always. First, we don't often get to choose a Lincoln. In fact the evidence is pretty strong that  Lincoln emerges only when the situation is so dire that a great leader is allowed to emerge when the "normal" pursuit of special interests subsides. Let's hope we don't get to that point.

The other problem is that we can't have perfect policies either. In that candidate evaluation we introduced a weighted ranking scheme that "architected" the major issues we face into three categories and some sub-categories. The diagram at right tries to capture this graphically by showing the three major categories: Foreign Affairs, Economic Policy and Social/Domestic Policy. We were in the fortuante position in the 90s of enjoying the benefits of five decades of foreign policy success with victory in the Cold War combined with a robust and innovative economy. In other word we could have focused on what is sometime the most difficult effort, major improvements in Social Policy. Instead we squandered that decade's window of opportunity and spent it squabbling over "values" issues. Well our neglect of foreign policy, vital economic development issues and re-thinking things like Healthcare, Education, and Energy are all now coming home to roost. Which is all a long way of arguing that, like candidates, we don't get to have perfect 10s. In fact on our rankings we're lucky to have made some significant catchup improvements and our hopes for the next phase are to get to 4s instead of being forced to retreat to 1s and 2s again.

As you work thru the following readings you might sort them mentally into these categories and ask yourself how you think we're doing. In some ways this is one of the better elections in that not to many outrageous mythologies are being promolgated. On the other hand, particularly in economic policy, there's a strong tendency to arm-waving, telling people what the candidates think they want to hear and that "water runs up hill" and you can "stop the tide".

Nature is nature - the goal is not to deny but to learn to cope with it, hopefully with style and grace. Or sooner or later you start needing another Lincoln. 

Values & Attitudes

The Moral Instinct Today, a new field is using illusions to unmask a sixth sense, the moral sense. Moral intuitions are being drawn out of people in the lab, on Web sites and in brain scanners, and are being explained with tools from game theory, neuroscience and evolutionary biology. “Two things fill the mind with ever new and increasing admiration and awe, the oftener and more steadily we reflect on them,” wrote Immanuel Kant, “the starry heavens above and the moral law within.” These days, the moral law within is being viewed with increasing awe, if not always admiration. The human moral sense turns out to be an organ of considerable complexity, with quirks that reflect its evolutionary history and its neurobiological foundations. These quirks are bound to have implications for the human predicament. Morality is not just any old topic in psychology but close to our conception of the meaning of life. Moral goodness is what gives each of us the sense that we are worthy human beings. We seek it in our friends and mates, nurture it in our children, advance it in our politics and justify it with our religions. A disrespect for morality is blamed for everyday sins and history’s worst atrocities. To carry this weight, the concept of morality would have to be bigger than any of us and outside all of us. So dissecting moral intuitions is no small matter. If morality is a mere trick of the brain, some may fear, our very grounds for being moral could be eroded. Yet as we shall see, the science of the moral sense can instead be seen as a way to strengthen those grounds, by clarifying what morality is and how it should steer our actions.

GRATITUDE: the Gratitude Campaign The Gratitude Campaign is an effort by Seatlite Scott Truitt to find a simple way to let our military folks apprecite what they're doing for. Irrespective of your own politics or how you feel about Iraq or the War on Terror in General they're putting it on the line for us. And doing their duty as they were asked to do their duty.

"Greater love hath no man than a mother cat dying to defend her kittens"

Robert A. Heinlein 

I doubt that many of us can appreciate what it's like to be downrange without being there, even if we know someone who's been in the real. But the dedication, hard work, risks and repeated going "In Harm's Way" our service folk are giving all that we can ask of them.

Int’l Affairs

White House Winner Must Play New Game Overseas: When American voters get in one of their ``change'' moods, as demonstrated by the galloping fever for Democratic presidential contender Barack Obama, they discount the value of foreign-policy experience in their candidates. Yet the change that will matter most to the winner in New Hampshire or November is global and outside the reach of any ballot box. The next president will inherit the biggest geopolitical shift since the Cold War's end, moving us from a world steered by a dominant U.S. to a messy multipolar planet that often will defy diminished American authority. True, the U.S. will remain the most important force shaping global affairs and providing order. Yet its currency is declining in more than one way: Its relative global economic might and financial wherewithal is shrinking, its global prestige has dulled, and Iraq has demonstrated the limits of military superiority. Thus the primary job of the next president will be coming to terms with inescapable changes of the global kind. He or she will have to be more resourceful to protect U.S. interests, more persuasive in order to galvanize allies and win over friends, and more creative in remaking enfeebled global institutions. This all comes amid tests that would defy the most-dominant power: Iraq's continuing violence, Iran's coming nukes, Pakistan's instability, Afghanistan's fragility, Russia's revisionism, rising extremism and wary allies. Veteran diplomat Richard Holbrooke, a Hillary Clinton adviser, says this all adds up to the most daunting and complex set of foreign policy challenges to face any newly elected president in U.S. history. In that respect, two recent studies are must-reads, painting a sobering picture of where the world might land if U.S. leadership continues to falter and if rising powers are neither democratic nor committed to working within institutions the U.S. and Europe created after World War II.

 

Bush of Arabia This U.S. president is the most consequential the Middle East has ever seen. It was fated, or "written," as the Arabs would say, that George W. Bush, reared in Midland, Texas, so far away from the complications of the foreign world, would be the leader to take America so deep into Arab and Islamic affairs. This is not a victory lap that President Bush is embarking upon this week, a journey set to take him to Egypt, Israel, the Palestinian territories, the Saudi Kingdom, Kuwait, Bahrain and the United Arab Emirates. Mr. Bush by now knows the heartbreak and guile of that region. After seven years and two big wars in that "Greater Middle East," after a campaign against the terror and the malignancies of the Arab world, there will be no American swagger or stridency. But Mr. Bush is traveling into the landscape and setting of his own legacy. He is arguably the most consequential leader in the long history of America's encounter with those lands. Baghdad isn't on Mr. Bush's itinerary, but it hangs over, and propels, his passage. A year ago, this kind of journey would have been unthinkable. The American project in Iraq was reeling, and there was talk of America casting the Iraqis adrift. It was then that Mr. Bush doubled down -- and, by all appearances, his brave wager has been vindicated. His war has given birth to a new Iraq. The shape of this new Iraq is easy to discern, and it can be said with reasonable confidence that the new order of things in Baghdad is irreversible. The reform of Arabia is not a courtesy owed an American leader on a quick passage, and one worried about the turmoil in the oil markets at that. It is an imperative of the realm, something owed Arabia's young people clamoring for a more "normal" world. The brave bloggers, and the women and young professionals of the realm, have taken up the cause of reform. What American power owes them is the message given them over the last few years -- that they don't dwell alone.

Speedboat Bluff in the Persian Gulf  Throwing a risky punch at the United States or Great Britain serves two distinct purposes. Armed bravado directed at "the Great Satan" and British imperialists appeals to Iranian nationalists -- at least, it has in the past. Khomeinist radicals, like Iranian president Mahmoud Amadinejad, contend that confrontation with the United States also strengthens them. The reasoning may appear convoluted, wickedly Byzantine, but if Iran's domestic malaise continues to get worse, and domestic tensions seed violent street demonstrations, the most radical Khomeinists apparently believe dramatic attacks on U.S. forces -- such as the destruction of a U.S. Navy capital warship -- enhance their political position. Their illingness to run great risks demonstrates they are "the true believers." An extended confrontation with the United States also gives them the opportunity to portray their domestic opponents as traitors -- and then kill them. This week's round of Iranian "gunboat diplomacy" by five armed Revolutionary Guards' speedboats fulfills both political purposes. The best long-term U.S. strategy is political and economic -- encouraging an active domestic political opposition to Iran's clever religious leaders while whittling away at the clerics' graft-crammed Swiss bank accounts. This incremental strategy, however, takes time and perseverance.

Peacekeeping: American Mercenaries in Sudan Blackwater USA has made a deal to train security forces in southern Sudan. This region recently ended over twenty years of rebellion against the Arab dominated government of Sudan. Southern Sudan is primarily black, and non-Moslem. The peace deal gave the southerners a great deal of autonomy, and a cut of the revenue from Sudans recently opened oil fields. The oil is in the south, and threats to prevent production was a major incentive for the government to settle with the black rebels. Now that the southerners have money, they are spending some of it to improve their military capabilities. Since no country will send troops to train the southern militias, Blackwater was hired. 

Taiwan Voters to Choose Between Closer Ties With China, Local Identity Taiwan's 17 million voters go to the polls tomorrow for the first of two elections this quarter that could end eight years of gridlock and deepen the island's economic ties with China. The opposition Kuomintang, which favors closer mainland links, aims to retain control of parliament as a springboard to winning the presidency in March from the independence-leaning Democratic Progressive Party. Taiwan's economy has lagged behind China's since outgoing President Chen Shui-bian ended 51 years of KMT rule of the island in 2000. Ma Ying-jeou, the opposition's presidential candidate, has pledged to raise growth and cut unemployment by easing trade and investment restrictions with the mainland. Ma's KMT has kept control of Taiwan's Legislative Yuan since losing the presidency, and the division of power between the two parties has resulted in delays in implementing government policies from financial-sector consolidation to defense purchases. Analysts predict the opposition will win as much as two- thirds of the 113-seat parliament. China, U.S. Make Intervention Plans for North Korea Collapse, Reports Say, China's Trade Surplus Narrows; Slowing Exports Signal Economy May Cool,

  • A Spiritual Revival in Urban China A growing number of successful urban professionals in China are turning to Buddhism, drawn by the faith’s rejection of materialism in an increasingly money-oriented culture. Some of the new adherents in China tell BusinessWeek they began exploring Buddhism after feeling unfulfilled in their demanding professional and social lives. Having achieved success at work, some speak of looking for a deeper meaning in life. The interest in Buddhism mirrors the growing popularity of religious faith in general in China in recent years. Despite the government’s official atheism and its troubled relationship with the Dalai Lama, it has generally tolerated Buddhism’s resurgence. One consequence of Buddhism’s popularity has been the growth of faith-related commerce, including pricey, monastery-run hotels and religious DVDs. That has sparked a backlash of its own, as some traditionalists worry that Buddhism has become too trendy.

