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Ed Webb

Why Factories Leaving China Aren't Going to India - Bloomberg - 0 views

  • Vietnam seems to be the consensus pick for winner of the U.S.-China trade war, as Chinese and other manufacturers shift production to the cheaper Southeast Asian nation. If there’s a loser, at least in terms of missed opportunities, it may be the countries of South Asia.
  • Faced with rising costs, Chinese manufacturers must decide whether to invest in labor-saving automation technologies or to relocate. Those choosing the latter present an enormous opportunity for less-developed countries, as Chinese companies can help spark industrialization and much-needed economic transformation in their new homes. 
  • The only proven pathway to long-lasting, broad-based prosperity has been to build a manufacturing sector linked to global value chains, which raises productivity levels and creates knock-on jobs across the whole economy
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  • African countries, too, are making manufacturing a top priority. Ethiopia alone has opened nearly a dozen industrial parks in recent years and set up a world-class government agency to attract foreign investment. The World Bank has lauded sub-Saharan Africa as the region with the highest number of reforms each year since 2012.
  • In the last five years, the American Enterprise Institute’s China Global Investment Tracker has recorded 13 large Chinese investment deals in Africa and only nine in South Asia.
  • In the past few years, Bangladesh has fallen to 176 out of 190 countries in the global Ease of Doing Business country rankings. DBL Group, a Bangladeshi company, is investing in a new apparel manufacturing facility that will generate 4,000 jobs -- in Ethiopia.
Ed Webb

Survivors of Kissinger's Secret War in Cambodia Reveal Unreported Mass Killings - The I... - 0 views

  • Survivors from 13 Cambodian villages along the Vietnamese border told The Intercept about attacks that killed hundreds of their relatives and neighbors during Kissinger’s tenure in President Richard Nixon’s White House. The interviews with more than 75 Cambodian witnesses and survivors, published here for the first time, reveal in new detail the long-term trauma borne by survivors of the American war. These attacks were far more intimate and perhaps even more horrific than the violence already attributed to Kissinger’s policies, because the villages were not just bombed, but also strafed by helicopter gunships and burned and looted by U.S. and allied troops.
  • U.S. troops implicated in killing and maiming civilians received no meaningful punishments
  • Experts say Kissinger bears significant responsibility for attacks in Cambodia that killed as many as 150,000 civilians — six times more noncombatants than the United States has killed in airstrikes since 9/11.
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  • “You can trace a line from the bombing of Cambodia to the present,” said Greg Grandin, author of “Kissinger’s Shadow.” “The covert justifications for illegally bombing Cambodia became the framework for the justifications of drone strikes and forever war. It’s a perfect expression of American militarism’s unbroken circle.”
  • Grandin estimated that, overall, Kissinger — who also helped to prolong the Vietnam War and facilitate genocides in Cambodia, East Timor, and Bangladesh; accelerated civil wars in southern Africa; and supported coups and death squads throughout Latin America — has the blood of at least 3 million people on his hands
  • In his 2003 book, “Ending the Vietnam War,” Kissinger offered an estimate of 50,000 Cambodian civilian deaths from U.S. attacks during his involvement in the conflict — a number given to him by a Pentagon historian. But documents obtained by The Intercept show that number was conjured almost out of thin air. In reality, the U.S. bombardment of Cambodia ranks among the most intense air campaigns in history. More than 231,000 U.S. bombing sorties were flown over Cambodia from 1965 to 1973. Between 1969 and 1973, while Kissinger was national security adviser, U.S. aircraft dropped 500,000 or more tons of munitions. (During all of World War II, including the atomic bombings, the United States dropped around 160,000 tons of munitions on Japan.)
  • Ray Sitton, a colonel serving the Joint Chiefs of Staff, would bring a list of targets to the White House for approval. “Strike here in this area,” Kissinger would tell him, and Sitton would backchannel the coordinates into the field, circumventing the military chain of command. Authentic documents associated with the strikes were burned, and phony target coordinates and other forged data were provided to the Pentagon and Congress.
  • Kissinger was the chief architect of U.S. war policy in Southeast Asia, achieving almost co-president status in such matters. Kissinger and Nixon were also uniquely responsible for attacks that killed, wounded, or displaced hundreds of thousands of Cambodians and laid the groundwork for the Khmer Rouge genocide.
  • For decades, the U.S. government has shown little interest in examining allegations of civilian harm caused by its military operations around the world. A 2020 study of post-9/11 civilian casualty incidents found that most have gone completely uninvestigated, and in those cases that have come under official scrutiny, U.S. investigators regularly interview American military witnesses but almost totally ignore civilians — victims, survivors, family members, and bystanders — “severely compromising the effectiveness of investigations,” according to researchers from the Center for Civilians in Conflict and the Columbia Law School Human Rights Institute. The U.S. military rarely conducted investigations of civilian harm allegations in Cambodia and almost never interviewed Cambodian victims. In all 13 Cambodian villages I visited in 2010, I was the first person to ever interview victims of wartime attacks initiated 9,000 miles away in Washington, D.C.
  • The Defense Department has been clear that it isn’t interested in looking back. “At this point we don’t have an intent to re-litigate cases,” Defense Secretary Lloyd Austin told Rep. Sara Jacobs, D-Calif., when she asked last year whether the Pentagon was planning to revisit past civilian harm allegations from the forever wars. The possibility that the Defense Department will investigate civilian harm in Cambodia 50 years later is nil.
  • trauma can have intergenerational effects; it can be passed on, whether genetically or otherwise. Even at this late date, the pain of America’s war in Cambodia lives on
  • survivors believed that more than half of all the villagers living in Doun Rath during the late 1960s and early 1970s were either killed or wounded by American attacks
  • Both Vuth and her sister, 72-year-old Vuth Thang, broke down as soon as I explained the purpose of my reporting. They were away from their home in the village of Por when a B-52 strike wiped out 17 members of their family. “I lost my mother, father, sisters, brothers, everyone,”
  • Villagers said that when they first saw American aircraft overhead, they were awestruck. Having never seen anything like the giant machines, people came out to stare at them. Soon, however, residents of Mroan learned to fear them. Cooking rice became dangerous as Americans flying above would see the smoke and launch attacks. Helicopters, survivors said, routinely strafed both the nearby fields and the village itself, then comprised of about 100 homes. “This one was the most vicious,” said Sheang, pointing at a photograph of a Cobra gunship among pictures of other aircraft I provided. When the “coconut shell” helicopter, a U.S. Army OH-6 or “Loach,” marked an area with smoke, villagers recalled, the Cobra would attack, firing rockets that set homes ablaze. “During the American War, almost all houses in the village were burned,” said Sheang.
  • in May 1971, U.S. helicopter gunships shot up a Cambodian village, wounding a young girl who couldn’t be taken for treatment because a U.S. officer overloaded his helicopter with a looted motorcycle that was later gifted to a superior, according to an Army investigation and exclusive follow-up reporting by The Intercept. The Cambodian girl almost certainly died from her wounds, along with seven other civilians, according to previously unreported documents produced by a Pentagon war crimes task force in 1972.
  • As Cambodians lay wounded and dying, the ARVN Rangers looted the village, grabbing ducks, chickens, wallets, clothing, cigarettes, tobacco, civilian radios, and other nonmilitary items, according to numerous American witnesses. “They were stealing everything they could get their hands on,” Capt. Thomas Agness, the pilot of the helicopter that carried Brooks and some of the ARVN, told me. Brooks, however, had the biggest score of all. With the help of South Vietnamese troops, he hauled a blue Suzuki motorcycle onto a helicopter, according to Army documents.
  • While court martial charges were filed against Brooks, his commanding general dismissed them in 1972, instead giving him a letter of reprimand. Records indicate that no other troops were charged, let alone punished, in connection with the massacre, the looting, or the failure to render aid to wounded Cambodian civilians.
  • In late 1978, Vietnamese troops invaded Cambodia to oust the Khmer Rouge from power, driving Pol Pot’s forces to the Thai border. The U.S., however, threw its support behind Pol Pot, encouraging other nations to back his forces, funneling aid to his allies, helping him keep Cambodia’s seat at the United Nations, and opposing efforts to investigate or try Khmer Rouge leaders for genocide.
  • Kissinger’s mammoth memoir, “White House Years” was published. As journalist William Shawcross pointed out, Kissinger failed to even mention the carnage in Cambodia because “for Kissinger, Cambodia was a sideshow, its people expendable in the great game of large nations.”
Ed Webb

