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Ed Webb

Imperialist appropriation in the world economy: Drain from the global South through une... - 0 views

  • Unequal exchange theory posits that economic growth in the “advanced economies” of the global North relies on a large net appropriation of resources and labour from the global South, extracted through price differentials in international trade.
  • Our results show that in 2015 the North net appropriated from the South 12 billion tons of embodied raw material equivalents, 822 million hectares of embodied land, 21 exajoules of embodied energy, and 188 million person-years of embodied labour, worth $10.8 trillion in Northern prices – enough to end extreme poverty 70 times over.
  • Historians have demonstrated that the rise of Western Europe depended in large part on natural resources and labour forcibly appropriated from the global South during the colonial period, on a vast scale. Spain extracted gold and silver from the Andes, Portugal extracted sugar from Brazil, France extracted fossil fuels, minerals and agricultural products from West Africa, Belgium extracted rubber from the Congo; and Britain extracted cotton, opium, grain, timber, tea and countless other commodities from its colonies around the world – all of which entailed the exploitation of Southern labour on coercive terms, including through mass enslavement and indenture. This pattern of appropriation was central to Europe’s industrial growth, and to financing the expansion and industrialization of European settler colonies, including Canada, Australia, New Zealand and the United States, which went on to develop similarly imperialist orientations toward the South
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  • Our analysis confirms that unequal exchange is a significant driver of global inequality, uneven development, and ecological breakdown.
  • Today, we are told, the world economy functions as a meritocracy: countries that have strong institutions, good markets, and a steadfast work ethic become rich and successful, while countries that lack these things, or which are hobbled by corruption and bad governance, remain poor. This assumption underpins dominant perspectives in the field of international development (Sachs, 2005, Collier, 2007, Rostow, 1990, Moyo, 2010, Calderisi, 2007, Acemoglu and Robinson, 2012), and is reinforced by the rhetoric, common among neoclassical economists, that free-trade globalization has created an “even playing field”.
  • Emmanuel and Amin argued that unequal exchange enables a “hidden transfer of value” from the global South to the global North, or from periphery to core, which takes place subtly and almost invisibly, without the overt coercion of the colonial apparatus and therefore without provoking moral outrage. Prices are naturalized on the grounds that they represent “utility”, or “value”, or the outcome of “market mechanisms” such as supply and demand, obscuring the extent to which they are determined by power imbalances in the global political economy. Price differentials in international trade therefore function as an effective method of maintaining the patterns of appropriation that once overtly defined the colonial economy, allowing blame for “underdevelopment” to be shifted onto the victims.
  • Historians have demonstrated that the rise of Western Europe depended in large part on natural resources and labour forcibly appropriated from the global South during the colonial period, on a vast scale. Spain extracted gold and silver from the Andes, Portugal extracted sugar from Brazil, France extracted fossil fuels, minerals and agricultural products from West Africa, Belgium extracted rubber from the Congo; and Britain extracted cotton, opium, grain, timber, tea and countless other commodities from its colonies around the world – all of which entailed the exploitation of Southern labour on coercive terms, including through mass enslavement and indenture. This pattern of appropriation was central to Europe’s industrial growth, and to financing the expansion and industrialization of European settler colonies, including Canada, Australia, New Zealand and the United States, which went on to develop similarly imperialist orientations toward the South (e.g., Naoroji, 1902, Pomeranz, 2000, Beckert, 2015, Moore, 2015, Bhambra, 2017, Patnaik, 2018, Davis, 2002).
  • for every unit of embodied resources and labour that the South imports from the North they have to export many more units to pay for it, enabling the North to achieve a net appropriation through trade. This dynamic was theorized by Emmanuel (1972) and Amin (1978) as a process of “unequal exchange”.Emmanuel and Amin argued that unequal exchange enables a “hidden transfer of value” from the global South to the global North, or from periphery to core, which takes place subtly and almost invisibly, without the overt coercion of the colonial apparatus and therefore without provoking moral outrage. Prices are naturalized on the grounds that they represent “utility”, or “value”, or the outcome of “market mechanisms” such as supply and demand, obscuring the extent to which they are determined by power imbalances in the global political economy. Price differentials in international trade therefore function as an effective method of maintaining the patterns of appropriation that once overtly defined the colonial economy, allowing blame for “underdevelopment” to be shifted onto the victims.
  • Following Dorninger et al. (2021), we use a “footprint” analysis of input–output data to quantify the physical scale of raw materials, land, energy and labour embodied in trade between the North and South, looking not only at traded goods themselves but also the upstream resources and labour that go into producing and transporting those goods, including the machines, factories, infrastructure, etc.
  • Grounding our analysis in the physical dimensions of unequal exchange is important for several reasons. First, these resources – raw materials, land, labour and energy – embody the productive potential that is required for meeting human needs (use-value) and for generating economic growth (exchange-value). Physical drain is therefore ultimately what drives global inequalities in terms of access to provisions, as well as in terms of GDP or income (see Hornborg, 2020). Second, this approach allows us to maintain sight of the ecological impacts of unequal exchange. We know that excess energy and material consumption in high-income nations, facilitated by appropriation from the rest of the world, is causing ecological breakdown on a global scale. Tracing flows of resources embodied in trade allows us to determine the extent to which Northern appropriation is responsible for ecological impacts in the South; i.e., ecological debt (Roberts and Parks, 2009, Warlenius et al., 2015, Hornborg and Martinez-Alier, 2016).
  • Due to the growing fragmentation of international commodity chains, monetary databases on bilateral gross trade flows have been criticised for not accurately depicting the monetary interdependencies between national economies (Johnson and Noguera, 2012), i.e., the amount of a countries’ value added that is induced by foreign final demand and international trade relations. Trade in Value Added (TiVA) indicators Johnson and Noguera, 2012, Timmer et al., 2014 are designed to take into account the complexity of the global economy. The TiVA concept is motivated by the fact that, in monetary terms, trade in intermediates accounts for approximately two-thirds of international trade. Imports (of intermediates) are used to produce exports and hence bilateral gross exports may include inputs (i.e., value added) from third party countries (Stehrer, 2012). TiVA reveals where (e.g., in which country or industry) and how (e.g. by capital or labour) value is added or captured in global commodity chains (Timmer et al., 2014).
  • TiVA, which is sometimes referred to as the “value footprint”, is the monetary counterpart of the MRIO-based environmental footprint because both indicators follow the same system boundaries, i.e., all supply chains between production and final consumption of two countries including all direct and indirect interlinkages. Moreover, in contrast to global bilateral monetary trade flows, TiVA is globally balanced, meaning that national exports and imports globally sum up to zero. This is an important feature of the TiVA indicator that facilitates more consistent and unambiguous assessments.
  • for every unit of embodied raw material equivalent that the South imports from the North, they have to export on average five units to “pay” for it
  • For land the average ratio is also 5:1, for energy it is 3:1, and for labour it is 13:1
  • Table 1. Resource drain from the South.ResourceNorth → South flows 2015South → North flows 2015Drain from South in 2015Cumulative drain from South 1990–2015Raw material equivalents [Gt]3.3715.3912.02254.40Embodied land [mn ha]527.421,349.01821.5932,987.23Embodied energy [EJ]21.5543.5121.06650.34Embodied labour [mn py-eq]31.11219.22188.125,956.62
  • in the year 2015 the North’s net appropriation from the South totalled 12 billion tons of raw materials, 822 million hectares of land, 21 exajoules of energy (equivalent to 3.4 billion barrels of oil), and 188 million person-years equivalents of labour (equivalent to 392 billion hours of work). By net appropriation we mean that these resources are not compensated in equivalent terms through trade; they are effectively transferred gratis. And this appropriation is not insignificant in scale; on the contrary, it comprises a large share (on average about a quarter) of the North’s total consumption.
  • significant consequences for the global South, in terms of lost use-value. This quantity of Southern raw materials, land, energy and labour could be used to provision for human needs and develop sovereign industrial capacity in the South, but instead it is mobilized around servicing consumption in the global North.
  • Eight hundred and twenty-two million hectares of land, which is twice the size of India, would in theory be enough to provide nutritious food for up to 6 billion people, depending on land productivity and diet composition
  • material use is tightly linked to environmental pressures. It accounts for more than 90% of variation in environmental damage indicators (Steinmann et al., 2017), and more than 90% of biodiversity loss and water stress (International Resource Panel, 2019). Moreover, as Van der Voet et al. (2004) demonstrate, while impacts vary by material, and vary as technologies change, there is a coupling between aggregate mass flows and ecological impact. Net flows of material resources from South to North mean that much of the impact of material consumption in the North (43% of it, net of trade) is suffered in the South. The damage is offshored.
  • Industrial ecologists hold that global extraction and use of materials should not exceed 50 billion tons per year (Bringezu, 2015). In 2015, the global economy was using 87 billion tons per year, overshooting the boundary by 74% and driving ecological breakdown. This overshoot is due almost entirely to excess resource consumption in global North countries. The North consumed 26.71 tons of materials per capita in 2015, which is roughly four times over the sustainable threshold (6.80 tons per capita in 2015). Our results indicate that most of the North’s excess consumption (58% of it) is sustained by net appropriation from the global South; without this appropriation, material use in high-income nations would be much closer to the sustainable level.
  • In consumption-based terms, the North is responsible for 92% of carbon dioxide emissions in excess of the planetary boundary (350 ppm atmospheric concentration of CO2) (Hickel, 2020), while the consequences harm the South disproportionately, inflicting dramatic social and economic costs (Kikstra et al., 2021b, Srinivasan et al., 2008). The South suffers 82–92% of the costs of climate change, and 98–99% of the deaths associated with climate change (DARA, 2012)
  • Net appropriation of land means soil depletion, water depletion, and chemical runoff are offshored; net appropriation of energy means that the health impacts of particulate pollution are offshored; net appropriation of labour means that the negative social impacts of exploitation are offshored, etc (Wiedmann and Lenzen, 2018). In the case of non-renewable resources there is also a problem of depletion: resources appropriated from the South are no longer available for future generations to use (Costanza and Daly, 1992, World Bank, 2018), which is particularly problematic given that under conditions of net appropriation economic losses are not offset by investments in capital stock (cf. Hartwick, 1977). Finally, the extractivism that underpins resource appropriation generates social dislocations and conflicts at resource frontiers (Martinez-Alier, 2021).
  • the value of resources and labour cannot be quantified in dollars, and there is no such thing as a “correct” price.
  • Prices under capitalism do not reflect value or utility in any objective way. Rather, they reflect, among other things, the (im)balance of power between market agents (capital and labour, core and periphery, lead firms and their suppliers, etc); in other words, they are a political artefact
  • While prices by definition do not reflect value, they do allow us to compare the scale of drain to prevailing monetary representations of production and income in the world economy.
  • Fig. 2 shows that drain from the South in 2015 amounted to $14.1 trillion when measured in terms of raw material equivalents, $5.1 trillion when measured in terms of land, $3.6 trillion when measured in terms of energy and $20.3 trillion when measured in terms of labour.
  • Over the period 1990–2015, the drain sums to $242 trillion (constant 2010 USD). This represents a significant “windfall” for the North, similar to the windfall that was derived from colonial forms of appropriation; i.e., goods that did not have to be produced on the domestic landmass or with domestic labour, and did not have to be bought on the domestic market, or paid for with exports (see Pomeranz, 2000, Patnaik, 2018). While previous studies have shown that the price distortion factor increased dramatically during the structural adjustment period in the 1980’s (Hickel et al., 2021), our data confirms that since the early- to mid-1990’s it has tended to decline slightly. This means that the increase in drain during the period 1990–2007, prior to the global financial crisis, was driven primarily by an increase in the volume of international trade rather than by an increase in price distortion.
  • Table 3 shows that, over the 1990–2015 period, resources appropriated from the South have been worth on average roughly a quarter of Northern GDP.
  • the North’s reliance on appropriation from the South has generally increased over the period (despite a significant drop after the global financial crisis), whereas the South’s losses as a share of total economic activity have generally decreased, particularly since 2003, due to an increase in South-South trading and higher domestic GDP creation or capture within the South, both driven largely by China
  • Aid flows create the powerful impression that rich countries give benevolently to poorer countries. But the data on drain through unequal exchange raises significant questions about this narrative.
  • net appropriation by DAC countries through unequal exchange from 1990 to 2015 outstripped their aid disbursements over the same period by a factor of almost 80
  • for every dollar of aid that donors give, they appropriate resources worth 80 dollars through unequal exchange. From the perspective of aid recipients, for every dollar they receive in aid they lose resources worth 30 dollars through drain
  • The dominant narrative of international development holds that poor countries are poor because of their own internal failings and are therefore in need of assistance. But the empirical evidence on unequal exchange demonstrates that poor countries are poor in large part because they are exploited within the global economy and are therefore in need of justice. These results indicate that combating the deleterious effects of unequal exchange by making the global economy fairer and more equitable would be much more effective, in terms of development, than charity.
  • In an equitable world, the resource trade deficit that the North sustains in relation to the South would be financed with a parallel monetary trade deficit. But in reality, the monetary trade deficit is very small, equivalent to only about 1% of global trade revenues, and fluctuates between North and South. In effect, this means that the North achieves its large net appropriation of resources and labour from the South gratis.
  • The question of sectoral disparities has been moot since the 1980s, however, as industrial production has shifted overwhelmingly to the South. The majority of Southern exports (70%) consist of manufactured goods (data from UNCTAD; see Smith, 2016). Of all the manufactured goods that the USA imports, 60% are produced in developing countries. For Japan it is 70%. We can see this pattern reflected also in the industrial workforce. As of 2010, at least 79% of the world’s industrial workers live in the South (data from the ILO; see Smith, 2016). This shift is due in large part to the rise of global commodity chains, which now constitute 70% of international trade. Between 1995 and 2013, there has been an increase of 157 million jobs related to global commodity chains, and an estimated 116 million of them are concentrated in the South, predominantly in the export manufacturing sector (ILO, 2015). In other words, during the period we analyse in this paper (1990–2015), the South has contributed the majority of the world’s industrial production, including high-technology production such as computers and cars. And yet price inequalities remain entrenched.
  • if Northern states or firms leverage monopoly power within global commodity chains to depress the prices of imports and increase the prices of final products, their labour “productivity” appears to improve, and that of their counterparts declines, even if the underlying production process remains unchanged. Indeed, empirical evidence indicates that real productivity differences between workers are minimal, and cannot explain wage inequalities (Hunter et al., 1990).
  • wage inequalities exist not because Southern workers are less productive but because they are more intensively exploited, and often subject to rigid systems of labour control and discipline designed to maximize extraction (Suwandi et al., 2019). Indeed, this is a major reason why Northern firms offshore production to the South in the first place: because labour is cheaper per unit of physical output (Goldman, 2012).
  • the terminology of “value-added” is a misnomer. In international trade, TiVA does not tell us who adds more value but rather who has more power to command prices. And in the case of global commodity chains, TiVA does not indicate where value is produced but rather where it is captured (Smith, 2016).
  • our analysis reveals that value in global commodity chains is disproportionately produced by the South, but disproportionately captured by the North (as GDP). Value captured in this manner is misleadingly attributed to Northern economic activities
  • rich countries are able to maintain price inequalities simply by virtue of being rich. This finding supports longstanding claims by political economists that, all else being equal, price inequalities are an artefact of power. Just as in a national economy wage rates are an artefact of the relative bargaining power of labour vis-à-vis capital, so too in international trade prices are an artefact of the relative bargaining power of national economies and corporate actors vis-à-vis their trading partners and suppliers. Countries that grew rich during the colonial period are now able to leverage their economic dominance to depress the costs of labour and resources extracted from the South. In other words, the North “finances” net appropriation from the South not with money, but rather by maintaining the prices of Southern resources and labour below the global average level.
  • Patents play a key role here: 97% of all patents are held by corporations in high-income countries (Chang, 2008:141)
  • In some cases, patents involve forcing people in the South to pay for access to resources they might otherwise have obtained much more affordably, or even for free (Shiva, 2001, Shiva, 2016).
  • In the World Bank and the IMF, Northern states hold a majority of votes (and the US holds a veto), thus giving them control over key economic policy decisions. In the World Trade Organization (which controls tariffs, subsidies, and patents), bargaining power is determined by market size, enabling high-income nations to set trade rules in their own interests.
  • ubsidized agricultural exports from the North undermine subsistence economies in the South and contribute to dispossession and unemployment, placing downward pressure on wages. Militarized borders preclude easy migration from South to North, thus preventing wage convergence. Moreover, structural adjustment programs (SAPs) imposed by the World Bank and IMF since the 1980s have cut public sector salaries and employment, rolled back labour rights, curtailed unions, and gutted environmental regulations (Khor, 1995, Petras and Veltmeyer, 2002).
  • SAPs, bilateral free trade agreements, and the World Trade Organization have forced global South governments to remove tariffs, subsidies and other protections for infant industries. This prevents governments from attempting import substitution, which would improve their export prices and drive Northern prices down. Tax evasion and illicit financial flows out of the South (which total more than $1 trillion per year) drain resources that might otherwise be reinvested domestically, or which governments might otherwise use to build national industries. This problem is compounded by external debt service obligations, which drain government revenue and require obeisance to economic policies dictated by creditors (Hickel, 2017). In addition, structural dependence on foreign investors and access to Northern markets forces Southern governments and firms to compete with one another by cutting wages and resource prices in a race to the bottom.
  • structural power imbalances in the world economy ensure that labour and resources in the South remain cheap and accessible to international capital, while Northern exports enjoy comparatively higher prices
  • Cheap labour and raw materials in the global South are not “naturally” cheap, as if their cheapness was written in the stars. They are actively cheapened
  • the analysis obscures class and geographic inequalities within countries and regions, which are significant when it comes to labour prices as well as resource consumption. The high levels of resource consumption that characterize Northern economies are driven disproportionately by rich individuals and affluent areas, as well as by corporations that control supply chains, and enabled by internal patterns of exploitation and unequal exchange in addition to drain through trade (Harvey, 2005). For example, there are marginalized regions of the United States that serve as an “internal periphery” (Wishart, 2014). It would also be useful to explore the gender dynamics of unequal exchange within countries. These questions cannot be answered with our data, however.
  • This research confirms that the “advanced economies” of the global North rely on a large net appropriation of resources and labour from the global South, extracted through induced price differentials in international trade. By combining insights from the classical literature on unequal exchange with contemporary insights about global commodity chains and new methods for quantifying the physical scale of embodied resource transfers, we are able to develop a novel approach to estimating the scale and value of resource drain from the global South. Our results show that, when measured in Northern prices, the drain amounted to $10.8 trillion in 2015, and $242 trillion over the period from 1990 to 2015 – a significant windfall for the North, equivalent to a quarter of Northern GDP. Meanwhile, the South’s losses through unequal exchange outstrip their total aid receipts over the period by a factor of 30.
  • support contemporary demands for reparations for ecological debt, as articulated by environmental justice movements and by the G77
  • True repair requires permanently ending the unequal distribution of environmental goods and burdens between the global North and global South, restoring damaged ecosystems, and shifting to a regenerative economic system.
  • It is clear that official development assistance is not a meaningful solution to global poverty and inequality; nor is the claim that global South countries need more economic liberalisation and export-oriented market integration. The core problem is that low- and middle-income countries are integrated into the global economy on fundamentally unequal terms. Rectifying this problem is critical to ensuring that global South countries have the financial, physical and human resources they need to improve social outcomes.
  • democratize the institutions of global economic governance, such as the World Bank, IMF and WTO, so that global South countries have more control over trade and finance policy.
  • end the North’s use of unfair subsidies for agricultural exports, and remove structural adjustment conditions on international finance, which would help mitigate downward pressure on wages and resource prices in the South while at the same time enabling Southern countries to build sovereign industrial capacity
  • a global living wage system, and a global system of environmental regulations, would effectively put a floor on labour and resource prices
  • Reducing North-South price differentials would in turn reduce the scale of the North’s net resource appropriation from the South (in other words, it would reduce ecologically unequal exchange), thus reducing excess consumption in the North and the ecological impacts that it inflicts on the South.
  • Structural transformation will only be achieved through political struggle from below, including by the anti-colonial and environmental justice movements that continue to fight against imperialism today
Arabica Robusta