Chávez slows to a trot SMARTING from his first-ever electoral defeat last month, Hugo Chávez has begun the year by shifting his leftist revolution into lower gear. With five years of his presidential term still left, he has the luxury of reconsidering the method while retaining the same goals. So he has announced a period of what he calls “the three Rs”— the “revision, rectification and relaunching” of the revolution. With 22 out of the 24 states currently in chavista hands, the president has a lot to lose. To avoid another reverse he needs to address the problems that, by common consent, lay behind his defeat. The first is governmental incompetence. The revolution has failed to tackle a long list of problems, from crime to the cost of living. Another big problem is the demoralisation of Mr Chávez's own movement. The third pressing issue is the economy. Inflation soared to 22.5% last year, almost double the government's target. The new finance minister, Rafael Isea, admits that the government needs to stimulate food production, which has failed to match growing demand prompted by an oil-fuelled economic boom. After the referendum his predecessor promised a more “flexible” approach to price controls, which the private sector sees as the main cause of the shortages. What this means in practice has yet to be spelled out. A big shift towards more market-friendly policies is unlikely. Mr Isea is a former army lieutenant, with a limited background in economics. The new planning minister, Haiman El Troudi, is a youngish ideologue, as committed to central planning as his predecessor, the president's elderly economic guru, Jorge Giordani.

Hot Prospect for Oil’s Big League While some of the world’s largest oil producers, including Mexico and Iran, are struggling to remain exporters, Brazil is moving in the opposite direction. A huge underwater oil field discovered late last year has the potential to transform South America’s largest country into a sizable exporter and win it a seat at the table of the world’s oil cartel.The new oil, along with refining projects under way by Petrobras, the national oil company, could eventually make Brazil a larger exporter of gasoline as well, adding to supplies in the United States and other countries where it is all but impossible to build new refineries.Talk by the Brazilian government of tightening investment terms for the new offshore exploration frontier, however, could quickly curb international enthusiasm. Even if Petrobras asks for help from other major oil companies, developing Tupi will require solving thorny technical challenges and executing a project on a scale it has never tried before. The first commercial quantities of oil are not expected for some seven years.

Between fitna, fawda and the deep blue sea IT IS not easy to be an Arab these days. If you are old, the place where you live is likely to have changed so much that little seems friendly and familiar. If you are young, years of rote learning in dreary state schools did not prepare you well for this new world. In your own country you have few rights. Travel abroad and they take you for a terrorist. Even your leaders don't count for much in the wider world. Some are big on money, others on bombast, but few are inspiring or visionary. These are gross generalisations, of course. Huge differences persist among 300m-odd Arabic speakers and 22 countries of the Arab League. With oil prices touching record highs, some Arab economies are booming. The gulf between a Darfuri refugee and a Porsche-driving financier in Dubai is as great as between any two people on earth. Yet to travel through the Arab world right now is to experience a peculiar sameness of spirit. Particularly among people under 30, who make up the vast majority of Arabs, the mood is one of disgruntlement and doubt.Factors that contribute to the gloom include the discombobulating impact of one of the world's fastest population growth rates, failing public-education systems and the resilience of social traditions often ill-suited to the urban lifestyle that is now the Arab norm. But it is politics above all that shapes this generation's discontent.In the world at large, things have not looked good for the Arabs for a long time. The generation that emerged after the second world war came to believe in the inevitability of an Arab renaissance after centuries of domination by Ottoman Turks and European imperialists. Within this scheme of Arab progress, the problem of Palestine stuck out like a troublesome nail. Defeat in the 1967 war with Israel shattered many dreams. Yet even after Israel's victory Palestine remained a touchstone for Arabs everywhere. Sooner or later, it was felt, justice would be done.

African Farm Boom Defies Continent’s Grim Image There is an agricultural revival taking place in sub-Saharan Africa that defies the typically dire images of life on the continent that most Westerners see, writes G. Pascal Zachary in the Wilson Quarterly. The rural boom has been brought about by rising global prices for farm products and low labor and land costs. Exports of vegetables, fruits and flowers, largely from eastern and southern African, exceed $2 billion a year, up from virtually zero 25 years ago. In some areas, says Mr. Zachary, food production is growing faster than the population. The agricultural surge is changing the economic fortunes of millions, even though parts of the continent still are burdened by war, corruption, disease and climate change. As Africa’s cities have expanded, so has the demand for food production. On a smaller scale, an increasing number of city dwellers are returning to rural areas because they see better financial prospects there, often bringing new expertise with them.

Politics and Policies

'Change' For Our Children  Our children face a future of rising taxes, squeezed -- and perhaps falling -- public services, and aging -- perhaps deteriorating -- public infrastructure (roads, sewers, transit systems). Today's young workers and children are about to be engulfed by a massive income transfer from young to old that will perversely make it harder for them to afford their own children. No major candidate of either party proposes to do much about this, even though the facts are well-known. Spending for Social Security, Medicare and Medicaid -- three programs that go overwhelmingly to older Americans -- already represents more than 40 percent of federal spending. A new report from the Congressional Budget Office projects these programs could equal about 70 percent of the present budget by 2030. Without implausibly large budget deficits, the only way to preserve most other government programs would be huge tax increases (about 40 percent from today's levels). Avoiding the tax increases would require draconian cuts in other programs (about 60 percent). Workers and young families, not retirees, would bear the brunt of either higher taxes or degraded public services. Similar pressures, though less ferocious, exist at the state and local levels. Schools, police, libraries and parks will be squeezed by the need to pay benefits for retired government workers.

 

  • Economic anxieties for the middle-class Republican candidates could be in big trouble in 2008 if the sluggish U.S. economy doesn't turn around quickly as worries about jobs, housing, and energy prices are overtaking war concerns. Presidential elections often become a referendum on the economy, with the party of the White House incumbent assigned the credit or the blame for whatever happens in the economy. The official stats may say the economy grew at a 4.9% rate in the third quarter, but what's more important to voters is what will happen over the next 11 months. Most economists are forecasting much slower growth, perhaps just 1% in the current quarter. The odds of a recession next year have grown to more than 40%, according to some big Wall Street firms. Even the White House, which is much more optimistic than private forecasters, is projecting only average growth in 2008. A bigger problem for the Republicans is that voters aren't hopeful about the economy, and weren't even during the best days of expansion in 2004 and 2005.

What Are They Thinking?  In the past week, I have been in the car coming home late from work, with the presidential debates are on the radio. It is very discouraging to listen to what passes for economic literacy among the candidates. In reality, many candidates are espousing policies that are quite dangerous at worst, or simply misleading at best. Far too many in both parties tell a frustrated America what it wants to hear, rather than the economic reality. The Republicans have some of the worst offenders. So, today we will look at some economic reality. We tackle trade deficits, the dollar, taxes (the "Fair Tax"), how should we stimulate the economy as we slip into recession, and global trade. I think we will cover enough that I can just about guarantee to offend most of my readers at some point. But the main point I want you to take away from all this is that the simple one-line answers given at these debates might work to fool most of the voters and tell them what they want to hear, but they are not based in economic reality. While this is of more interest to US citizens, the principles apply across borders. So, let's jump right in.

A Primer on Fiscal Stimulus Although monetary policy should generally be the first line of defense against an economic slowdown, there are several circumstances in which fiscal stimulus can be helpful or even crucial. Two of these circumstances are potentially relevant today: one is if a sharp economic downturn appears imminent, and well-designed tax or spending changes could be implemented quickly; such fiscal stimulus could boost economic activity more quickly than monetary stimulus. The other circumstance is if, allowing for uncertainty about the effects of fiscal and monetary stimulus, a mixture of the two provides greater confidence about the economic outcome. However, it would be better not to have a fiscal stimulus at all than to have tax cuts or spending increases that are poorly timed, badly targeted, or permanently increase the budget deficit. A purported stimulus package with these characteristics could have small or non-existent short-run benefits and a substantial long-run cost.

 

No cures in  candidates' health proposals Those who hope the 2008 election will bring about meaningful health-care reform may find it's a case of politics and business as usual; experts say the plans being offered by the candidates bring little reform and don't address the soaring medical costs. It's still early in the race to the White House, but right now there doesn't appear to be much in the way of strong shifts on the horizon for what many consider the nation's highest domestic priority if current proposals from the handful of presidential hopefuls are not altered. "None [of the plans] revolutionize the system," said Roger Feldman, a professor at the University of Minnesota who specializes in health insurance. "They've kept all [of the plans] from [enacting] system redesign for the most part." The one idea that could cause the most upheaval -- mandatory coverage for all -- is meeting with tremendous skepticism and is given little chance of passage, at least on the national stage. Other proposals circulating now are short on pragmatic solutions, experts agree, and don't really get at the heart of the matter -- an out-of-control cost structure. Some are wondering whether candidates can really stump for drastic reforms in health care as they take in contributions from the health-care industry at a record-setting pace. Industry contributions are up by double digits from 2004 thus far.

Culture and Science

The Imjin War: Japan's Sixteenth-Century Invasion of Korea and the Attempt to Conquer China The 1592-98 Imjin War was sixteenth century Asia's biggest international conflict and a war that set the tone for relations between the three major combatants, Korea, China and Japan, for four centuries. Yet it is a conflict that remains virtually unknown in the West. The Imjin War sprang from the desire of Toyotomi Hideyoshi, the samurai warlord who reunited Japan after centuries of civil war, to conquer China and dominate Asia. Hideyoshi wanted to attack China not only because of his vast ego, but also to maintain control of his restless followers. The coalition through which he ruled Japan was based on the sharing of spoils, especially land, among the powerful samurai lords that comprised Hideyoshi's power base. By 1592, land was a scarce commodity in Japan, and Hideyoshi needed to assault his neighbors in order to appease his rapacious supporters. Unfortunately for the Koreans, the quickest way into China was straight up the Korean peninsula. Korea therefore became ground zero for Hideyoshi's marauding armies. The invasion which followed wrecked Korean society so thoroughly that parts of the capital of Seoul were still in ruins at the beginning of the 20th century.

We design buildings to be misused'  The importance of nooks, of cosiness, of the south-west London suburb of Croydon and of the British culture of do-it-yourself: a conversation with the people at architecture practice AOC (Agents of Change) is far removed from the run-of-the-mill dialogue with architects. It is also coolly refreshing. AOC's work is an eccentric mix of the intellectual and the everyday, its concerns both high- and low-brow. This is that rarity, a firm of genuinely young architects, the ages of the founders ranging between the late 20s and the early 30s. They are also something even rarer, a group of culturally engaged, serious and talented designers and polemicists with an unusually broad outlook focused not on the development of a house style but on a committed engagement with communities, clients and parts of the city. As they say on their website: "We can design you a home, write you a book or build you a city. Or design you a book, build you a home and write you a city". That is not, unfortunately, the way most architects speak. That one of the founders is also a town planner at Croydon council and another has a background as a translator gives some idea of quite how diverse their base really is.