Opinion | The Case for Closing the Pentagon - POLITICO - 0 views

  • Charles Kenny is a Senior Fellow at the Center for Global Development. This article is adapted from his new book Close the Pentagon: Rethinking National Security for a Positive Sum World.
  • the Pentagon a potent symbol of America’s foreign-policy infrastructure in general, which is dominated by a massive, increasingly inefficient military machine better suited to the challenges of the mid-20th century than the early 21st. It is a machine that carries considerable direct economic costs but, more important, overshadows other foreign-policy tools more effective in confronting the global problems that the United States faces today. And just as the Pentagon is no longer fit for its backup purpose of records storage center in an age of cloud computing, nor is the Department of Defense well-placed to readjust to new roles, such as anti-terror or cybersecurity, let alone responding to climate change, pandemic threats or global financial crises.
  • interstate conflicts are going away. The last great power war began eight decades ago, and battlefield conflict has been on a declining trend since 1945. Battle deaths per 1 million people worldwide since World War II peaked at above 200 during the Korean War, reached about 100 at the height of the Vietnam War and plateaued at about 50 during the Cold War conflicts of the 1980s. In 2018, the number of deaths was around seven per 1 million people. Journalist Gregg Easterbrook reports that the last major naval engagement was in 1944, the last large air battle was in 1972 and the last major tank engagement was in the early 1990s.
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  • the United States needs a dramatic overhaul to adapt to the global threats of the 21st century, which should include moving away from military engagement and toward international cooperation on issues from peacekeeping to greenhouse gas reduction to global health to banking reform. Such an overhaul should also include cutting the defense budget in half by 2035, and perhaps even getting rid of the Pentagon itself.
  • the United States retains a massive global military advantage, responsible for one out of every three dollars spent on defense worldwide and outspending the countries with the next seven biggest military budgets combined. But while that ensures dominance at confrontation on the battlefield, it is not so useful for the kind of conflicts the world still fights, dominated by guerrilla warfare. That is demonstrated by America’s not-winning streak over the past seven decades in civil conflict: Korea, Vietnam, Afghanistan and Iraq. The “Global War on Terror” drags on; the two countries suffering the most terror attacks in the world are also the two countries the United States has invaded in the past 20 years.
  • The World Bank estimates that nearly two thirds of global wealth is intangible—inventions such as the internal combustion engine or the solar panel that allow people to produce more power with less resources than older technologies, institutions including systems of property rights and education—leaving only around a third to be accounted for by built infrastructure, land and natural resources combined. Only in poorer countries are natural resources a large proportion of total wealth
  • the technological underpinnings of high productivity, such as the engines and solar panels and property rights, are “non-rival”—we don’t have to fight for them. If I occupy land, you cannot. If I use the technology of the internal combustion engine or double-entry bookkeeping, you can use it at the same time. In fact, if we both use the same technologies, we both benefit even more.
  • land and resources simply aren’t worth the cost of the fight for successful economies. And that helps to explain why the conflict that remains is increasingly concentrated in poorer countries where natural resources are still relatively important, especially in sub-Saharan Africa
  • The low returns of war may also help to explain the limited military ambitions of China, which has the world’s second-largest defense budget—about 40 percent the size of America’s. While China clearly wants dominance in the South China Sea, the country has only two aircraft carriers—one of which is a secondhand boat left over from the days of the Soviet Union. It conducts bomber flights in international waters, but the two warships are limited to the same area. And it spends a smaller percentage of its gross domestic product on the military than does the United States: 1.9 percent compared with America’s 3.2 percent. China’s recent success has been built on global connections that have left it the world’s largest trading nation. A world war would tear apart those connections
  • one big, underappreciated reason for declining interstate war is that it doesn’t pay. Through most of history, global power and wealth have been determined by control of people, land and resources. Wars were fought over bodies and territory in zero-sum conflicts in which the victor took the spoils. Caesar was considered a Roman hero because he brought as many as 1 million slaves back from his Gallic wars alone. And as late as World War II, physical resources were still a key concern—Japan’s need for oil, Germany’s desire for Lebensraum (“living space”).
  • This low efficacy of the Department of Defense is primarily because the military is limited in its ability to keep the peace in countries where much of the population doesn’t want it there at a cost in lives, finance and time that is acceptable to U.S. voters and lawmakers.
  • Rising productivity has increased carbon emissions and other pressures on global sustainability. Connectivity leaves people worldwide more exposed to threats from elsewhere including viruses real and virtual alongside financial contagion. These new national security challenges require a collective response: We can’t bomb our way out of climate change or financial crises—we have to cooperate through international organizations, agreements and the shared financial incentives for signing on to them.
  • The total number of people working in the Department of Defense itself (none of whom are in the field actually defending or deterring war) climbed from 140,000 in 2002 to just shy of 200,000 in 2012. Nearly three-quarters of a million civilian federal employees work for the Defense Department—add in the Department of Veterans Affairs and that’s about half of the total civilian federal workforce
  • an institution that was recently declared simply unauditable due to complexity, failed systems and missing records—this after a $400 million effort involving over 1,200 auditors
  • Retired Lieutenant General David Barno and colleagues from the Center for a New American Security have listed seven “deadly sins” of defense spending in a recent report, ranging from redundant overhead through inefficient procurement systems to excess infrastructure to a bloated retirement system that could generate annual savings of $49 billion if rectified. If that sounds too large to be plausible, in 2015, the Department of Defense itself reported administrative waste and excess bureaucracy cost the institution an annual $25 billion.
  • A budget cut to 1.5 times the military spending of our nearest competitor (China) would free up about $150 billion of the current $649 billion in U.S. spending (as reported by the World Bank). Taking $100 billion of that and adding it to the U.S. overseas development assistance budget would also bring the U.S. aid ratio up to 0.7 percent of gross national Income—the U.N. target.
  • over 10 years, the United States could move toward 2 percent of GDP going to defense, down from today’s 3.2 percent—that’s the target set for NATO as a whole back in 2006. And perhaps in 15 years, U.S. military spending could reach the current global median: 1.5 percent of GDP
  • Each American citizen—man, woman and child—currently pays an average of $1,983 a year to the Department of Defense. Over an average lifetime, that adds up to $156,000 per person. It is a simply incredible sum for a country at zero risk of invasion and with a reasonable aversion to violent territorial expansion
Ed Webb