Samir Amin, "Russia and the Ukraine Crisis: The Eurasian Project in Conflict with the T... - 0 views

  • The authentic Russian socialist revolution produced a state socialism which was the only possible first step toward socialism; after Stalin that state socialism moved towards becoming state capitalism (explaining the difference between the two concepts is important but not the subject of this short paper).  As of 1991 state capitalism was dismantled and replaced by "normal" capitalism based on private property, which, as in all countries of contemporary capitalism, is basically the property of financial monopolies, owned by the oligarchy (similar to, not different from, the oligarchies running capitalism in the Triad), many coming out of the former nomenklatura, and some newcomers.
  • Neo-liberalism can produce for Russia only a tragic economic and social regression, a pattern of "lumpen development" and a growing subordinate status in the global imperialist order.  Russia would provide to the Triad oil, gas, and some other natural resources; its industries would be reduced to the status of sub-contracting for the benefit of Western financial monopolies. In such a position, which is not very far from that of Russia today in the global system, attempts to act independently in the international area will remain extremely fragile, threatened by "sanctions" which will strengthen the disastrous alignment of the ruling economic oligarchy to the demands of dominant monopolies of the Triad.  The current outflow of "Russian capital" associated with the Ukraine crisis illustrates the danger.  Re-establishing state control over the movements of capital is the only effective response to that danger.
Ed Webb

unctad.org | Africa could gain $89 billion annually by curbing illicit financial flows - 0 views