GRATITUDE: the Gratitude Campaign

The Gratitude Campaign is an effort by Seatlite Scott Truitt to find a simple way to let our military folks apprecite what they're doing for. Irrespective of your own politics or how you feel about Iraq or the War on Terror in General they're putting it on the line for us. And doing their duty as they were asked to do their duty.

"Greater love hath no man than a mother cat dying to defend her kittens"

Robert A. Heinlein 

I doubt that many of us can appreciate what it's like to be downrange without being there, even if we know someone who's been in the real. But the dedication, hard work, risks and repeated going "In Harm's Way" our service folk are giving all that we can ask of them.

Here's the Web Address URL:

http://www.gratitudecampaign.org/index.php 

I also doubt that many realize the level of cohesion and performance displayed by these folks under repeated tours and constant stresses. Their performance is unusal, exemplary and with few precedents in history to the best of my knowledge.

So let us all set aside politics to express our appreciation for what our fellow citizens are doing with their citizenship in support of the Republic.

VAYA con DIOS to them all. 

January 08, 2008

Let's Play President: Evaluating the Candidates

Well the Iowa tsunami behind us, the second wave coming today/tonight and the campagin shaking out into a real test it looks like things are going to be wide open. Thank goodness. I'm afraid a Billary vs Rudeness contest didn't appeal to me very much while an Obama vs McCain has a lot of merit. Before explaining why let me put the question to you.

How do you think the candidates should be evaluated ?

Here's some thoughts and reflections in response. But first, the video at right will take you to one of the best Charlie Rose programs with David Brooks, Paul Begala and Adam Nagourney each giving their perspectives. Brooks lays out the big picture while Paul talks more about strategy and campaign management and Nagourney provides a reporters ground-level view of tactics. There's also an interesting finale on Obama's grassroots appeal. Well worth watching.

Now we're going to find out what Hillary and the rest are really made of. Before saying anything more about Billary let me re-ask what do we want from a candidate ?
 
The pundit's answer is that we want the slew of "right" policies so we get all these menus. That's all well and good, necessary even. But the reality nobody has the time to sort thru all these or the interest. The accusation is often made that citizens spend more time researching a new car than a candidate or their issues. Not only true, but understandable and actually sensible. I control my car choices and it's a major immediate impact on my life. I'm one of millions of voters who can't really influence the outcome.
 
So what do voters look for ? Several look for someone to express their fears or hopes or tell them the world will be a better place. Most, at the end of the day, IMHO, are looking to find a candidate who best expresses and captures what they themselves feel about how things are going and better provides a path forward. A vision if you will. This makes sense in a lot of ways - it's a rule-of-thumb filter that is affordable and workable, though without a little research it's often not as well grounded as it could or should be. For example Fred Thompson is a deeply experienced and insightful man who carefully considers his positions and conclusions, which are very nuanced in a wise way. Yet I wouldn't have reached that conclusion w/o watching him on Rose.
 
So the primary screening tool for most, and myself and most of us if we're honest about it, is someone who creates vision of where we want to go and something about how to get there.
 
The second major screen is that we want someone we think can tough it out. Someone authentic, who's positions are grounded in who and what they are and represent a serious commitment to their own values. And who has the character to stand their ground.
 
So at the end of the day there are three major categories of candidate evaluation IMHO:
1. Vision and Leadership
2. Character and Authenticity
3. Policies and real-world grasp
 
You/we can work thru each of the candidates of these fronts at some point. In fact we will one way or another. In collaboration with our fellow citizens. Oddly enough for all the complaints about Bush we aren't allowed perfect choices, just "the times we live in" as Gandalf put it. Given that I think my fellow citizens made the best choices possible in the last two elections because Gore and Kerry failed on the first two criteria.
 
For this election consider: If Presidential Candidates Were Stocks. It's both amusing, instructive and revealing. In it's own odd way as much as the more formal talking head punditry.
 
Just to make my own small contribution to your contemplations consider the worksheets below the line as a template. 

Leadership

Leadership has several different components and people differ but the ability to have a vision, grounded in reality and communicate it and motivate people behind it are critical. Another major component is integrity, values and character. We've tried to capture all that in the table at right. Another major aspect of leadership is the ability to put the right people in place, set goals and hold them accountable. This is execution ability and is often sorely lacking. You can see, at least for discussion purposes, our takes on Bush vs Kerry circa the '04 election. The way the table works is that each gets a score on a 0.0-4.0 school grading scale and that grade is weighted to a score which can then be added up. Notice that on Leadership I wasn't in love with either choice, particularly faulting Bush for his execution skills. But you can ignore all that and simply take the table as a starting point for evaluating the current crop. BtW - it just so happens we dug into what makes good leaders a little earlier: Following the Spirit: Leaders, Leadership and the "Wise" Course

Policies

Policies are a complex, mish-mashed spider's web of points and special interests and so on. So I tried to compress it down a bit into a structure that captured the major issues. We also need to make two other major....major distinctions. Policies are stated intent and at this stage are subject to vast revision once in the office and the realities are faced. Policies are also not politics or mechanism, two of the most painful of those realities. Each major policy has a cluster of interests that will need to be managed. They also need, all too often forgotten, to have the right kind of implementation mechanisms put in place. For the first time in a long-time that issue seems to be getting some lip-service. But as you evaluate the candidates you might be sensitive to which seems more aware to real-world ugliness. For example Hillary tends to think overall things are o.k. with a few patch-n-plug policy fixes. Obama on the other hand seems all too aware of real-world complexities. And nuance. 

 

Again this is just an example but you could use it to backcast. And you'll have to decide on your own weighting scheme. But looking back to the 90s you could use it to evaluate Bill Clinton's presidency. He went into office thinking the weight on Foreign Policy should be 0%. Despite all the evidence that every president needs to spend 50% of his time there without necessarily advertising it. Boy was he, and we as a result, ever surprised. That neglect set the table for a lot of the things we're wrestling with now. Similarly the 90s were great economically and Clinton made some good choices but Presidents influence but don't control the economy. In other words he largely got a free ride. That left Domestic Policy were all the key issues that're biting us badly now got their start and also had the clearest chance to be addressed early. Yet after the Healthcare debacle, entirely self-inflicted, King Stork (the active hunter) turned into King Log (the passive roll with things) and then with all the unpleasantness of Monica a nearly rotten log. For the most gifted politician of his generation Slick Willie sure squandered all his and our chances at getting ahead of the game. And he started out so well. Even more startlingly if you watch the Rose interview many of those assessments are now part of his new worldview.

And if you think a pragmatic centrist policy after Reagan's reforms wasn't possible consider the fortunate history of Britain which went from Thatcher, who created and led the revolution, to Major who cleaned it up and Blair who softened and extended it after people got tired of the Tories. Clinton set out to do just that but lost it to the old shibboleths. Lucky Brits. 

January 07, 2008

WRFest 6Jan08: We Can See Clearly Now, Can We ?

Well as part of the process of real-world re-entry let's keep catching up with the intresting stories of the last week or so. As usual compressed excerpts for your skimming pleasure are on the continuation with the links that'll take you the original. This week the bulk are in either International or Politics and Policies. But all of these stores or our earlier readfests or the holiday series all start with several central premises. The primary one being to try and see the world as it is rather than as we mistakenly believe it to be. Barry Ritholz put up a fascinating post comparing the collective judgments of Mr. Market to someone working their way thru the Kubler-Ross stages of denial.

Values & Attitudes

5 Stages of Market Grief One of the most intriguing things I find about the market is how the collective psyche sometimes resembles a singular entity. In particular, I have been fascinated by the commentary we have heard from some quarters regarding deep and obvious flaws in the present macro environment. I spent a lot of time over the holidays  (skeptically) reading commentary from various pundits. There was something strangely familiar in the absurdly erroneous observations, but I couldn't place my finger on what it was. Until Friday. I don't know who or what actually triggered my memory, but it finally dawned on me what the parallel was: The Kübler-Ross model of 5 stages of grief. For those of you who never took any psych in college, that is the process by which Humans deal with grief and tragedy. It was introduced by Elisabeth Kübler-Ross in her 1969 book "On Death and Dying". This has become well-known as the "Five Stages of Grief". Reviewing recent market commentary, it appears that the investors, traders and pundits alike have been working their way through each of these 5 stages.

 He pretty well encapsulates our perspective as well as capturing the zeitgeist on the Street. Given the centrality of the markets and the economy to our ability to deal with all the other issues the slow adaptation processes are a little concerning. What's more concerning is the equal slowness and lack of adaptation in facing the larger issues discussed in the links. Two areas in particular strike me as worth thinking about.

One is the mounting crisis in Pakistan which is well on its' way to being the sort of "Black Swan", or likely but un-expected event that was predictable but everyone believed wouldn't happen. In fact the difficulties in Pakistan have been visible for years and are inherent in the social structure. The problem is in our substituting wishful thinking for understanding. In fact it looks to me as if we're about to repeat the same errors we made with the Shah in Iran - imposing our domestic models of what's right on a society without the same deep cultural foundations required for a pluralistic and democratic society. And look where that got us.

On the other side there was a tsunamic shift in domestic politics when the front-running candidates of un-inspired business-as-usual and telling people what they want to hear got trimmed up badly by the candidates speaking more to what people think they need to hear. Telling people the truth is actually o.k. The trick is not to whine about "our national malaise". For those of you who don't recognize it that Pres. Peanut speaking. The job of a leader, or prospective leader, is not to be the  chief whiner. Nor the chief cheerleader.

It is to develop a clear vision of the future, based in reality and communicate it to people so they get it. It is also then to put into place workable and actionalbe real-world programs that can execute against that vision. And finally it's to be the chief magistrate who holds the doers accountable for results.

If you want to hear the best short, pithy definition try this conversation with Richard Armitage on Charlie Rose - and learn a whole bunch about foreign policy in the bargain !

Who knows ? We may be getting luckier in that regard than it looked like we were going to be. Time will tell. 