Jeffrey Sachs on the Catastrophic American Response to the Coronavirus | The New Yorker - 0 views

  • the core issues are the capacity of political leaders and their inner team, and the capacity of the institutions of governance—agencies, departments, and ministries—to be able to process information in a timely way and to be able to harness expert advice and evidence in a timely way. We live in a complicated world. If you try to wing it, as Trump does, you end up with more than forty thousand deaths. If you want to solve a problem, you have to be systematic about it, and know whom to turn to and how to listen and amass evidence. For politicians, that doesn’t necessarily come naturally, and for our President it doesn’t come at all.
  • Trump is the worst political leader I have experienced in all of my professional life, which is forty years of working with governments at a high level. I’ve never seen anything like the narcissism of this man, and here we are, a country so rich in expertise, in resources, in capacities, and yet we’re watching a complete failure of a political response—with a massive loss of life—in real time. It’s quite shocking, because Trump not only does not know how to approach this issue but he blocks those who do.
  • American politics has become deeply corrupt over decades, and it became so corrupt that normal governance already collapsed many years ago. And people with resources and knowledge know it, but they haven’t cared, because things have more or less gone on O.K., and the stock market has been booming
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  • Nobody here has viewed government as actually very functional for a long time, and not because it couldn’t be. It has been increasingly designed to fail. Specifically, it’s been designed to respond to powerful lobbies that want deregulation or tax cuts or some special privileges rather than to function in a normal way. And powerful people shrug their shoulders at that, because for the élites that’s been O.K., but it obviously hasn’t really been O.K. for a long time. We’ve had rising death rates. We’ve had the deaths of despair. We’ve had the failure to come to grips with climate change. We’ve had widening inequalities and massive suffering. But it hasn’t mattered in such a visible way.
  • my argument then was to not equate poverty with incompetence of governments. What we’re talking about today is a converse—don’t equate wealth with competence of governments. You can be wealthy and miserably corrupt and miserably ineffective, just like you can be poor and effective in governance.
  • The United States is completely failing at the federal level to control this epidemic. It’s a tragedy. We’re losing tens of thousands of lives unnecessarily because of the shambolic failure of Trump and his team to mobilize the vast resources of our country, both human and material. At the same time, there are poor countries that are doing much, much better at controlling the epidemic. Take a country like Vietnam, which is a low-income country in East Asia, and close to China, but for a variety of reasons they acted very quickly to stop the transmission of the virus, to a much greater extent than we did. They also don’t have the means for mass testing and so on. At least to date, they have been able to keep the epidemic more under control through public-health means, which is identifying potentially sick people, helping them to isolate, tracing their contacts, helping those people to isolate, and so on.
  • what I am recommending is that the International Monetary Fund provide emergency financing at essentially zero conditionality, other than that it be used responsibly. And that the World Health Organization work with governments that have the potential to supply additional equipment—that’s China, Korea, Japan, and a few others—and use the emergency financing and the availability of this urgently needed equipment to get it to these countries in need.
  • the United States has done the unimaginable, and that is to try to cut the functioning of the W.H.O. in the middle of the pandemic. So I’m not looking for American heroism. I’m looking for the United States not to be among the most destructive forces on the planet right now.
  • I’ve been a critic of the United States over the past quarter century for inaction, complacency, and overmilitarization. This is not new for me, but Trump is the worst American leader in our history, and he is a contemptible figure, so he’s creating more damage. But the fact of the lack of American leadership has been true, by and large, for the last twenty years, with a couple of notable exceptions.
  • The funding for the Global Fund to Fight AIDS, T.B. and Malaria was essentially frozen at a time when it was important for that funding to increase. This is very modest levels of funding. It’s hundreds of millions or low billions of dollars. We speak in trillions in general, so I was not pleased and not impressed by that response. I thought it was shortsighted and harmful
  • the question of what’s politically possible and not politically possible, in my opinion and experience, is a lot more interesting and subtle than the typical views.
  • aid from the U.S. to developing countries is 0.16 per cent of G.D.P. It’s tiny. It’s a shocking level of ignorance and nastiness that it’s not higher. We’re talking about tiny amounts compared with all the other numbers that we are using these days. So think about the three hundred and fifty billion for the small-business program that quickly got exhausted and will now be another three hundred billion. The total cost of controlling malaria in the world per year is probably about three to five billion maximum, only a small fraction of which comes from the United States. We’re talking about incommensurate quantities in general. The aid is limited, not because we can’t afford it but primarily because our political system pays no attention to these issues.
  • Our political system for forty years now, since Ronald Reagan, has basically been dedicated to tax cuts, especially for rich people and corporations
Ed Webb