  • Every year, an estimated $88.6 billion, equivalent to 3.7% of Africa’s GDP, leaves the continent as illicit capital flight, according to UNCTAD’s Economic Development in Africa Report 2020.
  • these outflows are nearly as much as the combined total annual inflows of official development assistance, valued at $48 billion, and yearly foreign direct investment, pegged at $54 billion, received by African countries
  • From 2000 to 2015, the total illicit capital flight from Africa amounted to $836 billion. Compared to Africa’s total external debt stock of $770 billion in 2018, this makes Africa a “net creditor to the world”
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  • These outflows include illicit capital flight, tax and commercial practices like mis-invoicing of trade shipments and criminal activities such as illegal markets, corruption or theft.
  • IFFs represent a major drain on capital and revenues in Africa, undermining productive capacity and Africa’s prospects for achieving the Sustainable Development Goals (SDGs).
  • in African countries with high IFFs, governments spend 25% less than countries with low IFFs on health and 58% less on education
  • In Africa, IFFs originate mainly from extractive industries and are therefore associated with poor environmental outcomes.
  • The report shows that curbing illicit capital flight could generate enough capital by 2030 to finance almost 50% of the $2.4 trillion needed by sub-Saharan African countries for climate change adaptation and mitigation
  • Of the estimated $40 billion of IFFs derived from extractive commodities in 2015, 77% were concentrated in the gold supply chain, followed by diamonds (12%) and platinum (6%).
  • Specific data limitations affected efforts to estimate IFFs. Only 45 out of 53 African countries provide data to the UN International Trade Statistics Database (UN Comtrade) in a continuous manner allowing trade statistics to be compared over time.   The report highlights the importance of collecting more and better trade data to detect risks related to IFFs, increase transparency in extractive industries and tax collection.
  • Regional knowledge networks to enhance national capacities to tackle proceeds of money laundering and recover stolen assets, including within the context of the African Continental Free Trade Area (AfCFTA), are crucial in the fight against corruption and crime-related IFFs
  • Tax evasion is at the core of the world's shadow financial system. Commercial IFFs are often linked to tax avoidance or evasion strategies, designed to shift profits to lower-tax jurisdictions.
  • Nigeria’s President Muhammadu Buhari said: “Illicit financial flows are multidimensional and transnational in character. Like the concept of migration, they have countries of origin and destination, and there are several transit locations. The whole process of mitigating illicit financial flows, therefore, cuts across several jurisdictions.”
Ed Webb

Kleptocracy Is on the Rise in America - The Atlantic - 0 views

  • In the dying days of the U.S.S.R., Palmer had watched as his old adversaries in Soviet intelligence shoveled billions from the state treasury into private accounts across Europe and the U.S. It was one of history’s greatest heists.
  • Western banks waved Russian loot into their vaults. Palmer’s anger was intended to provoke a bout of introspection—and to fuel anxiety about the risk that rising kleptocracy posed to the West itself. After all, the Russians would have a strong interest in protecting their relocated assets. They would want to shield this wealth from moralizing American politicians who might clamor to seize it. Eighteen years before Special Counsel Robert Mueller began his investigation into foreign interference in a U.S. election, Palmer warned Congress about Russian “political donations to U.S. politicians and political parties to obtain influence.” What was at stake could well be systemic contagion: Russian values might infect and then weaken the moral defense systems of American politics and business.
  • Officials around the world have always looted their countries’ coffers and accumulated bribes. But the globalization of banking made the export of their ill-gotten money far more convenient than it had been—which, of course, inspired more theft. By one estimate, more than $1 trillion now exits the world’s developing countries each year in the forms of laundered money and evaded taxes.
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  • New York, Los Angeles, and Miami have joined London as the world’s most desired destinations for laundered money. This boom has enriched the American elites who have enabled it—and it has degraded the nation’s political and social mores in the process. While everyone else was heralding an emergent globalist world that would take on the best values of America, Palmer had glimpsed the dire risk of the opposite: that the values of the kleptocrats would become America’s own. This grim vision is now nearing fruition
  • in the days after the Twin Towers collapsed, George W. Bush’s administration furiously scoured Washington for ideas to jam into the 342-page piece of legislation that would become the patriot Act. A sense of national panic created a brief moment for bureaucrats to realize previously shelved plans. Title III of the patriot Act, the International Money Laundering Abatement and Anti-terrorist Financing Act, was signed into law little more than a month after September 11
  • If a bank came across suspicious money transferred from abroad, it was now required to report the transfer to the government. A bank could face criminal charges for failing to establish sufficient safeguards against the flow of corrupt cash. Little wonder that banks fought fiercely against the imposition of so many new rules, which required them to bulk up their compliance divisions—and, more to the point, subjected them to expensive penalties for laxity
  • nestled in the patriot Act lay the handiwork of another industry’s lobbyists. Every House district in the country has real estate, and lobbyists for that business had pleaded for relief from the patriot Act’s monitoring of dubious foreign transactions. They all but conjured up images of suburban moms staking for sale signs on lawns, ill-equipped to vet every buyer. And they persuaded Congress to grant the industry a temporary exemption from having to enforce the new law.The exemption was a gaping loophole—and an extraordinary growth opportunity for high-end real estate. For all the new fastidiousness of the financial system, foreigners could still buy penthouse apartments or mansions anonymously and with ease, by hiding behind shell companies set up in states such as Delaware and Nevada. Those states, along with a few others, had turned the registration of shell companies into a hugely lucrative racket—and it was stunningly simple to arrange such a Potemkin front on behalf of a dictator, a drug dealer, or an oligarch. According to Global Witness, a London-based anti-corruption NGO founded in 1993, procuring a library card requires more identification in many states than does creating an anonymous shell company.
  • Foreign Account Tax Compliance Act (fatca), legislation with moral clout that belies its stodgy name. Never again would a foreign bank be able to hold American cash without notifying the IRS—or without risking a walloping fine.
  • As the Treasury Department put it in 2017, nearly one in three high-end real-estate purchases that it monitors involves an individual whom the government has been tracking as “suspicious.” Yet somehow the presence of so many shady buyers has never especially troubled the real-estate industry or, for that matter, politicians. In 2013, New York City’s then-mayor, Michael Bloomberg, asked, “Wouldn’t it be great if we could get all the Russian billionaires to move here?”
  • the aluminum magnate Oleg Deripaska, a character who has made recurring cameos in the investigation of Russian interference in the 2016 presidential election. The State Department, concerned about Deripaska’s connections to Russian organized crime (which he has denied), has restricted his travel to the United States for years. Such fears have not stood in the way of his acquiring a $42.5 million mansion on Manhattan’s Upper East Side and another estate near Washington’s Embassy Row.
  • In 2016, Barack Obama’s administration tested a program to bring the real-estate industry in line with the banks, compelling brokers to report foreign buyers, too. The ongoing program, piloted in Miami and Manhattan, could have become the scaffolding for a truly robust enforcement regime. But then the American presidency turned over, and a landlord came to power. Obama’s successor liked selling condos to anonymous foreign buyers—and may have grown dependent on their cash
  • Around the time that Trump took up occupancy in the White House, the patriot Act’s “temporary” exemption for real estate entered its 15th year
  • Birkenfeld described how he had ensconced himself in the gilded heart of the American plutocracy, attending yacht regattas and patronizing art galleries. He would mingle with the wealthy and strike up conversation. “What I can do for you is zero,” he would say, and then pause before the punch line: “Actually, it’s three zeroes. Zero income tax, zero capital-gains tax, and zero inheritance tax.” Birkenfeld’s unsubtle approach succeeded wildly, as did his bank. As part of an agreement with the Justice Department, UBS admitted to hiding assets totaling some $20 billion in American money.
  • Nationwide, nearly half of homes worth at least $5 million, the Times found, were bought using shell companies. The proportion was even greater in Los Angeles and Manhattan
  • While the U.S. can ask almost any other nation’s banks for financial information about American citizens, it has no obligation to provide other countries with the same. “The United States had bullied the rest of the world into scrapping financial secrecy,” Bullough writes, “but hadn’t applied the same standards to itself.” A Zurich-based lawyer vividly spelled out the consequences to Bloomberg: “How ironic—no, how perverse—that the USA, which has been so sanctimonious in its condemnation of Swiss banks, has become the banking secrecy jurisdiction du jour … That ‘giant sucking sound’ you hear? It is the sound of money rushing to the USA.”
  • The behavior of the American elite changed too. Members of the professional classes competed to sell their services to kleptocrats
  • “They don’t send lawyers to jail, because we run the country … We’re still members of a privileged class in this country.”
  • Once upon a time, it might have been possible to think of Manafort as a grubby outlier in Washington—the lobbyist with the lowest standards, willing to take on the most egregious clients. But Mueller has exposed just how tightly tethered Manafort’s work on behalf of Ukrainian kleptocrats was to Washington’s permanent elite. Manafort subcontracted some of his lobbying to the firm of Tony Podesta, arguably the most powerful Democratic influence-peddler of his generation. And Manafort employed Mercury Public Affairs, where he dealt with Vin Weber, a former Republican congressman and a former chairman of the National Endowment for Democracy
  • The perils of corruption were an obsession of the Founders. In the summer of 1787, James Madison mentioned corruption in his notebook 54 times. To read the transcripts of the various constitutional conventions is to see just how much that generation worried about the moral quality of public behavior—and how much it wanted to create a system that defined corruption more expansively than the French or British systems had, and that fostered a political culture with higher ethical ambitions
  • The defining document of our era is the Supreme Court’s Citizens United decision in 2010. The ruling didn’t just legalize anonymous expenditures on political campaigns. It redefined our very idea of what constitutes corruption, limiting it to its most blatant forms: the bribe and the explicit quid pro quo. Justice Anthony Kennedy’s majority opinion crystallized an ever more prevalent ethos of indifference—the collective shrug in response to tax avoidance by the rich and by large corporations, the yawn that now greets the millions in dark money spent by invisible billionaires to influence elections.
  • American collusion with kleptocracy comes at a terrible cost for the rest of the world. All of the stolen money, all of those evaded tax dollars sunk into Central Park penthouses and Nevada shell companies, might otherwise fund health care and infrastructure. (A report from the anti-poverty group One has argued that 3.6 million deaths each year can be attributed to this sort of resource siphoning.) Thievery tramples the possibilities of workable markets and credible democracy. It fuels suspicions that the whole idea of liberal capitalism is a hypocritical sham: While the world is plundered, self-righteous Americans get rich off their complicity with the crooks.
  • The Founders were concerned that venality would become standard procedure, and it has. Long before suspicion mounted about the loyalties of Donald Trump, large swaths of the American elite—lawyers, lobbyists, real-estate brokers, politicians in state capitals who enabled the creation of shell companies—had already proved themselves to be reliable servants of a rapacious global plutocracy
  • by the time Vladimir Putin attempted to influence the shape of our country, it was already bending in the direction of his
Ed Webb