 

Int’l Affairs

War -- or Crime -- in Cyberspace  In the computer age -- and 2008 is definitely in the computer age -- the difference between an act of war and crime is often a matter of interpretation as well as degree. Attack a nation's highways and railroads, and you've attacked transportation infrastructure. You've also committed an obvious, recognized act of war. An electronic attack doesn't leave craters or bleeding human casualties, at least not in the same overt sense of an assault with artillery and bombs. However, the economic costs can be much larger than a classic barrage or bombing campaign. In late April of this year, the world got a look at the economic and psychological effects of a "massed" cyber attack -- a sophisticated, sustained and coordinated "hack" of an entire country. Estonia was the victim. Estonia is a "wired society." The country has made Internet access an economic and political priority. Over a period of weeks (April through mid-May), Estonia suffered from what The Washington Post described as "massive and coordinated cyber attacks on Websites of the government, banks, telecommunications companies, Internet service providers and news organizations."  Bank accounts were "probed," email services shut down. Estonia's minister of defense called the attacks "organized attacks on basic modern infrastructures." According to press reports, Estonia claimed that the attacks originated at the Internet addresses of "state agencies in Russia." Russia denied the charge, attributing the attacks to criminals and vandals. On Sept. 5, 2007, StrategyPage.com called China "Computer Crime Central." The StrategyPage report focused on "poisoned Websites" that try to steal financial data (like bank account login information). StrategyPage argued that some Internet criminal activity appeared to link to "attacks on Western military and government networks."

Oil's Surge Reshapes the World The surging price of oil, from just over $10 a barrel a decade ago to $100 yesterday, is altering the wealth and influence of nations and industries around the world. These power shifts will only widen if prices keep climbing, as many analysts predict. Costly oil already is forcing sweeping changes in the airline and auto sectors. It is intensifying the politics of climate change and adding urgency to the search both for fresh sources of crude and for oil alternatives once deemed fringe. The long oil-price boom is posing wrenching challenges for the world's poorest nations, while enriching and emboldening producers in the Middle East, Russia and Venezuela. Their increasing muscle has a flip side: a decline of U.S. clout in many parts of the world. Oil's run-up is bringing the most startling changes of all to the Middle East. Big producers like Saudi Arabia and the United Arab Emirates are using their billions in profits to build their economies with roads, schools, airports and entire new cities. More than from their bank accounts, national oil companies' strength stems from their control of resources. Exxon Mobil, with a market capitalization of around $500 billion, is one of the largest and most successful publicly traded companies ever. But there are 12 state-controlled oil companies, such as Saudi Aramco and PetroChina Co., that control more oil reserves. Driving this power shift is geology. Major new finds in North America and Europe have been rare for two decades

Rise of South-South Trade The big government-controlled investment pools weren't just talking tough. Sure, the U.S. remains the world's largest and most attractive economy. But the past couple of decades have seen the rise of trade and investment not only between the rich countries of the North and developing economies of the South, but between South and South. Turned away by the U.S., Dubai Ports World is expanding in China, India, Peru and Vietnam. Saudi Arabia's state-owned oil company is investing in refineries in China's Fujian and Shandong provinces. Industrial & Commercial Bank of China last year bought a 20% stake in South Africa's Standard Bank. India's sprawling Tata Group has African investments ranging from the Taj Pamodzi hotel in Zambia, to a railroad-car and steel-fabrication plant in Mozambique. A.T. Kearney says flows of money, investment and trade are creating a multicontinental market spanning the Indian Ocean. Showing a consultant's affection for catchphrases, it has dubbed this market Chimea -- Chinese and Indian know-how, money and thirst for resources ("chi"), plus Middle Eastern money and oil ("me"), plus African raw materials and opportunity ("a") A central question about this year's global economy is whether emerging markets -- both China and others -- can keep growing as they have been as the U.S. and Europe slow. The answer turns on at least three factors: whether demand for commodities abates and hurts economies dependent on raw-material exports, whether turmoil in financial markets of the North disrupts lending to borrowers in the South, and whether there is enough self-sustaining demand among emerging-market economies to stoke their growth. But the importance of the explosion of South-South trade and investment goes far beyond this year's outlook. It could be the opening of a new epoch of globalization -- one in which the global economic might of big U.S. and European companies is challenged like never before, one in which the remarkable success of China and other Asian economies in lifting their people out of poverty is spread -- finally -- to other poor continents.

China Flexes Its Muscles Beijing is no longer content to 'bide time,' which could spell trouble for the U.S. The immediate causes of these rebuffs may be American arms sales to Taiwan, which China regards as sovereign territory, and the award of a congressional medal to the Dalai Lama, with whom Beijing has had a multi-decade spat. But so many turndowns suggest the decisions were made at the highest levels of the Chinese central government -- and at a time when senior leaders are reorienting the country's foreign policy. Washington's relations with Beijing, in short, appear headed for increasing disagreement and tension. Current President Hu Jintao has shifted China in a new direction. Like Mr. Jiang, he believes that the country should assert itself. But unlike his predecessor, he seems to think that China should actively work to restructure the international system to be more to Beijing's liking. In short, the current leader appears to see his country mostly working against the U.S. The shape of China's grand strategy became apparent after a series of meetings in Beijing in the second half of 2006. Mr. Hu's reorientation of foreign policy is a consequence of his increasing reliance on the People's Liberation Army as a political base inside the Party. Since the middle of 2004, he stepped up efforts to court senior generals for support of his efforts to assert supremacy over Jiang Zemin, who has been clinging to power and blocking some of his initiatives.

Dealing With the Dragon It’s a very good bet that the biggest foreign policy issues for the next president will involve the Far East rather than the Middle East. Almost all the foreign policy talk in this presidential campaign has been motivated, one way or another, by 9/11 and the war in Iraq. Yet it’s a very good bet that the biggest foreign policy issues for the next president will involve the Far East rather than the Middle East. In particular, the crucial questions are likely to involve the consequences of China’s economic growth. Turn to any of several major concerns now facing America, and in each case it’s startling how large a role China plays. The truth is that China is too big to be bullied, and the Chinese are too cynical to be charmed. But while they are our competitors in important respects, they’re not our enemies, and they can be dealt with. A lot of Americans, when they think about the next president’s foreign-policy qualifications, seem to be looking for a hero — someone who will stand tall against terrorists, or transform the world with his optimism. But what they should be looking for is something more prosaic — a good negotiator, someone who can bargain effectively with some very tough customers and get the deals we need on energy, currency policy and carbon credits.

Liberty Theology The Church, socialism and the loss of freedom. Catholic Church bishops, priests and other Church leaders in Latin America were once a reliable ally of the left, owing to the influence of "liberation theology," which tries to link the Gospel to the socialist cause. Today the Church is coming to recognize the link between socialism and the loss of freedom, and a shift in thinking is taking place. In a region that is more than 90% Catholic, this change might have enormous implications. A Church that emphasizes liberty could play a role in Latin America similar to that which it played in Eastern Europe in the 1980s, as a counterweight in defense of freedom during a time of rising despotism.

  • Mexican Army Goes Through Changes The Mexican army is going through some tough times. A decade ago, an independence day parade featured lots of showy stuff, including guys doing gymnastics, jumping through flaming rings and such.  These days, when the troops march in a parade, the army sends a much grimmer message.  Troops dressed in various kinds of camouflage (jungle, swamp, desert, etc), various kinds of special ops people. It's the drug war, more than the Chiapas thing and other small leftist movements.  Sending the army into the war on drugs has forced the army to change. New tactics, new weapons and new leadership styles.

Down at Downing Street Maybe the Brits didn't hate Blair because of the war after all. Normally, when politicians make predictions, events make them look foolish. But there's been one forecast from a politician in the past 12 months which has proved the prediction of the year. At the beginning of 2007, David Miliband was reflecting on the low ratings of then Prime Minister Tony Blair. He suggested that unpopularity was just a feature of incumbency. He predicted that within a year, people would be saying, "Wouldn't it be great to have that Blair back because we can't stand that Gordon Brown." Less than a year later, Mr. Miliband is foreign secretary in Gordon Brown's government. And their administration is so mired in unpopularity that it's actually below the level in the opinion polls Mr. Blair touched at his nadir. What makes this all the more ironic is the casual assumption of so many in the Labour Party that a simple change in personnel at the top, and a new direction in foreign policy, would revive their fortunes.

Losing an Edge, Japanese Envy India’s Schools Japan is suffering a crisis of confidence these days about its ability to compete with its emerging Asian rivals, China and India. But even in this fad-obsessed nation, one result was never expected: a growing craze for Indian education. Despite an improved economy, many Japanese are feeling a sense of insecurity about the nation’s schools, which once turned out students who consistently ranked at the top of international tests. That is no longer true, which is why many people here are looking for lessons from India, the country the Japanese see as the world’s ascendant education superpower. Viewing another Asian country as a model in education, or almost anything else, would have been unheard-of just a few years ago, say education experts and historians. Much of Japan has long looked down on the rest of Asia, priding itself on being the region’s most advanced nation. Indeed, Japan has dominated the continent for more than a century, first as an imperial power and more recently as the first Asian economy to achieve Western levels of economic development. But in the last few years, Japan has grown increasingly insecure, gripped by fear that it is being overshadowed by India and China, which are rapidly gaining in economic weight and sophistication. The government here has tried to preserve Japan’s technological lead and strengthen its military. But the Japanese have been forced to shed their traditional indifference to the region. Grudgingly, Japan is starting to respect its neighbors.

Why the Surge Worked Over a year ago, a new plan was announced for improving security in Iraq.  The plan was simply to increase U.S. presence in the country by 30,000 personnel with a three-fold contribution by Iraqi forces.  Other Coalition nations provided additional personnel for the plan.  The center of this plan would be Iraq's center of gravity, Baghdad, which is the political center and largest city in the country.  The sectarian "fault line" runs throughout out the city.  Now, over a year later, the Surge plan has been successful.  Violence is down 60 percent nationwide.  Al Qaeda in Iraq (AQI) has been expelled from Baghdad and Anbar Province and is currently on the run.  Iraqi Ministry of the Interior (Waziriat al Dakhaliyah) has recently stated that AQI is 75 percent destroyed.  Both the reduction in violence levels and AQI losses can be reinforced through Open Source Intelligence (OSINT). Critics insisted that the plan would fail.  They declared that U.S. forces in Iraq were already ineffective because the situation was beyond repair.  The increase of U.S. forces would be seen as more as "occupiers" and would "create more insurgents".  Critics also insisted that the Surge would destroy the already strained US military.  Predictions by critics were a bust. The question then becomes, "Why did the Surge work?" 

INDIA-PAKISTAN: Who Benefits From Bhutto's Death? The rioting in Pakistan, following the assassination of presidential candidate Benazir Bhutto, has died down, leaving about sixty dead. India has taken its border troops off alert, as there has been no flood of refugees. The Pakistani elections, scheduled for January 8th,  have been delayed a month. The government has photos of the assassins, and is offering a huge reward ($164,000) for information about their identity. Officially, the Taliban and al Qaeda deny carrying out the Bhutto killing, but the government has many convincing radio intercepts that say otherwise, and the terrorists are openly pleased about the death of a politician who called for more effective counter-terror operations. While many blame the government for killing Bhutto, the terrorists had more to gain by having her gone.  Bhutto was the military government's easy way out of their increasingly unpopular dictatorship. The other major candidate for president, Nawaz Sharif, has a grudge against the military (which overthrew him), while Bhutto has been more accommodating.