China's Glass Ceiling - By Geoff Dyer | Foreign Policy - 1 views

  • Rather than usher in a new era of Chinese influence, Beijing's missteps have shown why it is unlikely to become the world's leading power. Even if it overtakes the United States to have the biggest economy in the world, which many economists believe could happen over the next decade, China will not dislodge Washington from its central position in global affairs for decades to come.
  • China's assertiveness is generating intense suspicion, if not outright enmity, among its neighbors. Its "peaceful rise" is not taking place in isolation. There may be echoes in today's Asia of the late-nineteenth century in Europe and North America, but this is the one critical difference. The United States came into its own as a great power without any major challenge from its neighbors, while Germany's ascent was aided by the collapsing Austro-Hungarian and Ottoman empires and Russian monarchy on its frontiers. China, on the other hand, is surrounded by vibrant countries with fast-growing economies, from South Korea to India to Vietnam, who all believe that this is their time, as well. Even Japan, after two decades of stagnation, still has one of the most formidable navies in the world, as well as the world's third largest economy. China's strategic misfortune is to be bordered by robust and proud nation-states which expect their own stake in the modern world.
  • On the economic front, Beijing is taking aim at another pillar of U.S. power: the dominance of the dollar. China is putting in place an ambitious long-term plan to turn the renminbi into one of the main international currencies. Chinese leaders often discuss the project in technical terms, about reducing currency risk for their companies, but they also do little to hide their frustration with the dollar's privileged status. One Chinese academic even likens the importance of the project to turn the renminbi into a major reserve currency to China's acquisition of a nuclear weapon in the 1960s. The politics of the currency plan are themselves an interesting sidebar to the over-hyping of Chinese influence. While American politicians have been worrying loudly about the risk of China owning so many Treasury bonds ("How do you deal toughly with your banker?" Hillary Clinton asked at a private lunch with then Australian Prime Minister Kevin Rudd in March 2009) China has been fretting about how little leverage its U.S. bond holdings give it. The desire to dethrone the dollar is partly rooted in China's frustration that it has absolutely no influence over the Federal Reserve. And yet it has few options other than buying American debt, because the U.S. Treasury bond market is the largest and most liquid in the world.
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  • The key to Chinese state capitalism is control over a relatively closed financial system, which allows the Communist Party to funnel huge volumes of cheap credit to select projects, industries, and companies. But to have a truly international currency, one that the world's central banks want to hold, China would have to let investors from around the world buy and sell large volumes of Chinese financial assets. As a result, Beijing would have to dismantle that system of controls. It would need to permit capital to flow freely in and out of the country, let the market set interest rates and allow the currency to float. An independent legal system and transparent economic policymaking would also be useful. China has a choice. It can have an international currency that might challenge the U.S. dollar or it can keep its brand of state capitalism that has driven the economy and kept the Communist Party in power. But it cannot have both.
  • Beijing is not looking to export its economic and political model around the world, but it has become obsessed with soft power -- the idea that countries can get their way through the attractiveness of their society, rather than just by force or money. China is opening hundreds of Confucius Institutes around the world and spending billions to send its main state-owned media groups overseas, including launching a cable news channel in the United States. At the very least, Beijing hopes these investments can shift the way the world thinks about China, and maybe even chip away at the cultural influence the United States enjoys
  • Soft power is generated by society rather than the Ministry of Culture. The effort to shift its image is constantly undermined by the way that China actually treats its more awkward and interesting citizens -- from well-known figures like Nobel Peace Prize winner Liu Xiaobo and artist Ai Weiwei to the writer Yu Jie
  • The balance of influence between the United States and China over the coming decades will hinge to a large degree on which nation can mobilize other nations to its cause. This is an area where Washington is far more skilled. The new bursts of free trade projects in the Pacific and with the European Union are one example, even if they are far from being completed, and its long-lasting military alliances in Asia and Europe another.
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    How to navigate shifting balance of power in Asia.
Ed Webb