Twenty Years After We Shut Down the WTO, the Left Is Finally Resurgent - 0 views

  • Activists overestimated the WTO’s sway. As the Columbia economist and militant free-trader Jagdish Bhagwati told Liza Featherstone and me in an interview a couple of years later, the organization’s entire budget was smaller than the IMF’s travel budget, which should give you an idea of the two institutions’ relative importance. But it nonetheless served as something of a home address for global capitalism
  • the WTO scheduled its next major meeting for Doha, a site where riots seemed highly improbable, two years later. That 2001 meeting opened a trade round that continues to this day because no one can agree on anything still
  • Organized labor had, at least for this event, shunned the nationalist rhetoric of old in favor of international labor solidarity. A South African mineworker quoted Marx by name, urging the workers of the world to unite — to a great cheer from the crowd. There were jingoistic bleats from some Steelworkers and Teamsters, but it was largely contained.
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  • There was a modestly attended rally outside the city’s Labor Temple, where Nichols and I talked with a shirtless member of the Santa Cruz chapter of the Lesbian Avengers who said, “When we got here, the Steelworkers weren’t very queer-friendly. As the week wore on, they got more comfortable with us. My nipples stand in solidarity with the Steelworkers and Teamsters and all the laboring people!” A locked-out Kaiser Aluminum worker standing near her said: “A year ago I thought a redwood deck was the most beautiful thing in the world. Now I understand the importance of sustainability. I guess I’m an environmentalist now.” There’s nothing like common struggle to forge alliances among the most apparently unlikely people.
  • The Seattle-era left was heavy with philanthropists and the NGOs they funded. Critiques of capitalism were largely over size and style, never critiques of capitalism as a social system. “Globalization” was identified as the major problem, a word that always sounded like a euphemism for capitalism and imperialism, but those concepts were shunned as hopelessly antique. If you pointed out the euphemizing, you were red-baited.
  • Some of the spirit of Seattle animated the Occupy movement — the same aversion to structure, hierarchy, and agenda, the same belief that taking up public space could lead to some kind of durable social transformation. But as marvelous as it was in many ways, it couldn’t.
  • On a website put together by a group of DAN activists to memorialize the Seattle events, there’s a page listing the moment’s heirs: the fight against the Dakota Access Pipeline, the Movement for Black Lives, the migrant justice movement, struggles for gender self-determination, against the prison-industrial complex. All these are thoroughly admirable and worthy of support (though, not surprisingly, there’s no mention of the revival of socialism). But the whole approach seems a holdover from the days of hot-linked nodes and movements of movements.
Ed Webb

To Achieve the Sustainable Development Goals, the World Will Have to Think Local - 1 views

  • the post-World War II architecture is reaching its structural limits. In particular, it is incompatible with the achievement of the Sustainable Development Goals, the successor to the Millennium Development Goals, which are 17 objectives designed to bring sustainable development to every part of the world—notably the world’s developing nations and, in particular, the world’s least-developed countries. The new goals include completely eliminating global extreme poverty, managing sustainable production and consumption cycles, ending all forms of discrimination against women and girls, and strengthening resilience and adaptivity to hazards tied to climate change.
  • the current global financial architecture centers on sovereign states, with international credit and the benefits of such credit—notably the ability to raise capital in order to fund projects, including infrastructure—tending to flow to countries rather than to the neediest local communities themselves.
  • even if international donors and investors encourage better national governance, and they should, funding for local projects still competes, often unfavorably, with national government priorities—such as national defense, foreign affairs operations, government salaries, and national budget deficits
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  • In the era of the Sustainable Development Goals, local communities are almost always the lead development actor. In fact, a deeper examination of the goals’ underlying targets shows that almost 65 percent of them are supposed to be implemented by local governments. And yet the global financial architecture does not operate on that basis.
  • Around 80 percent of global GDP is already being generated in cities, while 68 percent of the total global population will be made up of urban residents by 2050, according to World Bank data
  • of the 1.4 billion-person increase in population projected to occur within developing countries by 2030, 96 percent are expected to live in urban areas. And 30 of the world’s 35 most rapidly growing cities are in the least-developed countries.
  • Relative to national governments, local governments are singularly positioned to advance projects to address climate change, including infrastructure projects for climate adaptation and resilience: They have the clearest understanding of local needs, they are able to convene local stakeholders to democratize the creation of a climate action plan, for example, and they can pass appropriate policies in much easier fashion than central governments.
  • cities are stuck between hoping that more money trickles down from the central government or accessing international credit. But in a nation-centric system, the second is often impossible
  • Under this nation-centric architecture, national debt determines whether cities can access international credit almost regardless of that city’s own debt profile
  • In Bangladesh, when cities were graded for credit at the local level, over a third of them attained a rating that was above investment grade. Yet those ratings make no difference, because Bangladeshi capital markets are not accessible by municipalities. The same is true for many cities in developing and least-developed countries, such as Kenya, Morocco, Botswana, and Indonesia.
  • between now and 2050, the urban population in sub-Saharan Africa is expected to more than triple, reaching approximately 1.3 billion people. Yet, barring fundamental changes, the region will likely lack the levels of capital investment necessary to finance development to support this population growth—including investment in infrastructure and urban planning, as well as commercial and residential real estate. If financing is not able to reach the local level, this will practically assure that the rise in urbanization in this part of the world, as well as others, will coincide with a rise in poverty—especially urban poverty and the growth of slums and unplanned communities—and its attendant consequences.
  • Urban areas can leverage their new capability and financial strength to help rural areas access international credit, whether by creating a pooled fund where urban and rural areas can issue a single bond or by collectively accessing thematic funds that focus on specific interests like climate change, women’s economic empowerment, or financial inclusion.
  • an independent municipal investment fund that will exclusively focus on delivering investment to local projects, notably in developing countries and particularly in the least-developed countries—the creation of which was supported by the United Nations Capital Development Fund, United Cities and Local Governments (an umbrella organization for local and regional governments around the world), and the Global Fund for Cities Development (their technical partner). The hope is that the successful investments will create demonstration effects that will incentivize public and private lenders to expand financing of the municipal finance space.
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.
  •  
    How to navigate shifting balance of power in Asia.
Ed Webb

Mining the Future - Foreign Policy - 0 views

  • No new phone, tablet, car, or satellite transferring your data at lightning speed can be made without certain minerals and metals that are buried in a surprisingly small number of countries, and for which few commonly found substitutes are available. Operating in niche markets with limited transparency and often in politically unstable countries, Chinese firms have locked up supplies of these minerals and metals with a combination of state-directed investment and state-backed capital, making long-term strategic plays, sometimes at a loss
  • unprecedented concentration of market power
  • “Made in China 2025,” aims to build strategic industries in national defense, science, and technology. To meet these objectives, in October 2016, the Ministry of Industry and Information Technology announced an action plan for its metals industry to achieve world-power status: By deploying state-owned enterprises and private firms to resource-rich hot spots around the globe, China would develop and secure other countries’ mineral reserves—including minerals in which China already holds a dominant position
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  • By directly acquiring mines, accumulating equity stakes in natural-resource companies, making long-term agreements to buy mines’ current or future production (known as “off-take agreements”), and investing in new projects under development, Chinese firms traded much-needed capital for outright control or influence over large shares of the global production of these resources. Despite China’s slowing growth and a major pullback in its foreign direct investment in other sectors, the government has maintained robust financial support for resource acquisition; mergers and acquisitions in metals and chemicals hit a record high in 2018.
  • China lacks significant reserves of three resources vital to its tech ambitions: cobalt, platinum-group metals, and lithium. It has successfully employed two strategies to secure control of them. One is driven by China’s state-owned enterprises (SOEs), which use development finance and infrastructure investment to embed themselves in higher-risk countries, establishing close ties with government leaders. The second is investment by state-linked private firms in market-based economies. Both strategies have shown agility and an ability to effectively adapt to local circumstances to achieve the same end.
  • Chile is home to 57 percent of the world’s known lithium reserves, the world’s largest known concentration, and SQM controls roughly half the country’s production
  • DRC is home to nearly two-thirds of the world’s cobalt production and half of its known reserves. Those resources are the prime target of investors for the booming battery industry. Over a decade of steady engagement, China has staked out a dominant position by developing strong political ties and investing in production assets and related infrastructure
  • China’s SOEs and private firms have made at least eight major equity and off-take plays in platinum-group metals in the Bushveld Complex. Such investments in South Africa’s highly concentrated and strategic resource deposits have helped make metals the country’s leading source of export growth, with nearly 50 percent of its metal exports going to China—tying South Africa’s economic welfare directly to Chinese investment.
  • the three countries where nearly 90 percent of global lithium production and more than three-quarters of the world’s known lithium reserves are located: Chile, Argentina, and Australia. In just six years, China has come to dominate the global market: More than 59 percent of the world’s lithium resources are now under its control or influence
  • China now owns or has influence over half of the DRC’s cobalt production, and has a massive stake in its mining industry. Six months ahead of the presidential elections, the event also sent a strong message to candidates about China’s deep investment in copper and cobalt mining—which constitutes 80 percent of the DRC’s export revenue and thousands of jobs—and its capacity to influence the future of the DRC’s economy
  • Natural resources are abundant in China; it is the No. 1 producer and processor of at least ten critical minerals and metals that are essential to high-tech industries and upon which China’s commercial and strategic competitors depend. To reinforce its strength, Chinese firms are acquiring mines and output from the next-largest producers and reserves, giving China both an economic edge in the next high-tech industrial revolution and increasing geopolitical power.
  • In a cash-strapped industry, Chinese firms are financing mine expansion and new development in exchange for a guaranteed supply of lithium in both mature and emerging markets. In Argentina, where President Mauricio Macri is eliminating mineral export taxes, reducing corporate tax rates, and allowing profit repatriation, China is establishing a dominant position in the nascent sector with “streaming deals,” which provide development capital in exchange for future lithium yields to help projects get off the ground. Chinese firms, led by Ganfeng, have stakes in 41 percent of the country’s major planned projects that account for 37 percent of Argentina’s reserves. This raw-material strategy is already coming to fruition: Lithium export volumes from Argentina to China rose nearly fourfold from 2015 to 2017, and China has secured access to the country's lithium for the longer term.
  • This same strategy, combined with asset acquisition, has also been successful in Australia, whose proximity to China, significant lithium reserves, and broad political support for mining investment have attracted Chinese investment. Tianqi and Ganfeng have established stakes in 91 percent of the lithium mining projects underway and 75 percent of the country’s reserves, including some of the world’s largest.
  • Though the final agreement included restrictions on Tianqi’s board and committee participation and its access to SQM’s sensitive data, Tianqi’s equity position still confers considerable influence over SQM.
  • Perhaps the best-known example both of China’s natural-resource dominance and its willingness to exploit it is rare-earth elements, a group of 17 elements that (despite their name) are commonly found, but rarely in concentrations that can be economically extracted. They are important materials for the defense, aerospace, electronics, and renewable energy industries. Over the past two decades China has produced more than 80 percent of the world’s production of rare-earth elements and processed chemicals. In 2010 it cut off exports to Japan amid rising tensions over the East China Sea, and the following year it imposed export quotas that threw governments and manufacturers into a panic. But with the exception of Japan, the attention to this critical vulnerability was short-lived, and little action was taken by other countries reliant on imports to diversify their resources or develop minerals action plans of their own.
  • China declared rare-earth elements a strategic resource in 1990 and prohibited foreign investment in the sector. Six state-owned enterprises control the industry, and the government cut production quotas in 2018 by 36 percent. With global demand for rare-earth elements projected at a compound average growth rate of more than 17 percent to 2025, a supply crunch is likely approaching—and China is already securing other nations’ supplies
  • While Russia strictly limits foreign participation in rare-earth element development, Chinese firms have accumulated off-take agreements and stakes in rare-earth element mines in Australia and Brazil
  • in 2017, China’s Shenghe Resources and two U.S. private equity firms acquired the sole U.S. and North American rare-earth element producer and processor, Molycorp, and its idled mining operations at Mountain Pass, California.
  • In 2016, China’s Yellow Dragon Holdings Ltd. co-invested with Bushveld Minerals, the primary vanadium developer in South Africa’s massive Bushveld Complex, to acquire Strategic Minerals, which owned the Vametco vanadium mine and plant. Yellow Dragon subsequently increased its investment in Bushveld Minerals and has become the fifth-largest shareholder. The holdings deepen China’s influence over South Africa’s vanadium resources and its role in the country’s emerging high-tech sector
  • China’s position is even stronger in graphite, a crystalline form of the element carbon whose high conductivity makes it a major component in electrodes, batteries, and solar panels, as well as industrial products such as steel and composites. For the last 20 years, China has been the leading global supplier of graphite, representing nearly 70 percent of the world’s production in 2018 and 24 percent of its reserves. While synthetic graphite, which is produced from petroleum coke, is an alternative, unfavorable economics constrain its use
  • New projects are concentrated in Mozambique, where the world’s largest graphite mine and fourth-largest known reserves are located. Already, Chinese firms have secured off-take agreements with the three major developers in Mozambique for the majority of their graphite production, and they are financing new development.
  • Japan is 90 percent reliant on China for its graphite
  • This resource consolidation could determine whether China is able to overcome the last major hurdle to achieving its ambitions: a competitive semiconductor industry.
  • Semiconductors can be pure elements or compounds and altered with impurities to improve their conductivity. Several materials are now being used to improve speed and performance, including rare-earth elements, graphite, indium, gallium, tantalum, and cadmium. China is the dominant producer of five out of the six, controls more than 75 percent of the world’s supply of three, and is consolidating control over them all
  • Should China succeed technologically, its capacity to scale production and flood markets (as it has already done with solar panels and wind turbines) has serious implications not only for leading semiconductor producers, but also for national security, if Chinese-manufactured chips are embedded in the devices upon which our data-driven lives, our economies, and our defense systems increasingly depend. While government and industry officials have started to restrict semiconductor sales and scrutinize Chinese acquisition of technology firms—e.g., the United States’ temporary ban on selling semiconductors to ZTE, or the recent flare-up over Huawei —such moves are strengthening China’s resolve to develop its domestic industry. More attention should be paid to its efforts to consolidate critical raw materials and the computing power they confer.
  • In April, U.S. government officials announced plans to meet with lithium industry leaders and automakers with the intention of developing a national electric-vehicle supply chain strategy. It is a start.
Ed Webb