  • Bhutto’s Deadly Legacy There is, however, an important difference between the two deaths: while Mr. Gandhi was assassinated by Sri Lankan Hindu extremists because of his policy of confronting them, Ms. Bhutto was apparently the victim of Islamist militant groups that she allowed to flourish under her administrations in the 1980s and 1990s. It was under Ms. Bhutto’s watch that the Pakistani intelligence agency, Inter-Services Intelligence, first installed the Taliban in Afghanistan. It was also at that time that hundreds of young Islamic militants were recruited from the madrassas to do the agency’s dirty work in Indian Kashmir. It seems that, like some terrorist equivalent of Frankenstein’s monster, the extremists turned on both the person and the state that had helped bring them into being. While it is true that the recruitment of jihadists had started before she took office and that Ms. Bhutto was insufficiently strong — or competent — to have had full control over either the intelligence services or the Pakistani Army when she was in office, it is equally naïve to believe she had no influence over her country’s foreign policy toward its two most important neighbors, India and Afghanistan.

Perversity In Palestine Most Palestinians admit that their "Second Intifada (struggle)" has been a failure. Begun in 2000, as a ploy to obtain better peace terms with the Israelis, it led to nearly 6,000 deaths since then (80 percent of them Palestinians). But Palestinian extremists, like Hamas, refuse to give up the struggle, and vow to fight to the last Palestinian. Most Palestinians are now willing to resume negotiations (interrupted in 2000 by the Intifada), but a substantial majority of Palestinians want to fight on. The majority of Palestinians would prefer that Israel simply be destroyed. Because of the Intifada, far fewer Israelis are willing to give up a lot of make peace with the Palestinians. For over sixty years, the Palestinians have been their own worst enemies, and other Arab nations are taking note of that. The Arab world wants the Palestinians to take whatever deal they can get and settle down, because there is not a lot of support in the Arab world for much else. Based on past performance, the Palestinians will likely ignore this advice and the new realities. Palestinians Who Prefer Israel - Palestinians have a hidden history of appreciating Israel that contrasts with their better-known narrative of vilification and irredentism.

Politics and Policies

Democrats: More Than Health Care Perhaps you have heard that Hillary Clinton and Barack Obama have come up with different health care plans. Hers would require every American to own health insurance. His would not. But there really are some other important differences between the candidates. When you look at their policies as a whole, you see that Mrs. Clinton and Mr. Obama have actually laid out two competing economic philosophies. The fight over health insurance is just one part of their disagreement. Compared with all the other candidates — Democrat and Republican — Mrs. Clinton and Mr. Obama occupy roughly the same place on the ideological spectrum. They’re both somewhat to the right of John Edwards, who favors a more muscular brand of government intervention to help the middle class. And they are well to the left of every Republican. But the differences between Mrs. Clinton and Mr. Obama can’t be neatly captured with the standard language of right and left. The easiest way to describe Senator Clinton’s philosophy is to say that she believes in the promise of narrowly tailored government policies, like focused tax cuts. She has more faith that government can do what it sets out to do, which is a traditionally liberal view. Yet she also subscribes to the conservative idea that people respond rationally to financial incentives. Senator Obama’s ideas, on the other hand, draw heavily on behavioral economics, a left-leaning academic movement that has challenged traditional neoclassical economics over the last few decades. Behavioral economists consider an abiding faith in rationality to be wishful thinking. To Mr. Obama, a simpler program — one less likely to confuse people — is often a smarter program.

The Pigou Club watches the debates For the passages I put in bold, Bill Richardson and Barack Obama deserve special commendation, for opposite reasons. As a former energy secretary during the Clinton administration, Richardson has presumably studied these issues. But here he demonstrates extraordinary ignorance (or perhaps extraordinary disingenuousness) about the economic impact of cap-and-trade systems. By contrast, Obama shows extraordinary clarity and honesty about the effects of the policy he is proposing. The economics is straightforward and uncontroversial. Both carbon taxes and cap-and-trade systems put a price on carbon, raising the cost of producing carbon-intensive products such as gasoline. In both cases, this cost will be passed on to consumers. The government can, however, raise revenue through a carbon tax or auction and use that revenue to reduce other taxes and help offset the adverse income effect. In case you are curious, Hillary Clinton is the next speaker on this question, but she does not weigh in on the particular issue of carbon taxes vs cap-and-trade. Instead, she offers some typical vacuous blather about requiring utility companies to help us all become more energy efficient. I think of this as "magic-wand economics." Like your fairy godmother, the President can wave a magic wand and make your problems disappear.

Epochal Battle Set When Iowa voters walk into their state's caucuses tomorrow night, they will be kicking off a milestone campaign year that promises a new political course for America. For the first time in 80 years, no incumbent president or vice president from either party is seeking the White House, creating an unusually unsettled campaign with no obvious front-runner. Power in Congress is divided so evenly between the two parties that neither has really been in control since the 2006 elections. Now, in the wide-open 2008 general election, voters will declare whom they want to run the executive and legislative branches. Americans will make that choice at a time when they are distinctly uneasy. Record numbers of voters are choosing to declare themselves politically independent -- and thus open to moving either left or right. Both the Republican president and the Democratic Congress are receiving historically low public-approval ratings, another sign of voter unease. More broadly, the Wall Street Journal/NBC News poll has in recent months found the nation to be in the midst of the most prolonged period of public dissatisfaction in 15 years, as measured by the share of voters who say the country is "on the wrong track."

The Two Earthquakes This is a huge moment. It’s one of those times when a movement that seemed ethereal and idealistic became a reality and took on political substance. Iowa won’t settle the race, but the rest of the primary season is going to be colored by the glow of this result. Whatever their political affiliations, Americans are going to feel good about the Obama victory, which is a story of youth, possibility and unity through diversity — the primordial themes of the American experience. Obama has achieved something remarkable. At first blush, his speeches are abstract, secular sermons of personal uplift — filled with disquisitions on the nature of hope and the contours of change. He talks about erasing old categories like red and blue (and implicitly, black and white) and replacing them with new categories, of which the most important are new and old. He seems at first more preoccupied with changing thinking than changing legislation. Obama is changing the tone of American liberalism, and maybe American politics, too. On the Republican side, my message is: Be not afraid. Some people are going to tell you that Mike Huckabee’s victory last night in Iowa represents a triumph for the creationist crusaders. Wrong. Huckabee won because he tapped into realities that other Republicans have been slow to recognize. First, evangelicals have changed. Huckabee is the first ironic evangelical on the national stage. He’s funny, campy (see his Chuck Norris fixation) and he’s not at war with modern culture. Second, Huckabee understands much better than Mitt Romney that we have a crisis of authority in this country. People have lost faith in their leaders’ ability to respond to problems.

 

David Brooks: Road to Nowhere The most impressive thing about Mitt Romney is his clarity of mind. When he set out to pursue his party’s nomination, he studied the contours of the Republican coalition and molded himself to its forms. Earnestly and methodically, he has appealed to each of the major constituency groups. For national security conservatives, he vowed to double the size of the prison at Guantánamo Bay. For social conservatives, he embraced a culture war against the faithless. For immigration skeptics, he swung so far right he earned the endorsement of Tom Tancredo. He has spent roughly $80 million, including an estimated $17 million of his own money, hiring consultants, blanketing the airwaves and building an organization that is unmatched on the Republican side. And he has turned himself into the party’s fusion candidate. Some of his rivals are stronger among social conservatives. Others are stronger among security conservatives, but no candidate has a foot in all camps the way Romney does. No candidate offends so few, or is the acceptable choice of so many. And that is why Romney is at the fulcrum of the Republican race. He’s looking strong in Iowa and is the only candidate who can afford to lose an important state and still win the nomination. And yet as any true conservative can tell you, the sort of rational planning Mitt Romney embodies never works. The world is too complicated and human reason too limited. The PowerPoint mentality always fails to anticipate something. It always yields unintended consequences.

January 06, 2008

WRFest 30Dec07: World, Politics & Policies

Well it's the time to return to "normalcy", whatever that might be, after the holidays. We did take the opportunity explore a bunch of interesting byways and highways in a series of posts on the Christmas "spirit" and how that might be better reflected in broad, macro terms. In particular in terms of what kinds of a world system would best serve us all, the critical role of the right kind of leadership in the right time and place and what constitutues good citizenship in a republic. All of which we argue represent real-world characteristics of the best of the Christmans Spirit carried over into daily practices, as opposed to being reserved to sincere but not supported annual celebrations.

Below the continuation you'll find links to a selection of readings on world affairs, poitics, economics, policies, etc. to return us to the mundane and test those theories. Bon Appetit' 

Values & Attitudes

Too Modest for TV A different kind of generation gap. Earlier this year, I got the call that every author pines for. Wendi Wan, a producer from the "Dr. Phil" show, alerted my publisher that the daytime pop psychologist wanted to design a program around my new book, "Girls Gone Mild: Young Women Reclaim Self-Respect and Find It's Not Bad to Be Good." They would need copies straightaway, and soon I was subjected to an hour-long interrogation. To my great relief, I passed the inquest, and my appearance on "Dr. Phil" was confirmed. Recently, the episode "Mild vs. Wild" finally aired. As it turned out, all the teenage role models that I had recommended were nowhere to be seen. The show was instead presented as a war between "wild" young'uns who wanted to look provocative and their "out of touch" parents. But by omitting all the younger, more wholesome role models from his show, Dr. Phil unwittingly revealed how much distortion is required to prop up this media-stoked controversy. The dichotomy between prudish elders and wild young'uns turns out to be, on closer examination, largely adult dogma. Yes, many young people are rebelling -- but today they rebel, increasingly, by upholding high standards in the face of the low ones promoted around them. These are the voices you won't hear on "Dr. Phil." But, hey, he's the expert. Ms. Shalit blogs at www.girlsgonemild.com.