Mali Is Not a Stan - By Laura Seay | Foreign Policy - 1 views

  • It wasn't until Jan. 11, when France began bombing the Islamists to stop their advance on Mali's government-held south, that the rest of the world snapped to attention. And that's when the trouble began: the terrible headlines, the misleading cover art, and the bad analysis.
  • African affairs are generally a low foreign-policy priority for the United States. As such, the American foreign policy establishment is not well known for its expertise on West African security crises. But France's sudden and deep engagement in Mali -- and limited U.S. support for the operation -- left most media outlets and think tanks in need of immediate explanations. Not surprisingly, this state of affairs led to a sudden proliferation of Mali "experts" pontificating on the airways and in print about a country most could not have located with ease on a map two weeks before. False claims based on limited contextual knowledge have since abounded, including one widely repeated claim that this crisis is largely a result of the Libya intervention (it's not; this happened due to domestic political crises in Mali).
  • Remember all those comparisons of Afghanistan to Vietnam? The historical analogy had only very limited utility because the former's history and context had almost nothing in common with the latter's. Likewise, Mali's uniqueness means that outcomes in that country -- as well as the depth and breadth of French engagement -- will no doubt be very different.
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  • France's engagement in Mali is also unlike U.S. engagement in Afghanistan in that, because of their colonial history, the French know what they are getting into. There are decades of outstanding French scholarship on Mali; France is practically drowning in Mali experts in government, academia, and the private sector. This is more important than many realize; having deep cultural and historical knowledge and a shared language (most educated Malians still speak French) makes it much easier for French forces to relate to average Malians and build friendships with key local leaders whose support will be necessary for long-term success.
Ed Webb

China: Soon the most visible victim of deglobalisation - Al Jazeera English - 1 views

  • China's exports hit an all-time high in December, 2015 and (ignoring season fluctuations) have been declining ever since. China is increasingly turning inward for growth - and having trouble finding it
  • Most other countries export intermediate goods that are just parts and components of the finished goods that consumers actually buy. China more often exports the finished goods
  • both Chinese and global exports are falling
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  • the roots of today's global economy really go back to 1973, when the United States went off the gold standard and most countries moved from fixed to floating exchange rates. Floating exchange rates meant that the era of managed trade was over. The global economy moved into a new phase driven by market forces. The oil exporting countries of the Gulf were the first to benefit as the market price for oil quadrupled between 1973 and 1974. China came to the party just a few years later. Since then the global economy has become more and more open. After the currency liberalisation of 1973 came a huge increase in international trade and then, in the 1990s, in foreign investment. Both trade and investment peaked in 2007-2008
  • Annual global FDI is down roughly 50 percent from its 2007 peak of just over $3 trillion. It's still much larger than it was in the 1990s or earlier decades, but global FDI has stabilised at roughly the levels of the early 2000s.
  • These days China has to compete with India, Southeast Asia, Latin America and even Africa for scarce foreign investment dollars
  • China's export-oriented garment industry employs about 10 million people. These jobs are increasingly threatened as companies move production to lower-cost countries such as Vietnam
  • China has been the most visible beneficiary of the increasing globalisation of the global economy. Soon it may be the most visible victim of deglobalisation
Ed Webb

More Wealth, More Jobs, but Not for Everyone: What Fuels the Backlash on Trade - The Ne... - 1 views