Is Abdulla Yameen Handing Over the Maldives to China? - Foreign Policy - 0 views

  • China has emerged in recent years, because of its economic ascent, as a neocolonial practitioner of predatory economics, which is sparking a new Great Game in the Indo-Pacific. In the words of former Maldivian Foreign Minister Ahmed Naseem, “What is happening in the Maldives is not just about democracy, it is about peace, security, and stability in the entire Indian Ocean neighborhood.”
  • India has played a major role in helping build the Maldivian economy, as well as in underwriting political stability in the country. India backed the authoritarian President Maumoon Abdul Gayoom for several decades, even sending troops to preempt a 1988 military coup attempt
  • As has been the case in Pakistan, Sri Lanka, and elsewhere, an increasingly powerful and assertive China is melding its Belt and Road Initiative with its global maritime ambitions, throwing cash around to create dependent client states, and brazenly challenging India on New Delhi’s home turf, the Indian Ocean
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  • before 2012, Beijing didn’t even have an embassy in the Maldivian capital of Malé, given the smidgeon of diplomatic importance it assigned to the small atoll. Yet today, the country is awash with Chinese tourists, as well as large streams of Chinese foreign investment
  • $830 million upgrade of the airport, including a 1.3-mile bridge to link the airport island with the capital, which is a $400 million project
  • geo-economic clout
  • China has signed a free trade agreement with the Maldives and has “leased the uninhabited island Feydhoo Finolhu for tourism use for 50 years,”
  • hard economic power
  • “debt-for-leverage model is based on providing Chinese financial support for infrastructure projects in exchange for access to the natural resources of the beneficiary nation,”
  • 70 percent of the total Maldivian debt, and $92 million a year in payments to China, roughly 10 percent of the entire budget
  • often Belt and Road projects do not always serve economic but rather geo-strategic, grand motives
  • In Pakistan, Sri Lanka, and the Maldives, the Chinese have been busy building ports, which they say are only for civilian use. While it is premature to see a conspiratorial chain of Chinese military facilities, it is also difficult to conclude that they are unrelated to Chinese maritime ambitions
  • a state of emergency and arrest Supreme Court judges last month after they ruled for the release of opposition politicians
  • Yameen’s actions have also drawn ire from India, the traditional peacekeeper in the region, though it has yet to take any direct action in the country, despite former President Mohamed Nasheed’s call for Indian troops to help stabilize the conflict-wracked island
  • Japanese charges — complete with a video — that Maldivian tankers have been secretly transferring goods to North Korean-flagged ships in grotesque violation of U.N. Security Council sanctions
Ed Webb

The American Empire Is the Sick Man of the 21st Century - Foreign Policy - 0 views

  • classic Foundation series, Isaac Asimov imagines a Galactic Empire, governed from the city-world of Trantor, that has maintained peace and prosperity for thousands of years but that is teetering on the brink of decline. The only person who sees this clearly is the psychohistorian Hari Seldon, who has mathematically determined that the core conditions for the Empire are unsustainable and will crumble over the course of centuries. As Trantor “becomes more and more the administrative center of Empire, it becomes a greater prize,” a disciple says as he absorbs Seldon’s calculations. “As the Imperial succession becomes more and more uncertain, and the feuds among the great families more rampant, social responsibility disappears.” Asimov published these words in 1951, at the peak of U.S. global power. But they might as well be describing Washington in 2019, an imperial capital whose elite have transformed it into a great prize to be feuded over as surely as Asimov’s future empire did—and as other empires have done in the past.
  • much of the United States has experienced a steady decline while a handful of major cities, including Washington, have become hyperwealthy and almost unaffordable through the concentration of financial, tech, and media monopolies and their affiliated lobbyists. By now, many Americans know this story—but few think about what it means for their place in the world
  • The near-universal understanding of the United States as a powerful, unified global actor is flawed and in need of revision. The United States is less a great power exerting its will and more an open-air market for global corruption, in which outside powers can purchase influence, shape political outcomes, and play factions against each other in the service of their own competing agendas.
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  • Although Foundation drew its direct inspiration from Edward Gibbon’s The Decline and Fall of the Roman Empire, history is replete with examples of seemingly powerful empires run by weak, divided elites and picked apart by outside powers
  • Trump’s administration is openly bought by foreign governments via his international network of hotels and resorts, including the one located directly between the White House and the U.S. Capitol, where a Saudi-funded lobbyist rented 500 rooms in the month after the 2016 election. His political party, which still controls the Senate and increasingly dominates the judiciary, has no interest in holding him accountable for any of this. And of course there’s the small matter of Russian interference in the 2016 election; as the limited information known so far from special counsel Robert Mueller’s report confirms, Trump and the Republicans were at the very least the passive and willing beneficiaries of efforts by a foreign power to influence the election outcome.
  • the influence of outside money in Washington has become routine over the past generation. From the pervasive influence of the United Arab Emirates and other Gulf monarchies over think tanks and media organizations to virtually the entire U.S. government kowtowing before the American Israel Public Affairs Committee to China’s warm relationship with the Chamber of Commerce and with the heads of some of the most powerful U.S. companies to the funneling of foreign money through the real estate industries of the country’s largest and wealthiest cities—the U.S. government is for sale.
  • The complete deregulation of campaign finance and the subsequent legalization of corruption in Washington, on a scale unheard of in other developed countries, have resulted in a capital where the distinction between foreign and domestic monied interests is harder and harder to parse. The U.S. government, in other words, does not exist to serve the interests of Americans through either its foreign or its domestic policies; rather, it exists to perpetuate the interests of the globalized oligarchy.
  • While Rhodes and Obama also faced pressure from within the Washington establishment, they found their agenda for the Middle East repeatedly hijacked by foreign allies—the same governments that also lobbied, with varying success, for U.S. military operations from Syria to Yemen. American power, however mighty, means nothing if it’s being used for the ends of the highest bidders
  • what we’re seeing is neither a considered, responsible withdrawal from empire in order to invest in urgent needs at home nor a revolt against empire by the world’s wretched. Rather, it’s a drawn-out, decadent collapse recognizable to any student of Rome or Constantinople. America is the sick man of the 21st century, and anyone who has watched its president bumble through a gathering of bemused, pitying world leaders knows it.
Ed Webb