Int’l Affairs

Why We're in the Gulf Without a Pax Americana, the world would be neither safe nor happy. Few subjects matter as much as oil, the Persian Gulf and American foreign policy. But few subjects are less well understood. Even relatively sophisticated observers will attribute American interest in the Persian Gulf to Uncle Sam's insatiable thirst for crude, combined with an effort to gain lucrative contracts for American oil firms. The U.S. today depends on the Middle East for only a small portion of its energy supplies. Still the world's third largest oil producer and holding large coal reserves, America is significantly less dependent on foreign energy sources than the other great economies. While U.S. import needs are projected to grow significantly, U.S. dependence on Persian Gulf energy is not, thanks largely to expected production increases in the Western Hemisphere and sub-Saharan Africa. U.S. energy imports from the Persian Gulf are expected to remain below 20% of total consumption. For the past few centuries, a global economic and political system has been slowly taking shape under first British and then American leadership. As a vital element of that system, the leading global power -- with help from allies and other parties -- maintains the security of world trade over the seas and air while also ensuring that international economic transactions take place in an orderly way. Thanks to the American umbrella, Germany, Japan, China, Korea and India do not need to maintain the military strength to project forces into the Middle East to defend their access to energy. For this system to work, the Americans must prevent any power from dominating the Persian Gulf while retaining the ability to protect the safe passage of ships through its waters. The end of America's ability to safeguard the Gulf and the trade routes around it would be enormously damaging -- and not just to us. Defense budgets would grow dramatically in every major power center, and Middle Eastern politics would be further destabilized, as every country sought political influence in Middle Eastern countries to ensure access to oil in the resulting free for all. The potential for conflict and chaos is real.

Sovereign Funds Offer U.S. Big Gains, Small Risk Given the breadth of financial stress, it is likely that even more sovereign wealth fund money is going to flow into key U.S. firms in coming months. The potential cash flow is enormous. Today, the funds manage an estimated $2 trillion to $3 trillion. To offer some perspective, that's significantly more than all the world's hedge funds combined. Some financial analysts estimate that the total quantity of assets managed might grow to $12 trillion during the next eight years. It is startling when one pauses and considers the scale of these enterprises. The world's largest sovereign wealth fund is the Abu Dhabi Investment Authority, which manages $625 billion, mostly coming from windfall oil profits in the United Arab Emirates. Purchases by these funds are different from those by normal shareholders for a simple reason. Governments might not always care about maximizing profit. They have strategic interests as well. When foreign governments are involved, the downside scenarios can be chilling. An enemy of the U.S. could, if it had sufficient control of our financial institutions, use that power to gain intelligence about the activities of private American citizens. It might even use its influence to attack the U.S. economy during a time of conflict. Fortunately, the activities of foreign governments to date are anything but ominous. Indeed, many analysts liken sovereign wealth funds to the endowment funds held by private U.S. universities. But keeping that image is crucial if the funds are to stay in the game. Accordingly, Congress needs to think more carefully about legislation that can ensure the funds and other government investments are tame. Fortunately, a simple solution presents itself. If the risk of foreign-government involvement is that the government might pursue a strategy that's not in the interest of profit- maximizing for shareholders, then one need only limit the influence of the government shareholders. There's an easy way to do that: simply pass a law that prohibits governments from exercising the voting rights of shares they purchase.

Little Island That Could Temasek's talks with Merrill over a $5 billion infusion shows how the tiny city-state is trying to confirm its reputation as a global financial heavyweight by pumping its money into ailing Wall Street firms. The tiny city-state of Singapore is trying to confirm its reputation as a global financial heavyweight by pumping its money into ailing Wall Street firms. The latest indication: News that state-owned investment company Temasek Holdings Pte. Ltd. is in advanced talks to invest as much as $5 billion in Merrill Lynch & Co. Temasek's investment would be that fund's first major foray into U.S. assets. But a sister fund has already been shopping: The Government of Singapore Investment Corp., about two weeks ago said it will team up with an unnamed Middle Eastern investor to inject $11.5 billion into Swiss bank UBS AG, with the Singaporeans putting up around $9.6 billion of the total. Significantly, many investments like these are in the form of minority stakes, rather than controlling stakes, presumably to diminish possible political fallout. Temasek itself learned a lesson about political risk recently after buying control of a Thai telecommunications company from the family of former Prime Minister Thaksin Shinawatra. Under terms of that deal, Mr. Thaksin's family avoided paying taxes on its profit. Public outrage over the incident in Thailand fueled antigovernment protests that ultimately led to Mr. Thaksin's ouster. In addition, with its investment in UBS -- one of the biggest managers of wealth globally -- GIC appears to push Singapore closer to its goal of establishing itself as a private banking hub. The investments are part of a longstanding strategy by Singapore -- a speck on the map near Malaysia, Thailand and Indonesia -- to build its reputation as a global financial center as it struggles for influence with emerging regional powerhouses like China and India. The island-state has long tried to woo regional financiers from Hong Kong by touting the city-state's cleaner air and more affordable housing.

Oil-price prognosticators, bruised by volatility in the oil patch, have reached a rough consensus on next year: Oil will be even costlier, even if the economy cools. Prices are likely to be up at the pump, too. Consumers are likely to pay a lot more at the pump, too. The Energy Department predicts that far higher average oil prices will force gasoline prices to even out at $3.11 next year, up 10% from the average price of $2.81 this year. World crude prices have long tracked the thirst for oil in the U.S., which consumes about a quarter of the world's oil output. But recent months have shown how decoupled the oil market is becoming from the economic ups and downs of the world's largest energy consumer. Even amid fears that the U.S. could slip into recession next year, world-wide consumption is expected to strengthen, driven mostly by more demand from Asia as well as from Middle Eastern economies awash in oil revenue. That, of course, will further tighten global supplies.

Cuban Revolution One blog post at a time, Yoani Sánchez paints an unflinching, and deeply personal, portrait of the Cuban experience. She does so not from the cozy confines of Miami, but through cloak-and-dagger means inside Havana. Ms. Sánchez has done this cloak-and-dagger routine since April, publishing essays that capture the privation, irony and even humor of Cuba's tropical Communism -- "Stalinism with conga drums," as she and her husband jokingly call it. From writing about the book fair that blacklisted her favorite authors to the schoolyard where parents smuggle food to their hungry children, Ms. Sánchez paints an unflinching, and deeply personal, portrait of the Cuban experience.

While there are plenty of bloggers who dish out harsh opinions on Mr. Castro, most do so from the cozy confines of Miami. Ms. Sánchez is one of the few who do so from Havana. Ms. Sánchez's writing is direct. On Oct. 5, she wrote about Mr. Castro's regular newspaper editorials, which usually focus on international politics rather than the problems of Cuba. "The latest reflections of Fidel Castro have ended my patience," she wrote. "To try to evade or distance oneself from our problems and theorize about things that occurred thousands of kilometers away, or many years ago, is to multiply by zero the demands of a population that is tired, disenchanted and in need today of measures that alleviate its precariousness."

The fact that Ms. Sánchez has avoided jail is a source of great intrigue for global Cuba watchers and the Cuban exile community in Miami. Some experts say it signals new tolerance by Raúl Castro, who has taken over day-to-day leadership from his brother because of Fidel's deteriorating health. Since taking temporary power in July 2006, Raúl Castro has called for an "open debate" on the country's economic policies, and promised agricultural reforms to bolster the food supply. Cuba experts debate whether Raúl's promises suggest a true re-examination of Cuba's economic model, or are simply rhetoric. Others, especially the exile community, can't quite believe Ms. Sánchez gets away with what she does. They wonder if she is an unwitting dupe -- or a complicit agent -- in a campaign to make Raúl Castro appear more tolerant as he seeks greater foreign aid. Excerpts: 'There Is No Way Back'. Video Clip.

Fostering a Chinese Middle Class Chinese planners envision the middle class constituting more than half of the nation's population by 2020, accompanied by the elimination of "absolute poverty." The goal is part of quadrupling China's per capita gross domestic product by 2020, said Zheng Xinli, vice minister of the Communist Party's Central Policy Research Office. A bigger middle class will also challenge the government to provide greater social security and services and better education systems, Mr. Zheng said at a news conference. "A growing middle-income population will ensure that more people will benefit from reform so that our reform will be endorsed and supported by more people," he said. China's economic development so far has come at excessive costs to its natural resources, Mr. Zheng said, adding that the economy was inefficient and polluting the environment. The priority now is to move toward more sophisticated industries that use more science and technology and to foster entrepreneurs, he said. The head of the government's top economic body was quoted Wednesday in the China Daily newspaper as saying the government had pressed provincial and local officials to curb investment and new energy-intensive projects in order to rein in growth and inflation. Since opening up its economy in 1978 and moving toward a market economy, China has lifted about 400 million people out of poverty, according to the World Bank. But this has led to wide income inequalities that the Communist Party is trying to address through its notion of a "harmonious society" that has a more even distribution of the benefits of recent decades of speedy economic growth.

 

Attack Shows How Caste System Lives On Dalits, the former "untouchables" at the bottom of India's caste ladder, are improving their lot amid an economic boom. But the murder of a low-caste family shows how the rising aspirations of the most downtrodden can exacerbate age-old tensions. The killings and their fallout show how the rising aspirations of India's most downtrodden can exacerbate age-old social tensions. A prolonged economic boom has improved the lot of millions of the nation's poorest, including Dalits. Still, despite a ban on "untouchability" and decades of affirmative-action aid to Dalits, the rigid stratification imposed by the Hindu caste system is proving resistant to change, sometimes violently so. In parts of rural India, in particular, the upward mobility of some is causing tension along caste fault lines.

 

Japan generated 9.1% of the world's economic output in 2006, its smallest share in more than 25 years.  The estimate by the Cabinet Office highlights how years of sluggish growth due to falling prices and other economic troubles has dented the country's global economic portfolio. Japan's contribution last year to the world's nominal gross domestic product -- the total output of goods and services, not adjusted for inflation -- is the lowest since the Cabinet Office started releasing the data in 1980. The 9.1% share was just more than half of the 17.9% the world's second-largest economy achieved in 1994. The latest figure also marked the sixth straight year of decline. Japan's output accounted for 10.2% in 2005, 11.1% in 2004 and 11.5% in 2003, the Cabinet Office said. "Trapped in deflation, Japan has seen its weight in the world's economy fall. The growing presence of Asian and other developing economies over recent years has also undermined Japan's standing."