  • “More global trade is a good thing if we get a piece of the cake,” Mr. Duijzers said. “But that’s the problem. We’re not getting our piece of the cake.”
  • For generations, libraries full of economics textbooks have rightly promised that global trade expands national wealth by lowering the price of goods, lifting wages and amplifying growth. The powers that emerged victorious from World War II championed globalization as the antidote to future conflicts. From Asia to Europe to North America, governments of every ideological persuasion have focused on trade as their guiding economic force. Advertisement Continue reading the main story But trade comes with no assurances that the spoils will be shared equitably. Across much of the industrialized world, an outsize share of the winnings have been harvested by people with advanced degrees, stock options and the need for accountants. Ordinary laborers have borne the costs, suffering joblessness and deepening economic anxiety
  • When millions of workers lost paychecks to foreign competition, they lacked government supports to cushion the blow. As a result, seething anger is upending politics from Europe to North America.
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  • Much of the global economy is operating free of artificial enhancements. Lower-skilled workers confront bleak opportunities and intense competition, especially in the United States. Even as recent data shows middle-class Americans are finally starting to share in the gains from the recovery, incomes for many remain below where they were a decade ago
  • technological disruption and economic upheaval are now at work in an era of scarcity
  • The worst financial crisis since the Great Depression has left banks from Europe to the United States reluctant to lend. Real estate bonanzas from Spain to Southern California gave way to a disastrous wave of foreclosures, eliminating construction jobs. China’s slowdown has diminished its appetite for raw materials, sowing unemployment from the iron ore mines of Brazil to the coal pits of Indonesia.
  • Trade did not cause the breakdown in economic growth. Indeed, trade has helped generate what growth remains. But the pervasive stagnation has left little cover for those set back by globalization.
  • China’s entry into the World Trade Organization in 2001 unleashed a far larger shock, but a construction boom absorbed many laid-off workers.
  • “We do need to have these trade agreements,” Mr. Bown said, “but we do need to be cognizant that there are going to be losers and we need to have policies to address them.”
  • Corporations that used China to cut costs raised their value, enriching executives and ordinary investors. Today’s Headlines Wake up each morning to the day’s top news, analysis and opinion delivered to your inbox. Please verify you're not a robot by clicking the box. Invalid email address. Please re-enter. Sign Up Receive occasional updates and special offers for The New York Times's products and services. Thank you for subscribing. An error has occurred. Please try again later. You are already subscribed to this email. View all New York Times newsletters. See Sample Manage Email Preferences Not you? Privacy Policy The casualties of China’s exports are far fewer, but they are concentrated. The rugged country of western North Carolina suffered mass unemployment as Chinese-made wooden furniture put local plants out of business. So did glassmakers in Toledo, Ohio, and auto parts manufacturers across the Midwest.
  • Even among those who support trade, doubts are growing about its ability to deliver on crucial promises. A 2014 Pew Research Center survey of people in 44 countries found that only 45 percent of respondents believed trade raises wages. Only 26 percent believed that trade lowers prices.
  • Workers employed in major export industries earn higher wages than those in domestically focused sectors.Americans saw their choice of products expand by one-third in recent decades, the Federal Reserve Bank of Dallas found. Trade is how raspberries appear on store shelves in the dead of winter.
  • In the fallout, the United States maintained limits on unemployment benefits, leaving American workers vulnerable to plummeting fortunes. Social welfare systems have limited the toll in Europe, but economic growth has been weak, so jobs are scarce.
  • automation has grown in sophistication and reach. Between 2000 and 2010, the United States lost some 5.6 million manufacturing jobs, by the government’s calculation. Only 13 percent of those job losses can be explained by trade, according to an analysis by the Center for Business and Economic Research at Ball State University in Indiana. The rest were casualties of automation or the result of tweaks to factory operations that enabled more production with less labor.
  • if robots are a more significant threat to paychecks, they are also harder to blame than hordes of low-wage workers in overseas factories.“We have a public policy toward trade,” said Douglas A. Irwin, an economist at Dartmouth College. “We don’t have a public policy on automation.”
  • China’s relentless development was turning farmland into factories, accelerated by a landmark in the history of trade: the country’s inclusion in the World Trade Organization.The W.T.O. was born out of the General Agreement on Tariffs and Trade, a compact forged in 1947 that lowered barriers to international commerce in an effort to prevent a repeat of global hostilities.In the first four decades, tariffs on manufactured wares plunged from about 35 percent to nearly 6 percent, according to the Federal Reserve Bank of Chicago. By 2000, the volume of trade among members had swelled to 25 times that of a half-century earlier.
  • Mexico — home to about 123 million people — was not big enough to refashion the terms of trade. When China joined the W.T.O. in 2001, that added a country of 1.3 billion people to the global trading system
  • The anti-trade backlash, building for years, has become explosive because the global economy has arrived at a sobering period of reckoning. Years of investment manias and financial machinations that juiced the job market have lost potency, exposing longstanding downsides of trade that had previously been masked by illusive prosperity.
  • Chinese imports eliminated nearly one million American manufacturing jobs between 1999 and 2011. Add in suppliers and other related industries, and the total job losses reach 2.4 million.
  • Mr. Trump vows to slap punitive tariffs on Chinese goods. But that would very likely just shift production to other low-wage countries like Vietnam and Mexico. It would not turn the lights on at shuttered textile plants in the Carolinas. (Even if it did, robots would probably capture most of the jobs.)
  • Trade Adjustment Assistance, a government program started in 1962 and expanded significantly a dozen years later, is supposed to support workers whose jobs are casualties of overseas competition. The program pays for job training.But Mr. Simmons rolls his eyes at mention of the program. Training has almost become a joke. Skills often do not translate from old jobs to new. Many workers just draw a check while they attend training and then remain jobless.
  • European workers have fared better. In wealthier countries like Germany, the Netherlands, Sweden and Denmark, unemployment benefits, housing subsidies and government-provided health care are far more generous than in the United States.In the five years after a job loss, an American family of four that is eligible for housing assistance receives average benefits equal to 25 percent of the unemployed person’s previous wages, according to data from the Organization for Economic Cooperation and Development. For a similar family in the Netherlands, benefits reach 70 percent.
  • Yet in Europe, too, the impacts of trade have been uneven, in part because of the quirks of the European Union. Trade deals are cut by Brussels, setting the terms for the 28 member nations. Social programs are left to national governments.
  • In China, farmers whose land has been turned into factories are making more steel than the world needs. Advertisement Continue reading the main story In America, idled steel workers are contemplating how to live off the land.
  • a provision that would enable multinational companies to sue governments for compensation when regulations dent their profits.Esso, a subsidiary of Exxon Mobil, the American petroleum company, has operations in the Netherlands. Suppose the government went ahead with plans to limit drilling to protect the environment?“They could sue the Dutch state,” he fumed. “We are not so sure in the Netherlands whether we want to give the multinationals so much power. We are a trading country, but it’s not always that trade should prevail against quality of life.”
  • the longshoremen fret about robots
  • Now, many longshoremen sit in glass-fronted offices set back from the docks, controlling robotic arms via computer terminals.
  • The robots will win in the end, because robots never strike. Robots improve with time.
  • Trade deals, immigrant labor, automation: As Mr. Arkenbout sees it, these are all just instruments wielded in pursuit of the same goal — paying him less so corporations can keep more.“When they don’t need me anymore,” he said, “I’m nothing.”
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    Relevant to our class discussion on 9/27/16
Ed Webb

China says its first aircraft carrier is now 'combat ready' | The Japan Times - 0 views

  • China’s first aircraft carrier is now ready for combat, state media said Tuesday, a key breakthrough as the Asian giant seeks to flex its naval muscle in waters far beyond its shores.
  • “As a military force, we are always prepared for war and our combat capacity also needs to be tested by war,” Li said. “At this moment, we are doing our best to promote our strength and use it to prevent war, and are prepared for actual combat at any time.”
  • The Liaoning differs from the aircraft carriers of other countries in both size and capability, according to the Center for Strategic and International Studies think tank’s China Power blog. “Although its overall capability is hindered by its comparatively inefficient power plant and underpowered aircraft-launching system, the Liaoning represents an important step in advancing China’s ability to project naval power,” the blog said in an analysis.
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  • the carrier is likely to put more muscle behind Beijing’s moves in the disputed South China Sea. Beijing claims most of the South China Sea, through which more than $5 trillion in annual trade passes. Brunei, Malaysia, the Philippines, Taiwan and Vietnam all have rival claims.
  •  
    Implications for balance of power in East Asia and (somewhat) globally. The next carrier will be more capable.
Ed Webb