All Roads Need Not Lead To China - NOEMA - 0 views

  • For the Romans, Ottomans, Russians and British, transportation infrastructure was an essential tool of conquest. It is no different for China today. In a world of mostly settled boundaries, China seeks to control infrastructure and supply chains to achieve leverage over its neighbors as well as carve through them to its destination: the oil-rich Gulf region and the massive export markets of Europe. From oil refineries and ports to internet cables, China is maneuvering for infrastructural access where it cannot dominate territory. Even where China shifts boundaries by force, the purpose is nonetheless to pave the way for its infrastructure.
  • Around the time China joined the World Trade Organization in 2001, it suddenly found itself the world’s largest importer of raw materials as well as one of the largest exporters of consumer goods. Yet still, it was subject to the “Malacca trap”: Most of its trade passes through the narrow Strait of Malacca, the world’s busiest waterway, which it does not control. Building road and rail infrastructure across neighboring states was thus something of a defensive measure to reduce dependence on a single chokepoint.
  • Whereas the Soviet Union was not integrated into the global economy, China is the top trade partner of more than 120 countries, and is now the largest international creditor as well. China’s main instruments in pursuit of its grand strategy have been connectivity projects, not military incursions. Rather than conquer colonies, China has sought to buy countries. 
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  • a wide array of initiatives have emerged as a direct response to China’s Belt and Road to undermine and dilute China’s infrastructural prowess: the U.S. International Finance and Development Corporation, the EU’s “Asia Connectivity Initiative,” the EU-Japan “Partnership on Sustainable Connectivity and Quality Infrastructure,” the U.S.-Japan-Australia “Blue Dot Network,” the India-Japan “connectivity corridors” and myriad other coalitions. None of these existed even three years ago. Roads have always been the pathways of conquest; now they are the battlefield of competitive connectivity. 
  • A repeat of the Cold War would surely not play out as favorably for the U.S. as the last one. America is politically polarized and is the world’s largest debtor nation. Its most recent major wars have been disasters and its military needs time to rebuild and adjust to new adversaries and tactics. And many of its erstwhile allies from Europe to Asia are far more vested in China than America is and don’t trust it to lead a consensus-based global coalition.
  • Bogging down the adversary while moving stealthily towards one’s objective has been an axiom of Chinese diplomacy for generations. But there is little stealth anymore in China’s land grabs, island-building and wolf-warrior diplomacy
  • With China’s suppression of information about the coronavirus painting it into a corner, Beijing no longer feels it has anything to lose and is going for broke: moving on Taiwan, Hong Kong, the Senkaku Islands, India’s borders and other disputes while the rest of the world is off-kilter, girding itself for a new Cold War with America. China’s leadership has convinced itself that West-leaning powers seek to encircle it militarily, splinter it internally and destabilize the Communist Party. This is the classical psychological spiral at the heart of any security dilemma in which each action taken by one side elevates the perceived insecurity of the other. 
  • in dozens of visits to Beijing, I have found my interlocutors unable to grasp this basic psychological fact. While many societies admire China’s success and are grateful for China’s role in their development, none want to be like China, nor be subservient to it. It’s an argument that’s fallen on deaf ears in Washington, too. And as with America’s experience of benevolent nation-building, China’s policy of intimidating neighbors into feebly muting their own interests has predictably backfired
  • American strategists have been far more fixated on China’s presence in Africa and South America rather than developing a comprehensive strategy for reassuring China’s neighbors and supporting their own efforts to stand up to it.
  • What the U.S. and Europe do have in their favor is that they are territorially secure while China is not. China has 14 neighbors, all of which harbor deep suspicions of its motives even as many (especially Russia) cooperate with it.
  • Despite the immense economic leverage China has accrued vis-a-vis the many states along its perimeter, it is the complexity of having so many neighbors that constrains China more than its increasingly sophisticated military arsenal suggests. Maintaining global influence is much harder when you are fighting a 14-front war in your own neighborhood. 
  • From Malabar to Pearl Harbor, the U.S., Japan, Australia, India and numerous other countries have been deepening their coordination in the Indo-Pacific maritime domain. The “quad” coalition features joint strategic patrols and hardware support for the navies of Vietnam, the Philippines and Indonesia in the South China Sea. This summer, ASEAN foreign ministers finally graduated from their usually limp communiques watered down by Chinese pressure and reaffirmed that the U.N. Convention on the Law of the Sea must be the basis for arbitrating maritime disputes. 
  • Boundary agreements are rarely perceived as fair by both sides, yet such settlements have the virtue of enabling counties to mature towards functional cooperation.  
  • Precisely because the U.S. and EU have imposed such stiff restrictions on Chinese investment, China has redirected its outbound capital portfolio ever more towards its more proximate Asian domain. And in the wake of the COVID-19 crisis, once fast-growing countries face capital outflows and weak global demand amid ruptured supply chains. The West may be squeezing China out of some markets, but China’s balloon is inflating across Asia as it lowers tariffs on all its Belt and Road trading partners
  • Laos and Cambodia, two of Asia’s poorest countries, have become all but wholly owned subsidiaries of China, even as China’s Mekong River dams have ravaged their agriculture through volatile water flows and chemical pesticides. With stronger technical and diplomatic assistance, these countries could demand that Chinese investments reinforce their sustainability and local businesses. 
  • It was always going to be an uphill battle for China to be perceived as a benevolent superpower. Unlike America or the European Union, China is wholly unconvincing as a multiethnic empire. It systematically squelches diverse identities rather than elevating them. Furthermore, though China is an ancient and rich civilization, it coexists with other Asian civilizations with equally respectable glory. None will ever bow to the others, as Japan learned the hard way in the 20th century. Every time China gains an inch of territory, it loses a yard of credibility. The essence of geopolitical stability is equilibrium, and the pathway to it follows the logic of reciprocity. 
  • China’s assertiveness signals neither an inevitable new Cold War nor a new unipolar hegemony. Rather, it is one phase in Asia’s collective story and the global shift towards multipolarity.
  • Never has Eurasia been ruled by a single hegemon. The Mongols came closest 700 years ago, but the 14th-century Black Death fractured its disparate khanates, and the Silk Road fell idle. Today again, a pandemic has emerged from China, but rather than shut down the Silk Road, we should build many more of them among dozens of Eurasian nations rather than in and out of China alone. All roads need not lead to Beijing.
Ed Webb