Can investors' greed save Africa? A chase for enormous profits is succeeding where aid often hasn't -- in poor villages in sub-Saharan Africa where malaria is common and jobs are not. All told, at least $2.6 billion in private-equity deals have been struck this year in the region (excluding more-developed South Africa), nearly seven times the 2005 figure. This is the investing world's final frontier, so undeveloped and impoverished that it makes other extreme emerging markets like Colombia and Vietnam seem like marvels of modernity. In many ways, Africa's economic situation seems hopeless. Though $625 billion in foreign aid has poured in since 1960, there has been no rise in the region's per capita gross domestic product, notes William Easterly, an economics professor at New York University. What's more, from 1976 to 2000, Africa's share of global trade dropped to 1% from an already negligible 3%. The United Nations' scale of human development, which considers health, education and economic well-being, ranks 34 African nations among the world's 40 lowest. Thus far, foreign aid hasn't made a dent. Greed, however, might. Thanks to the global commodities boom of the past few years, sub-Saharan Africa's economies, after decades of stagnation, are expanding by an average of 6% annually -- twice the U.S. pace. And like bees to honey, investors are swarming into the region in search of the enormous returns that ultra-early-stage investments can bring.

A Marine’s Order: Feed the Hand That Bit You Battle-scarred marines and soldiers are now doing what they couldn’t fathom less than a year ago, working beside Iraqis who may have tried to kill them. Ordered to act as mentors and honest brokers, to suppress personal feelings for the common good, the troops are surrounded by a language they don’t speak, rejiggering alliances they don’t quite fathom, while they try to rebuild a broken, politically immature nation on bedrock American values of enterprise, tolerance, hard work and optimism. Horatio Alger and Audie Murphy — those archetypal “can do” Americans — once again are hearing “the enemy of my enemy is my friend.” The Iraqis are wary, too, because they think, perhaps mistakenly, that they recognize the Americans’ behavior. Seventeen years ago, the first President Bush turned furiously against the Sunni dictator Saddam Hussein, only to abandon Iraq’s Shiites when they rose up against Mr. Hussein. Then, after toppling Mr. Hussein, marines stormed the Sunni stronghold of Falluja three years ago, subduing its rebels by decimating the city and leaving hundreds dead. Mutual distrust is what remains. Iraqis resent American power but also say they fear that the Americans will leave without making the country stable and prosperous. Hearing such contradictory attitudes is part of what bewilders the Americans, who continue to wonder if their old enemies are just playing them — snatching all the money and arms they can in preparation for a future battle. But getting Iraqis to take the lead was a challenge. That is the way things have gone in Iraq for years, and often the root of the problem can be traced to Saddam Hussein. His paranoid totalitarian rule crushed initiative, set neighbor against neighbor and injected fear into nearly every interaction. The regime’s abuses can still be seen in Sunni-Shiite antagonisms: Sunnis were favored under Mr. Hussein, and do not relish their loss of status; Shiites feel they are finally getting their due and have little interest in sharing. The divide shows up in the streets.

Politics and Policies

Clinton, Obama Are Odds-on Picks for Presidency The gates are about to open for the U.S. presidential race. The early odds, if history is an indicator, will be close to the mark. Looking at bookmakers in Las Vegas and London, and the crystal balls of a few seasoned political practitioners from both parties, a clear line has emerged. First are the elements of a Democratic year. Pay less attention to the close general-election trial heats; they are lagging indicators as Ronald Reagan, circa December 1979, and Bill Clinton, circa December 1991, could have told you. The fundamentals -- the country's mood, the political cycle, the likely shape of the economy, and the movement of certain constituencies such as Hispanics and young voters -- all tilt Democratic. Thus, lay down 7-to-win-5 on a Democrat taking the presidential oath of office 13 months from now, 2-to-1 that it's a Republican, and 20-to-1 an independent or third-party candidate.

Obama, Edwards Go Long Barack Obama and John Edwards have devoted some last-minute campaigning in New Hampshire where some recent state surveys have shown Hillary Clinton's lead evaporating. Having drawn Hillary Clinton into a trench war in Iowa, her Democratic rivals are stepping up the pressure in New Hampshire and beyond. Both Barack Obama and John Edwards devoted some last-minute campaign time here this past week, even though Iowa's Jan. 3 caucus comes five days before the New Hampshire primary. Mr. Edwards said Friday he plans a return trip the day after Christmas before diving into the final-week Iowa sprint. Mrs. Clinton began her own two-day run through New Hampshire Friday. While polls in New Hampshire -- often considered a "firewall" for Mrs. Clinton should she lose Iowa -- have been volatile, some recent state surveys have shown her lead over Mr. Obama evaporating.

The Résumé Factor: Those 8 Years as First Lady But during those two terms in the White House, Mrs. Clinton did not hold a security clearance. She did not attend National Security Council meetings. She was not given a copy of the president’s daily intelligence briefing. She did not assert herself on the crises in Somalia, Haiti and Rwanda. An interview with Mrs. Clinton, conversations with 35 Clinton administration officials and a review of books about her White House years suggest that she was more of a sounding board than a policy maker, who learned through osmosis rather than decision-making, and who grew gradually more comfortable with the use of military power. But other administration officials, as well as opponents of Mrs. Clinton, are skeptical that the couple’s conversations and her 79 trips add up to unique experience that voters should reward. She was not independently judging intelligence, for the most part, or mediating the data, egos and agendas of a national security team. And, in the end, she did not feel or process the weight of responsibility.

American Pastoral Peggy Noonan wonders if Huckabee knows his approach is making people uncomfortable. Is there a word for "This is nice" and "This is creepy"? For that is what I felt. This is so sweet-appalling.I love the cross. The sight of it, the fact of it, saves me, literally and figuratively. But there is a kind of democratic politesse in America, and it has served us well, in which we are happy to profess our faith but don't really hit people over the head with its symbols in an explicitly political setting, such as a campaign commercial, which is what Mr. Huckabee's ad was. I wound up thinking this: That guy is using the cross so I'll like him. That doesn't tell me what he thinks of Jesus, but it does tell me what he thinks of me. He thinks I'm dim. He thinks I will associate my savior with his candidacy. Bleh. Mr. Huckabee is a telegenic presence, fluid and unself-conscious. The camera is his friend. It is not the potential exposer of his flaws but the conduit by which his warmth and intelligence can be more broadly known. This gift, and seeing the camera this way is a gift, carries greater implications in American politics than, say, in British politics. In Britain, public persona is important, as Tony Blair showed, but there you rise up in the parliamentary system. You have to learn to play well with the other children. You have to form alliances, handle a portfolio, create coalitions, lead within the party and then the country. In American politics you don't have to go through that grueling process. You can be born on TV. Prayer is powerful. But Huckabee's critics say he's a manipulator with a mean streak and little knowledge of the world. And Isaiah 54 doesn't say anything about self-inflicted wounds.

Foreclosures in Iowa Pressure Candidates The home-foreclosure crisis is gaining prominence on the campaign trail, as Democrats and Republicans alike scramble to present new plans. The home-mortgage crisis is gaining prominence on the campaign trail, as Democrats and Republicans alike scramble to present new plans to voters, who are increasingly raising the issue in the run-up to the Jan. 3 Iowa caucus. New federal-court data in Iowa this week showed personal-bankruptcy filings were up sharply from last year. Iowa home foreclosures were up 50% in November from last year, and up 11% from October, according to RealtyTrac, a real-estate research company. The foreclosure issue is likely to get only more attention as candidates shift their focus to other states. January primary and caucus states are at the top of the list in terms of foreclosures as a percentage of households, according to RealtyTrac. Republican candidates have generally avoided the issue, but this past week, two leading contenders weighed in, albeit gingerly. Democrats, meanwhile, have become increasingly vocal on the issue, making it more and more a staple of stump speeches.

Crime, Drugs, Welfare—and Other Good News Fifteen years ago, a deep pessimism seemed to be stalking the American landscape. It arose from diverse quarters, took different forms, and cited a congeries of different symptoms—military, economic, social, cultural, and spiritual—in support of its dark diagnosis. As for the social reality underlying this general feeling of decline, a number of conservative commentators, concentrating especially on the areas of crime, welfare dependency, and illegitimacy, undertook the task of quantifying and analyzing the available evidence. But a strange thing happened on the way to Gomorrah. Just when it seemed as if the storm clouds were about to burst, they began to part. As if at once, things began to turn around. And now, a decade-and-a-half after these well-founded and unrelievedly dire warnings, improvements are visible in the vast majority of social indicators; in some areas, like crime and welfare, the progress has the dimensions of a sea-change. That this has happened should be a source of great encouragement; why it happened, and what we can learn from it, is a subject of no less importance. In a number of key categories, the amount of ground gained or regained since the early 1990’s is truly stunning. The point is that we do not know everything, and we cannot come to unequivocal conclusions about the future on the basis of the last fifteen years. No trend line runs consistently for long, and no rule is without exceptions. That does not mean, however, that we have learned nothing, or that no lasting lessons can be drawn from our experience. Culture itself, finally, exhibits an ebb and flow as surely as economies pass through cycles of ups and downs. Despite persistent anomalies and backslidings, some species of cultural re-norming certainly seems to have been occurring in this country over the past decade-and-a-half, and it is fascinating to observe in whose hearts its effects have registered most strongly. In attitudes toward education, drugs, abortion, religion, marriage, and divorce, the current generation of teenagers and young adults appears in many respects to be more culturally conservative than its immediate predecessors. To any who may have written off American society as incorrigibly corrupt and adrift, these young people offer a powerful reminder of the boundless inner resources still at our disposal, and of our constantly surprising national resilience.

Science and Culture

A Threat So Big, Academics Try Collaboration It is a basic tenet of university research: Economists conduct joint studies, chemists join forces in the laboratory, political scientists share ideas about other cultures — but rarely do the researchers cross disciplinary lines. The political landscape of academia, combined with the fight for grant money, has always fostered competition far more than collaboration. But the threat of global warming may just change all that. That realization is spreading throughout academia. So more universities are setting up stand-alone centers that offer neutral ground on which engineering students can work on alternative fuels while business students calculate the economics of those fuels and political science majors figure how to make the fuels palatable to governments in both developing nations and America’s states.