BBC News - Wars, public outrage and policy options in Syria - 2 views

  • We've heard these pleas before. The BBC reports regularly from inside Syria, as do several American papers, and although coverage of the Syrian war is not wall-to-wall on American networks, it gets regular, consistent attention. So where is the public outrage about a war so chaotic and dangerous that even the UN has stopped keeping track of the death toll? Have we all become numb to the pain of others?
  • The world inevitably tires of complex, long conflicts where there are no clear answers about how to end the violence. This cartoon in the New Yorker is a harsh but perhaps accurate look at how the collective conscience deals with the relentless stream of bad news from Syria.
  • Spare a thought for the North Koreans, too. A UN report out last week, too horrific even to read, compares the abuses committee by the government to Nazi Germany. I have yet to see much outrage or calls for action
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  • When they discuss US policy options for Syria, administration officials repeatedly point to the fact that Americans have bigger concerns closer to home and that President Barack Obama is very mindful that the public has no appetite for interventions abroad, no matter how limited
  • The question is whether it would become more tenable for the president to take action if the public demanded it. Possibly, but that's not how public opinion works. People demonstrate to end wars and bring the troops home, like with Vietnam. They protest against invasions, like Iraq in 2003, when their country's troops are about to be shipped overseas. Or they support military action when their own country has come under attack. But people rarely rise up to demand action because of a sense of collective justice.
Ed Webb

Countries vulnerable to climate change form bloc - Al Jazeera English - 0 views

  • the 20 represented 700 million people in low- and middle-income nations that were arid, landlocked, mountainous or vulnerable to rising sea levels
  • Afghanistan, Bangladesh, Barbados, Bhutan, Costa Rica, Ethiopia, Ghana, Kenya, Kiribati, Madagascar, Maldives, Nepal, Philippines, Rwanda, Saint Lucia, Tanzania, East Timor, Tuvalu, Vanuatu and Vietnam
  • The 20 said they accounted for just two percent of world greenhouse gas emissions but had suffered an average of more than 50,000 deaths a year since 2010 from impacts they linked to rising temperatures
Ed Webb

Barack Obama's great test | open Democracy News Analysis - 1 views

  • the limitations of Obama's style and approach
  • His administration, he promised, would do its best to revive the world's economy, to address climate change, to prevent Iran acquiring nuclear weapons, and to bring peace to Israel and Palestine. These are all admirable aspirations, and it is perhaps unreasonable to hope that the president might have admitted that the United States has been largely responsible for each of these problems.
  • Barack Obama is increasingly coming to look like Lyndon B Johnson, a brilliantly gifted politician whose ambition to build a "great society" was sacrificed because of the war in Vietnam. The heart of the Obama approach is now clear. He genuinely wants to move away from the frozen folly of the neo-conservative Project for a New American Century, but he is not willing to take the political risk of acknowledging America's responsibility for the problems he wants to solve.
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  • Still less does anyone in Washington seem to understand that "Gitmo" itself was always an absurd colonial anomaly of the kind Americans used to denounce. Nor does there seem any will to undo the creation of an even more scandalous, though militarily more useful, colony in the Indian Ocean island of Diego Garcia.
  • Washington's instinct is to treat China as a potential partner in the domination of the world
  • Because Europe is divided into many different states, and no doubt because many American politicians and policy-makers find European attitudes annoying, American policy does not recognise that collectively Europe has a bigger economy than the United States and far bigger than China (even if China's growth has been spectacular).
  • No one questions Barack Obama's personal goodwill, still less his political intelligence. But on the basis of his first nine months in office, his commitment to a serious reassessment of the limitations of American power - let alone to an acknowledgment of the implications of the country's relative decline - is not yet clear.
Ed Webb

The Global Gilded Age - 0 views

  • Inequality within countries -- both rich and poor -- has been growing even as inequality between countries has been declining.
  • Poor countries -- especially big ones like China, India, Nigeria, Vietnam, Brazil, Turkey, and Indonesia -- have been opening their doors to the global economy and taking advantage of the opportunities it has to offer. Hundreds of millions of people have moved off of farms and into cities to take jobs in big factories and service operations. These businesses have adopted technology from around the world in an enormous feat of economic leapfrogging. They've packed a century of industrial development into just a few years.
  • absolute living standards have undoubtedly risen for a huge number of people
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  • inequality -- particularly the inequality of wealth -- disrupts the efficient allocation of opportunities in an economy. When a stupid rich kid gets a job that a smart poor kid could have done better, the economic pie shrinks for all of us.
  • All over the world, the Gilded Age has returned. As we know now, the Gilded Age was not necessarily the most productive period for the United States. Calculations by economists Louis Johnston and Samuel Williamson suggest that the cumulative annual growth rate of real gross domestic product per capita was about 1.8 percent between 1870 and 1910, compared with 2.2 percent in the postwar boom from 1947 to 2007. That difference of 0.4 percent may not seem like much, but over a span of decades it really adds up. Eventually, we found that competition and meritocracy worked better than robber barons and trusts.
  • The people best able to exploit the opportunities of globalization are those who already have money, education, and connections that reach beyond their countries' borders. They live by the mantra "buy low locally, sell high globally." Compatriots who work in their mines, sweatshops, and call centers may be slightly better off, but the newly globalized super-rich are off the charts.
  • The drop in inequality between countries won't do much at all to mitigate the situation. After all, the fact that a poor Burundian is now closer in income to a poor Bulgarian won't help his chances of winning a seat in parliament or a place at the national university if the incomes of rich Burundians have risen exponentially
Ed Webb

Here's what will happen if Iran joins the WTO - The Washington Post - 1 views

  • While it remains uncertain whether economic and financial sanctions would be technically permissible under the WTO’s national security exception — which allows a member to take measures that it “considers necessary for the protection of its essential security interests”– these actions would clearly violate the spirit of the WTO and have therefore been rarely used.
  • the United States has switched to using other tools for coercive diplomacy to punish other recent WTO entrants.
  • Congress therefore created the China Commission, which was specifically formed to monitor China’s human rights practices and maintain pressure on it. Similarly, Congress passed measures designed to allow it to more effectively use visa restrictions and financial asset freezes to coerce Russia, and foreign aid to extract concessions from Vietnam, after these states joined the WTO.
Ed Webb