Why the Pandemic Is So Bad in America - The Atlantic - 0 views

  • almost everything that went wrong with America’s response to the pandemic was predictable and preventable
  • sluggish response by a government denuded of expertise
  • Chronic underfunding of public health
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  • bloated, inefficient health-care system
  • Racist policies that have endured since the days of colonization and slavery left Indigenous and Black Americans especially vulnerable
  • decades-long process of shredding the nation’s social safety net
  • same social-media platforms that sowed partisanship and misinformation during the 2014 Ebola outbreak in Africa and the 2016 U.S. election became vectors for conspiracy theories
  • the COVID‑19 debacle has also touched—and implicated—nearly every other facet of American society: its shortsighted leadership, its disregard for expertise, its racial inequities, its social-media culture, and its fealty to a dangerous strain of individualism.
  • SARS‑CoV‑2 is neither as lethal as some other coronaviruses, such as SARS and MERS, nor as contagious as measles. Deadlier pathogens almost certainly exist. Wild animals harbor an estimated 40,000 unknown viruses, a quarter of which could potentially jump into humans. How will the U.S. fare when “we can’t even deal with a starter pandemic?,”
  • The U.S. cannot prepare for these inevitable crises if it returns to normal, as many of its people ache to do. Normal led to this. Normal was a world ever more prone to a pandemic but ever less ready for one. To avert another catastrophe, the U.S. needs to grapple with all the ways normal failed us
  • Many conservationists jump on epidemics as opportunities to ban the wildlife trade or the eating of “bush meat,” an exoticized term for “game,” but few diseases have emerged through either route. Carlson said the biggest factors behind spillovers are land-use change and climate change, both of which are hard to control. Our species has relentlessly expanded into previously wild spaces. Through intensive agriculture, habitat destruction, and rising temperatures, we have uprooted the planet’s animals, forcing them into new and narrower ranges that are on our own doorsteps. Humanity has squeezed the world’s wildlife in a crushing grip—and viruses have come bursting out.
  • This year, the world’s coronavirus experts—and there still aren’t many—had to postpone their triennial conference in the Netherlands because SARS‑CoV‑2 made flying too risky.
  • In 2003, China covered up the early spread of SARS, allowing the new disease to gain a foothold, and in 2020, history repeated itself. The Chinese government downplayed the possibility that SARS‑CoV‑2 was spreading among humans, and only confirmed as much on January 20, after millions had traveled around the country for the lunar new year. Doctors who tried to raise the alarm were censured and threatened. One, Li Wenliang, later died of COVID‑19. The World Health Organization initially parroted China’s line and did not declare a public-health emergency of international concern until January 30. By then, an estimated 10,000 people in 20 countries had been infected, and the virus was spreading fast.
  • it found a nation through which it could spread easily, without being detected
  • “By early February, we should have triggered a series of actions, precisely zero of which were taken.”
  • Even after warnings reached the U.S., they fell on the wrong ears. Since before his election, Trump has cavalierly dismissed expertise and evidence. He filled his administration with inexperienced newcomers, while depicting career civil servants as part of a “deep state.” In 2018, he dismantled an office that had been assembled specifically to prepare for nascent pandemics. American intelligence agencies warned about the coronavirus threat in January, but Trump habitually disregards intelligence briefings. The secretary of health and human services, Alex Azar, offered similar counsel, and was twice ignored.
  • countries “rely on bans to the exclusion of the things they actually need to do—testing, tracing, building up the health system,”
  • genetic evidence shows that the specific viruses that triggered the first big outbreaks, in Washington State, didn’t land until mid-February. The country could have used that time to prepare. Instead, Trump, who had spent his entire presidency learning that he could say whatever he wanted without consequence, assured Americans that “the coronavirus is very much under control,” and “like a miracle, it will disappear.” With impunity, Trump lied. With impunity, the virus spread.
  • A study showed that the U.S. could have averted 36,000 COVID‑19 deaths if leaders had enacted social-distancing measures just a week earlier. But better late than never: By collectively reducing the spread of the virus, America flattened the curve. Ventilators didn’t run out, as they had in parts of Italy. Hospitals had time to add extra beds.
  • Tests were in such short supply, and the criteria for getting them were so laughably stringent, that by the end of February, tens of thousands of Americans had likely been infected but only hundreds had been tested.
  • Sabeti’s lab developed a diagnostic test in mid-January and sent it to colleagues in Nigeria, Sierra Leone, and Senegal. “We had working diagnostics in those countries well before we did in any U.S. states,”
  • In response to the global energy crisis of the 1970s, architects made structures more energy-efficient by sealing them off from outdoor air, reducing ventilation rates. Pollutants and pathogens built up indoors, “ushering in the era of ‘sick buildings,’ ” says Joseph Allen, who studies environmental health at Harvard’s T. H. Chan School of Public Health. Energy efficiency is a pillar of modern climate policy, but there are ways to achieve it without sacrificing well-being. “We lost our way over the years and stopped designing buildings for people,”
  • The indoor spaces in which Americans spend 87 percent of their time became staging grounds for super-spreading events. One study showed that the odds of catching the virus from an infected person are roughly 19 times higher indoors than in open air. Shielded from the elements and among crowds clustered in prolonged proximity, the coronavirus ran rampant in the conference rooms of a Boston hotel, the cabins of the Diamond Princess cruise ship, and a church hall in Washington State where a choir practiced for just a few hours.
  • Between harsher punishments doled out in the War on Drugs and a tough-on-crime mindset that prizes retribution over rehabilitation, America’s incarcerated population has swelled sevenfold since the 1970s, to about 2.3 million. The U.S. imprisons five to 18 times more people per capita than other Western democracies. Many American prisons are packed beyond capacity, making social distancing impossible. Soap is often scarce. Inevitably, the coronavirus ran amok. By June, two American prisons each accounted for more cases than all of New Zealand. One, Marion Correctional Institution, in Ohio, had more than 2,000 cases among inmates despite having a capacity of 1,500.
  • America’s nursing homes and long-term-care facilities house less than 1 percent of its people, but as of mid-June, they accounted for 40 percent of its coronavirus deaths. More than 50,000 residents and staff have died. At least 250,000 more have been infected. These grim figures are a reflection not just of the greater harms that COVID‑19 inflicts upon elderly physiology, but also of the care the elderly receive. Before the pandemic, three in four nursing homes were understaffed, and four in five had recently been cited for failures in infection control. The Trump administration’s policies have exacerbated the problem by reducing the influx of immigrants, who make up a quarter of long-term caregivers.
  • the Department of Health and Human Services paused nursing-home inspections in March, passing the buck to the states. Some nursing homes avoided the virus because their owners immediately stopped visitations, or paid caregivers to live on-site. But in others, staff stopped working, scared about infecting their charges or becoming infected themselves. In some cases, residents had to be evacuated because no one showed up to care for them.
  • its problematic attitude toward health: “Get hospitals ready and wait for sick people to show,” as Sheila Davis, the CEO of the nonprofit Partners in Health, puts it. “Especially in the beginning, we catered our entire [COVID‑19] response to the 20 percent of people who required hospitalization, rather than preventing transmission in the community.” The latter is the job of the public-health system, which prevents sickness in populations instead of merely treating it in individuals. That system pairs uneasily with a national temperament that views health as a matter of personal responsibility rather than a collective good.
  • “As public health did its job, it became a target” of budget cuts,
  • Today, the U.S. spends just 2.5 percent of its gigantic health-care budget on public health. Underfunded health departments were already struggling to deal with opioid addiction, climbing obesity rates, contaminated water, and easily preventable diseases. Last year saw the most measles cases since 1992. In 2018, the U.S. had 115,000 cases of syphilis and 580,000 cases of gonorrhea—numbers not seen in almost three decades. It has 1.7 million cases of chlamydia, the highest number ever recorded.
  • In May, Maryland Governor Larry Hogan asserted that his state would soon have enough people to trace 10,000 contacts every day. Last year, as Ebola tore through the Democratic Republic of Congo—a country with a quarter of Maryland’s wealth and an active war zone—local health workers and the WHO traced twice as many people.
  • Compared with the average wealthy nation, America spends nearly twice as much of its national wealth on health care, about a quarter of which is wasted on inefficient care, unnecessary treatments, and administrative chicanery. The U.S. gets little bang for its exorbitant buck. It has the lowest life-expectancy rate of comparable countries, the highest rates of chronic disease, and the fewest doctors per person. This profit-driven system has scant incentive to invest in spare beds, stockpiled supplies, peacetime drills, and layered contingency plans—the essence of pandemic preparedness. America’s hospitals have been pruned and stretched by market forces to run close to full capacity, with little ability to adapt in a crisis.
  • “We’re designed for discrete disasters” like mass shootings, traffic pileups, and hurricanes, says Esther Choo, an emergency physician at Oregon Health and Science University. The COVID‑19 pandemic is not a discrete disaster. It is a 50-state catastrophe that will likely continue at least until a vaccine is ready.
  • American hospitals operate on a just-in-time economy. They acquire the goods they need in the moment through labyrinthine supply chains that wrap around the world in tangled lines, from countries with cheap labor to richer nations like the U.S. The lines are invisible until they snap. About half of the world’s face masks, for example, are made in China, some of them in Hubei province. When that region became the pandemic epicenter, the mask supply shriveled just as global demand spiked. The Trump administration turned to a larder of medical supplies called the Strategic National Stockpile, only to find that the 100 million respirators and masks that had been dispersed during the 2009 flu pandemic were never replaced. Just 13 million respirators were left.
  • The supply of nasopharyngeal swabs that are used in every diagnostic test also ran low, because one of the largest manufacturers is based in Lombardy, Italy—initially the COVID‑19 capital of Europe. About 40 percent of critical-care drugs, including antibiotics and painkillers, became scarce because they depend on manufacturing lines that begin in China and India. Once a vaccine is ready, there might not be enough vials to put it in, because of the long-running global shortage of medical-grade glass—literally, a bottle-neck bottleneck.
  • As usual, health care was a matter of capitalism and connections. In New York, rich hospitals bought their way out of their protective-equipment shortfall, while neighbors in poorer, more diverse parts of the city rationed their supplies.
  • Travel bans make intuitive sense, because travel obviously enables the spread of a virus. But in practice, travel bans are woefully inefficient at restricting either travel or viruses. They prompt people to seek indirect routes via third-party countries, or to deliberately hide their symptoms. They are often porous: Trump’s included numerous exceptions, and allowed tens of thousands of people to enter from China. Ironically, they create travel: When Trump later announced a ban on flights from continental Europe, a surge of travelers packed America’s airports in a rush to beat the incoming restrictions. Travel bans may sometimes work for remote island nations, but in general they can only delay the spread of an epidemic—not stop it.
  • the indiscriminate lockdown was necessary only because America’s leaders wasted months of prep time. Deploying this blunt policy instrument came at enormous cost. Unemployment rose to 14.7 percent, the highest level since record-keeping began, in 1948. More than 26 million people lost their jobs, a catastrophe in a country that—uniquely and absurdly—ties health care to employment
  • In the middle of the greatest health and economic crises in generations, millions of Americans have found themselves disconnected from medical care and impoverished. They join the millions who have always lived that way.
  • Elderly people, already pushed to the fringes of society, were treated as acceptable losses. Women were more likely to lose jobs than men, and also shouldered extra burdens of child care and domestic work, while facing rising rates of domestic violence. In half of the states, people with dementia and intellectual disabilities faced policies that threatened to deny them access to lifesaving ventilators. Thousands of people endured months of COVID‑19 symptoms that resembled those of chronic postviral illnesses, only to be told that their devastating symptoms were in their head. Latinos were three times as likely to be infected as white people. Asian Americans faced racist abuse. Far from being a “great equalizer,” the pandemic fell unevenly upon the U.S., taking advantage of injustices that had been brewing throughout the nation’s history.
  • Of the 3.1 million Americans who still cannot afford health insurance in states where Medicaid has not been expanded, more than half are people of color, and 30 percent are Black.* This is no accident. In the decades after the Civil War, the white leaders of former slave states deliberately withheld health care from Black Americans, apportioning medicine more according to the logic of Jim Crow than Hippocrates. They built hospitals away from Black communities, segregated Black patients into separate wings, and blocked Black students from medical school. In the 20th century, they helped construct America’s system of private, employer-based insurance, which has kept many Black people from receiving adequate medical treatment. They fought every attempt to improve Black people’s access to health care, from the creation of Medicare and Medicaid in the ’60s to the passage of the Affordable Care Act in 2010.
  • A number of former slave states also have among the lowest investments in public health, the lowest quality of medical care, the highest proportions of Black citizens, and the greatest racial divides in health outcomes
  • As of early July, one in every 1,450 Black Americans had died from COVID‑19—a rate more than twice that of white Americans. That figure is both tragic and wholly expected given the mountain of medical disadvantages that Black people face
  • Native Americans were similarly vulnerable. A third of the people in the Navajo Nation can’t easily wash their hands, because they’ve been embroiled in long-running negotiations over the rights to the water on their own lands. Those with water must contend with runoff from uranium mines. Most live in cramped multigenerational homes, far from the few hospitals that service a 17-million-acre reservation. As of mid-May, the Navajo Nation had higher rates of COVID‑19 infections than any U.S. state.
  • Americans often misperceive historical inequities as personal failures
  • the largely unregulated, social-media-based communications infrastructure of the 21st century almost ensures that misinformation will proliferate fast. “In every outbreak throughout the existence of social media, from Zika to Ebola, conspiratorial communities immediately spread their content about how it’s all caused by some government or pharmaceutical company or Bill Gates,”
  • Rumors coursed through online platforms that are designed to keep users engaged, even if that means feeding them content that is polarizing or untrue. In a national crisis, when people need to act in concert, this is calamitous. “The social internet as a system is broken,” DiResta told me, and its faults are readily abused.
  • Like pandemics, infodemics quickly become uncontrollable unless caught early.
  • In 2016, when DiResta spoke with a CDC team about the threat of misinformation, “their response was: ‘ That’s interesting, but that’s just stuff that happens on the internet.’ ”
  • The WHO, the CDC, and the U.S. surgeon general urged people not to wear masks, hoping to preserve the limited stocks for health-care workers. These messages were offered without nuance or acknowledgement of uncertainty, so when they were reversed—the virus is worse than the flu; wear masks—the changes seemed like befuddling flip-flops.
  • the United States underperformed across the board, and its errors compounded. The dearth of tests allowed unconfirmed cases to create still more cases, which flooded the hospitals, which ran out of masks, which are necessary to limit the virus’s spread. Twitter amplified Trump’s misleading messages, which raised fear and anxiety among people, which led them to spend more time scouring for information on Twitter.
  • By tying career advancement to the publishing of papers, academia already creates incentives for scientists to do attention-grabbing but irreproducible work. The pandemic strengthened those incentives by prompting a rush of panicked research and promising ambitious scientists global attention.
  • In March, a small and severely flawed French study suggested that the antimalarial drug hydroxychloroquine could treat COVID‑19. Published in a minor journal, it likely would have been ignored a decade ago. But in 2020, it wended its way to Donald Trump via a chain of credulity that included Fox News, Elon Musk, and Dr. Oz. Trump spent months touting the drug as a miracle cure despite mounting evidence to the contrary, causing shortages for people who actually needed it to treat lupus and rheumatoid arthritis. The hydroxychloroquine story was muddied even further by a study published in a top medical journal, The Lancet, that claimed the drug was not effective and was potentially harmful. The paper relied on suspect data from a small analytics company called Surgisphere, and was retracted in June.**
  • Science famously self-corrects. But during the pandemic, the same urgent pace that has produced valuable knowledge at record speed has also sent sloppy claims around the world before anyone could even raise a skeptical eyebrow.
  • No one should be shocked that a liar who has made almost 20,000 false or misleading claims during his presidency would lie about whether the U.S. had the pandemic under control; that a racist who gave birth to birtherism would do little to stop a virus that was disproportionately killing Black people; that a xenophobe who presided over the creation of new immigrant-detention centers would order meatpacking plants with a substantial immigrant workforce to remain open; that a cruel man devoid of empathy would fail to calm fearful citizens; that a narcissist who cannot stand to be upstaged would refuse to tap the deep well of experts at his disposal; that a scion of nepotism would hand control of a shadow coronavirus task force to his unqualified son-in-law; that an armchair polymath would claim to have a “natural ability” at medicine and display it by wondering out loud about the curative potential of injecting disinfectant; that an egotist incapable of admitting failure would try to distract from his greatest one by blaming China, defunding the WHO, and promoting miracle drugs; or that a president who has been shielded by his party from any shred of accountability would say, when asked about the lack of testing, “I don’t take any responsibility at all.”
  • Trump is a comorbidity of the COVID‑19 pandemic. He isn’t solely responsible for America’s fiasco, but he is central to it. A pandemic demands the coordinated efforts of dozens of agencies. “In the best circumstances, it’s hard to make the bureaucracy move quickly,” Ron Klain said. “It moves if the president stands on a table and says, ‘Move quickly.’ But it really doesn’t move if he’s sitting at his desk saying it’s not a big deal.”
  • everyday Americans did more than the White House. By voluntarily agreeing to months of social distancing, they bought the country time, at substantial cost to their financial and mental well-being. Their sacrifice came with an implicit social contract—that the government would use the valuable time to mobilize an extraordinary, energetic effort to suppress the virus, as did the likes of Germany and Singapore. But the government did not, to the bafflement of health experts. “There are instances in history where humanity has really moved mountains to defeat infectious diseases,” says Caitlin Rivers, an epidemiologist at the Johns Hopkins Center for Health Security. “It’s appalling that we in the U.S. have not summoned that energy around COVID‑19.”
  • People suffered all the debilitating effects of a lockdown with few of the benefits. Most states felt compelled to reopen without accruing enough tests or contact tracers. In April and May, the nation was stuck on a terrible plateau, averaging 20,000 to 30,000 new cases every day. In June, the plateau again became an upward slope, soaring to record-breaking heights.
  • It is no coincidence that other powerful nations that elected populist leaders—Brazil, Russia, India, and the United Kingdom—also fumbled their response to COVID‑19. “When you have people elected based on undermining trust in the government, what happens when trust is what you need the most?”
  • Drawn to novelty, journalists gave oxygen to fringe anti-lockdown protests while most Americans quietly stayed home. They wrote up every incremental scientific claim, even those that hadn’t been verified or peer-reviewed.
  • The virus was never beaten in the spring, but many people, including Trump, pretended that it was. Every state reopened to varying degrees, and many subsequently saw record numbers of cases. After Arizona’s cases started climbing sharply at the end of May, Cara Christ, the director of the state’s health-services department, said, “We are not going to be able to stop the spread. And so we can’t stop living as well.” The virus may beg to differ.
  • The long wait for a vaccine will likely culminate in a predictable way: Many Americans will refuse to get it, and among those who want it, the most vulnerable will be last in line.
  • It is almost unheard-of for a public-health measure to go from zero to majority acceptance in less than half a year. But pandemics are rare situations when “people are desperate for guidelines and rules,” says Zoë McLaren, a health-policy professor at the University of Maryland at Baltimore County. The closest analogy is pregnancy, she says, which is “a time when women’s lives are changing, and they can absorb a ton of information. A pandemic is similar: People are actually paying attention, and learning.”
  • As the economy nose-dived, the health-care system ailed, and the government fumbled, belief in American exceptionalism declined. “Times of big social disruption call into question things we thought were normal and standard,” Redbird told me. “If our institutions fail us here, in what ways are they failing elsewhere?” And whom are they failing the most?
  • It is hard to stare directly at the biggest problems of our age. Pandemics, climate change, the sixth extinction of wildlife, food and water shortages—their scope is planetary, and their stakes are overwhelming. We have no choice, though, but to grapple with them. It is now abundantly clear what happens when global disasters collide with historical negligence.
  • America would be wise to help reverse the ruination of the natural world, a process that continues to shunt animal diseases into human bodies. It should strive to prevent sickness instead of profiting from it. It should build a health-care system that prizes resilience over brittle efficiency, and an information system that favors light over heat. It should rebuild its international alliances, its social safety net, and its trust in empiricism. It should address the health inequities that flow from its history. Not least, it should elect leaders with sound judgment, high character, and respect for science, logic, and reason.
Ed Webb