 

Noble or savage? The era of the hunter-gatherer was not the social and environmental Eden that some suggest. About 12,000 years ago people embarked on an experiment called agriculture and some say that they, and their planet, have never recovered. Farming brought a population explosion, protein and vitamin deficiency, new diseases and deforestation. Human height actually shrank by nearly six inches after the first adoption of crops in the Near East. Why change? In the late 1970s Mark Cohen, an archaeologist, first suggested that agriculture was born of desperation, rather than inspiration. Evidence from the Fertile Crescent seems to support him. Rising human population density, combined perhaps with a cooling, drying climate, left the Natufian hunter-gatherers of the region short of acorns, gazelles and wild grass seeds. Somebody started trying to preserve and enhance a field of chickpeas or wheat-grass and soon planting, weeding, reaping and threshing were born. Several archaeologists and anthropologists now argue that violence was much more pervasive in hunter-gatherer society than in more recent eras.The warfare death rate of 0.5% of the population per year that Lawrence Keeley of the University of Illinois calculates as typical of hunter-gatherer societies would equate to 2 billion people dying during the 20th century. At first, anthropologists were inclined to think this a modern pathology. But it is increasingly looking as if it is the natural state. Constant warfare was necessary to keep population density down to one person per square mile. Farmers can live at 100 times that density. Hunter-gatherers may have been so lithe and healthy because the weak were dead. The invention of agriculture and the advent of settled society merely swapped high mortality for high morbidity, allowing people some relief from chronic warfare so they could at least grind out an existence, rather than being ground out of existence altogether. Notice a close parallel with the industrial revolution. When rural peasants swapped their hovels for the textile mills of Lancashire, did it feel like an improvement? The Dickensian view is that factories replaced a rural idyll with urban misery, poverty, pollution and illness. Factories were indeed miserable and the urban poor were overworked and underfed. But they had flocked to take the jobs in factories often to get away from the cold, muddy, starving rural hell of their birth.

 

January 02, 2008

Welcome to Ganesha's World: Obstacles, Foresight and Action

Welcome to the New Year. Hope last year was everything you hoped for and this next will be as well. Without quite planning it over the holidays I put up a series of posts on various aspects of what the holiday spirit means to me. And what I hope it might mean to you. In the spirit of looking around for a wrapup for that series let me point you to the Hindu deity Ganesha, partly because an elephant-headed deity is just way cool. But also because he is the deity of Obstacles - both creating and destroying, or more correctlyin placing and removing. He's also the patron of the Arts and the deva of wisdom and intelligence. Two topics we've been exploring in several real-world ramifications in this series. Before we list our posts though let me point you at a couple of Seth Godin's that capture the "spirit", as we choose to take it and present, Ganesha.

Only two years left The thing is, we still live in a world that's filled with opportunity. In fact, we have more than an opportunity -- we have an obligation. An obligation to spend our time doing great things. To find ideas that matter and to share them. To push ourselves and the people around us to demonstrate gratitude, insight, and inspiration. To take risks and to make the world better by being amazing.Are these crazy times? You bet they are. But so were the days when we were doing duck-and-cover air-raid drills in school, or going through the scares of Three Mile Island and Love Canal. There will always be crazy times.So stop thinking about how crazy the times are, and start thinking about what the crazy times demand.

Seth also offers up this related piece of wisdom: Solving problemsThere are three ways to deal with a problem, I think.Lean into it.Lean away from it.Run away.

Meanwhile here's our little list of reflections on the Holiday Spirit:

  • May the Best of the Holidays Find You and Bless You
  • Christmas Spirit and Dinner Miracles
  • And Peace Unto Men....Practicing Spirit
  • Following the Spirit: Leaders, Leadership and the "Wise" Course
  • Practicing the Spirit: Respect, Tolerance and Civitas
  • And because we just can't resist here's some excerpts from stories that caught our eye that resonate with us, with the arguments and themes we tried to establish in these posts and throut the year and even, perhaps, with Seth's posts. But judge for yourselves. In the meantime, "May the Wind Be At Your Back and the Road Rise to Meet You" !

    Crime, Drugs, Welfare—and Other Good News Fifteen years ago, a deep pessimism seemed to be stalking the American landscape. It arose from diverse quarters, took different forms, and cited a congeries of different symptoms—military, economic, social, cultural, and spiritual—in support of its dark diagnosis. As for the social reality underlying this general feeling of decline, a number of conservative commentators, concentrating especially on the areas of crime, welfare dependency, and illegitimacy, undertook the task of quantifying and analyzing the available evidence. But a strange thing happened on the way to Gomorrah. Just when it seemed as if the storm clouds were about to burst, they began to part. As if at once, things began to turn around. And now, a decade-and-a-half after these well-founded and unrelievedly dire warnings, improvements are visible in the vast majority of social indicators; in some areas, like crime and welfare, the progress has the dimensions of a sea-change. That this has happened should be a source of great encouragement; why it happened, and what we can learn from it, is a subject of no less importance. In a number of key categories, the amount of ground gained or regained since the early 1990’s is truly stunning. The point is that we do not know everything, and we cannot come to unequivocal conclusions about the future on the basis of the last fifteen years. No trend line runs consistently for long, and no rule is without exceptions. That does not mean, however, that we have learned nothing, or that no lasting lessons can be drawn from our experience. Culture itself, finally, exhibits an ebb and flow as surely as economies pass through cycles of ups and downs. Despite persistent anomalies and backslidings, some species of cultural re-norming certainly seems to have been occurring in this country over the past decade-and-a-half, and it is fascinating to observe in whose hearts its effects have registered most strongly. In attitudes toward education, drugs, abortion, religion, marriage, and divorce, the current generation of teenagers and young adults appears in many respects to be more culturally conservative than its immediate predecessors. To any who may have written off American society as incorrigibly corrupt and adrift, these young people offer a powerful reminder of the boundless inner resources still at our disposal, and of our constantly surprising national resilience.

    A Threat So Big, Academics Try Collaboration It is a basic tenet of university research: Economists conduct joint studies, chemists join forces in the laboratory, political scientists share ideas about other cultures — but rarely do the researchers cross disciplinary lines. The political landscape of academia, combined with the fight for grant money, has always fostered competition far more than collaboration. But the threat of global warming may just change all that. That realization is spreading throughout academia. So more universities are setting up stand-alone centers that offer neutral ground on which engineering students can work on alternative fuels while business students calculate the economics of those fuels and political science majors figure how to make the fuels palatable to governments in both developing nations and America’s states.

     

    Noble or savage? The era of the hunter-gatherer was not the social and environmental Eden that some suggest. About 12,000 years ago people embarked on an experiment called agriculture and some say that they, and their planet, have never recovered. Farming brought a population explosion, protein and vitamin deficiency, new diseases and deforestation. Human height actually shrank by nearly six inches after the first adoption of crops in the Near East. Why change? In the late 1970s Mark Cohen, an archaeologist, first suggested that agriculture was born of desperation, rather than inspiration. Evidence from the Fertile Crescent seems to support him. Rising human population density, combined perhaps with a cooling, drying climate, left the Natufian hunter-gatherers of the region short of acorns, gazelles and wild grass seeds. Somebody started trying to preserve and enhance a field of chickpeas or wheat-grass and soon planting, weeding, reaping and threshing were born. Several archaeologists and anthropologists now argue that violence was much more pervasive in hunter-gatherer society than in more recent eras.The warfare death rate of 0.5% of the population per year that Lawrence Keeley of the University of Illinois calculates as typical of hunter-gatherer societies would equate to 2 billion people dying during the 20th century. At first, anthropologists were inclined to think this a modern pathology. But it is increasingly looking as if it is the natural state. Constant warfare was necessary to keep population density down to one person per square mile. Farmers can live at 100 times that density. Hunter-gatherers may have been so lithe and healthy because the weak were dead. The invention of agriculture and the advent of settled society merely swapped high mortality for high morbidity, allowing people some relief from chronic warfare so they could at least grind out an existence, rather than being ground out of existence altogether. Notice a close parallel with the industrial revolution. When rural peasants swapped their hovels for the textile mills of Lancashire, did it feel like an improvement? The Dickensian view is that factories replaced a rural idyll with urban misery, poverty, pollution and illness. Factories were indeed miserable and the urban poor were overworked and underfed. But they had flocked to take the jobs in factories often to get away from the cold, muddy, starving rural hell of their birth.

    A Marine’s Order: Feed the Hand That Bit You Battle-scarred marines and soldiers are now doing what they couldn’t fathom less than a year ago, working beside Iraqis who may have tried to kill them. Ordered to act as mentors and honest brokers, to suppress personal feelings for the common good, the troops are surrounded by a language they don’t speak, rejiggering alliances they don’t quite fathom, while they try to rebuild a broken, politically immature nation on bedrock American values of enterprise, tolerance, hard work and optimism. Horatio Alger and Audie Murphy — those archetypal “can do” Americans — once again are hearing “the enemy of my enemy is my friend.” The Iraqis are wary, too, because they think, perhaps mistakenly, that they recognize the Americans’ behavior. Seventeen years ago, the first President Bush turned furiously against the Sunni dictator Saddam Hussein, only to abandon Iraq’s Shiites when they rose up against Mr. Hussein. Then, after toppling Mr. Hussein, marines stormed the Sunni stronghold of Falluja three years ago, subduing its rebels by decimating the city and leaving hundreds dead. Mutual distrust is what remains. Iraqis resent American power but also say they fear that the Americans will leave without making the country stable and prosperous. Hearing such contradictory attitudes is part of what bewilders the Americans, who continue to wonder if their old enemies are just playing them — snatching all the money and arms they can in preparation for a future battle. But getting Iraqis to take the lead was a challenge. That is the way things have gone in Iraq for years, and often the root of the problem can be traced to Saddam Hussein. His paranoid totalitarian rule crushed initiative, set neighbor against neighbor and injected fear into nearly every interaction. The regime’s abuses can still be seen in Sunni-Shiite antagonisms: Sunnis were favored under Mr. Hussein, and do not relish their loss of status; Shiites feel they are finally getting their due and have little interest in sharing. The divide shows up in the streets.

    Can investors' greed save Africa? A chase for enormous profits is succeeding where aid often hasn't -- in poor villages in sub-Saharan Africa where malaria is common and jobs are not. All told, at least $2.6 billion in private-equity deals have been struck this year in the region (excluding more-developed South Africa), nearly seven times the 2005 figure. This is the investing world's final frontier, so undeveloped and impoverished that it makes other extreme emerging markets like Colombia and Vietnam seem like marvels of modernity. In many ways, Africa's economic situation seems hopeless. Though $625 billion in foreign aid has poured in since 1960, there has been no rise in the region's per capita gross domestic product, notes William Easterly, an economics professor at New York University. What's more, from 1976 to 2000, Africa's share of global trade dropped to 1% from an already negligible 3%. The United Nations' scale of human development, which considers health, education and economic well-being, ranks 34 African nations among the world's 40 lowest. Thus far, foreign aid hasn't made a dent. Greed, however, might. Thanks to the global commodities boom of the past few years, sub-Saharan Africa's economies, after decades of stagnation, are expanding by an average of 6% annually -- twice the U.S. pace. And like bees to honey, investors are swarming into the region in search of the enormous returns that ultra-early-stage investments can bring.