Coronavirus measures could cause global food shortage, UN warns | Food security | The G... - 0 views

  • Protectionist measures by national governments during the coronavirus crisis could provoke food shortages around the world, the UN’s food body has warned.
  • a shortage of field workers brought on by the virus crisis and a move towards protectionism – tariffs and export bans – mean problems could quickly appear in the coming weeks, Maximo Torero, chief economist of the UN Food and Agriculture Organisation, told the Guardian
  • Kazakhstan, for instance, according to a report from Bloomberg, has banned exports of wheat flour, of which it is one of the world’s biggest sources, as well as restrictions on buckwheat and vegetables including onions, carrots and potatoes. Vietnam, the world’s third biggest rice exporter, has temporarily suspended rice export contracts. Russia, the world’s biggest wheat exporter, may also threaten to restrict exports, as it has done before, and the position of the US is in doubt given Donald Trump’s eagerness for a trade war in other commodities.
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  • “Trade barriers will create extreme volatility,” warned Torero. “[They] will make the situation worse. That’s what we observe in food crises.”
  • problems could start to be seen within weeks and intensify over the following two months as key fruit and vegetables come into season
  • “Fruit and vegetables are also very labour intensive, if the labour force is threatened because people can’t move then you have a problem.”
  • “We need to have policies in place so the labour force can keep doing their job. Protect people too, but we need the labour force. Major countries have yet to implement these sorts of policies to ensure that food can keep moving.”
  • Countries such as the UK, with a sinking currency and high level of imports, are also likely to see food price rises unless the government takes action or retailers absorb some of the costs
  • Individuals can also play an important role, by avoiding panic buying and hoarding of food, and cutting down on food waste. Buying too much fresh farm produce that then goes off before it can be eaten will just exacerbate food supply problems, he said. “Individuals should only buy what they need to avoid food waste.”
  • In the UK, some farming leaders have called for a “land army” of workers to replace a shortfall of workers that could reach 80,000, according to one estimate, if the 60,000 seasonal workers recruited from abroad in normal years are prevented from coming, and if some British workers fall ill.
  • Andre Laperriere, executive director of Global Open Data for Agriculture and Nutrition, which provides data on food and agriculture, said the government must make plans to ensure the food supply chain functioned smoothly.“Empty shelves in supermarkets should not be much of a concern,” he said. “It is not a supply problem – it is a logistics problem. There is enough supply for all, as long as everyone stays calm and stops hoarding. We may tend to waste food if we hoard more than required, and hoarding would also artificially increase food prices because of the pressure on the supply chain.”
  • “The food sector comes under the critical infrastructure sector, along with healthcare and emergency services,”
Ed Webb

America's Forever Wars - The New York Times - 0 views

  • it’s time to take stock of how broadly American forces are already committed to far-flung regions and to begin thinking hard about how much of that investment is necessary, how long it should continue and whether there is a strategy beyond just killing terrorists. Which Congress, lamentably, has not done. If the public is quiet, that is partly because so few families bear so much of this military burden, and partly because America is not involved in anything comparable to the Vietnam War, when huge American casualties produced sustained public protest. It is also because Congress has spent little time considering such issues in a comprehensive way or debating why all these deployments are needed
  • President Trump, like his predecessor, insists that legislation passed in 2001 to authorize the war against Al Qaeda is sufficient. It isn’t. After the Niger tragedy, the chairman of the Senate Foreign Relations Committee, Bob Corker of Tennessee, has agreed to at least hold a hearing on the authorization issue.
  • “a collective indifference to war has become an emblem of contemporary America.”
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  • 6,785 Afghan security force members died in 2016 and 2,531 died in the first five months this year, according to the United States and Afghan governments. Tens of thousands of civilians also perished at the hands of various combatants, including in 2017, but the figures get little publicity. Most Americans tend not to think about them.
  • Senators who balk at paying for health care and the basic diplomatic missions of the State Department approved a $700 billion defense budget for 2017-18, far more than Mr. Trump even requested.Whether this largess will continue is unclear. But the larger question involves the American public and how many new military adventures, if any, it is prepared to tolerate.
Ed Webb

NATO is best when it is doing nothing - Responsible Statecraft - 0 views

  • From this point of view, the Cold War was not won between 1989 and 1991. It was won between 1956, when the Hungarian masses revolted against communism, and 1961, when the East German communist state confessed that the only way it could stop its population from running away to a better life in West Germany was by building a giant prison wall to keep them in. From that moment, Soviet communism as an ideological model in Europe was dead. It was not yet dead in the former colonial world; and its expansion there, in alliance with anti-colonial nationalism, continued to give it the appearance of strength. But in the end, Vietnam, Angola, Afghanistan, and elsewhere did not really matter. What mattered to Washington were the great economic centres of Western Europe and maritime East Asia. For these, the United States  would have been prepared to risk nuclear war. And for Moscow, the vital interest was Eastern Europe, on the borders of the USSR itself. Recognizing these vital interests of the other side, neither side challenged them.
  • the suffering of Vietnamese, Cambodians, Afghans, Ethiopians, and Guatemalans under proxy wars was all too real. But neither NATO as an organization nor (except in the last French and British colonial wars) any non-U.S. NATO country was involved in those wars; and rightly so, for their military contribution would have been insignificant, and the resulting domestic protests would have torn their societies apart. So while the existence of NATO may have helped deter the USSR from aggression — or at least heavy political pressure on Western Europe — NATO did not actually have to do anything.
  • The disastrous role of NATO in international affairs began when the end of the Cold War and the collapse of Soviet power gave NATO the chance to do something, and the fear that otherwise it would be abolished gave it the motive to do so
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  • we may be sure that without Washington to encourage their ambitions and save them from the consequences, even the most expansionist European members of NATO will in fact be very glad to do nothing
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