Somalia is Set to Be Ravaged by the Coronavirus, and Terrorists Will Profit - 0 views

  • Somalia has been spinning on a crisis carousel: war, famine, terrorism, climate stress. Now, the coronavirus pandemic is set to steer the country towards another hemorrhaging of human life. Even with a youth population above 70 percent, the virus will likely compound Somalia’s chronic medley of miseries. With each passing day, an uneasy question looms large: If the pandemic has left such death and upheaval in its wake in the world’s most powerful countries, what impact will it have on one of the world’s most fragile?
  • a psychological readiness for catastrophe. Extreme violence has long been a fact of daily life in Mogadishu, under siege by one of the deadliest terrorist groups in Africa, al-Shabab, which, by conservative estimates, has killed more than 3,000 people in the past five years and wounded tens of thousands in the past decade. Somalis, often touted for their resilience amid unrelenting adversity, are no strangers to mass loss of life.
  • As of Monday, 1,054 infections—out of a miniscule testing pool—and 51 deaths have been confirmed. The true spread is doubtless far worse.
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  • Despite testing far less than its neighbors, Somalia has the highest death toll in East Africa. On April 17 and 18, 72 people were tested, out of which 55 were confirmed positive, a staggering 76 percent infection rate. Since this revelation, the Somali government has stopped sharing the numbers of people tested with the public.
  • Anecdotal accounts of COVID-19 symptoms and a spike in burials abound. “There is extraordinary community transmission. Infections and deaths are out of control,” explained a Mogadishu doctor on the condition of anonymity. “And why visit a hospital if they can’t treat you?” Somalia’s health infrastructure is mere scaffolding: scarce public hospitals struggling with a lack of equipment, unaccredited doctors in private facilities offering unaffordable services, and medication that is as low-grade as it is scarce.
  • Somalia’s best-equipped medical institution, Erdogan Hospital in Mogadishu, was shut down in April after 3 of its doctors were infected. Martini Hospital—kitted with 76 beds—is the only medical facility in the whole country designated to treat the infected
  • Answers to this acute health crisis lie in part with the government’s 2020 budget, which allocated $9.4 million for health spending, a mere 2 percent of the national budget. A whopping $146.8 million was reserved for security institutions—a telling indication of a cash-strapped state facing widespread security threats.
  • The group heralded the disease as divine punishment for the treatment of Muslims globally. Weaponizing the disease, al-Shabab ushered in Ramadan with an attempted vehicle-borne explosive attack at a military base on the first full day of the holy month.
  • Like the virus, al-Shabab transcends national borders and presents risks not only to Somalia but to its pandemic-weakened neighbors, particularly Kenya, which has weathered violent attacks from the group for years. Born out of a power vacuum itself, al-Shabab will capitalize on lapses in states’ security apparatus as governments redirect resources from preempting terror attacks to enforcing curfews
  • risks reversing critical security gains
  • Kenya’s northeastern towns lying on its border with Somalia have been particularly vulnerable to devastating al-Shabab attacks. In response to the illegal smuggling of people and goods from both Somalia and Ethiopia, Kenyan security authorities have recently ramped up aerial surveillance along its borders, in part, to curtail cross-border infection. Ethiopia’s health minister announced last week that 13 of its new cases were imported via illegal migration from Djibouti and Somalia
  • More than 80 percent of global trade passes through the Gulf of Aden
  • the resurgence of piracy can be expected
  • For more than a year now, the central government has been embroiled in a rancorous fight with two of its federal states. This being an election year, the fledgling Somali state finds itself at a critical juncture. It remains to be seen whether federal elections will be postponed, following in the footsteps of neighboring Ethiopia.
  • The specter of drought and famine, alongside the unforgiving plague of locusts that has ravaged crops in recent months
  • harrowing statistics from across Europe show that Somali communities have been disproportionately affected by COVID-19. In Sweden, Somalis are dying from the virus at “an astonishing high rate” according to the BMJ despite accounting for only 0.69 percent of the population. The World Bank is calling on governments to designate remittance companies as an essential service, a crucial step to easing restrictions on these financial flows.
  • The populations most at risk in Somalia are those living in the densely populated camps scattered across the country. More than 2.5 million internally displaced people live in these cramped conditions, already weakened by malnutrition and compromised immune systems, and with limited access to clean water, soap, or bathrooms.
  • According to the World Food Programme, the number of food-insecure people in East Africa is projected to reach up to 43 million in the next few months—more than double what it is now—sparking fears of conflict over scarce resources.
  • The disappearance of remittances—a lifeline for millions on the continent and estimated at $1.4 to $2 billion annually in Somalia alone—makes the situation all the more desperate. These critical cash flows have dried up as a global recession sets in and incomes of workers in the diaspora shrink.
  • deadly flash floods
  • will force more people to move, compounding the internal displacement crisis and heightening intercommunal tensions  even as it spreads the disease further
  • Border closures across the region have throttled migration flows, making it ever harder for people to escape conflict or starvation. This will simply force migration into the shadows, opening up avenues for human trafficking and exploitation. Irregular movement of refugees has already been observed across the Horn of Africa’s highly porous borders.
  • During  Friday prayers at Mogadishu’s Marwazi mosque on April 10, armed forces tried to forcibly disperse a congregation of worshippers without notice. A massive demonstration broke out, and shoulder-to-shoulder prayers continue across the country today
  • Riots swept the streets of Mogadishu again on April 24 in response to the fatal shooting of two innocent civilians by police as they tried to enforce a curfew. Ramadan, replete with nightly rounds of public taraweeh prayers, is likely to catalyze disease spread in the absence of clear communication with communities and Islamic leaders.
  • The virus demands self-sufficiency. Countries are forced to make do with their own systems, however broken.
  • government’s restrictions on press freedom and access to information about the novel coronavirus to the detriment of its own people
  • As has often been the case in the disaster-prone country, it will be up to grassroots community groups, the private sector, and members of the diaspora to mobilize en masse to contain the crisis.
  • Two officials at the Ministry of Health have already been arrested on corruption allegations related to COVID-19 response donations, denting public confidence.
  • With domestic flights suspended, it is all the more critical to invest in hospital and testing capacity across the country. This cannot be achieved without genuine collaboration between the federal government and its constituent member states.
Ed Webb

No trees: What the landscapes where all recent pandemics originated have in common - 0 views

  • yellow fever, zika fever, dengue, chikungunya, ebola, SARS, Nipah virus, Kyasanur Forest disease, MERS, rabies, Rocky Mountain spotted fever, sleeping sickness, hantavirus-caused diseases, Japanese encephalitis, malaria
  • All these diseases emerged – or re-emerged, more virulent and dangerous – as a result of human encroachment on forests. Historically, we might trace them to tropical rainforests, but right now we must look closer to home. Because the forest was, till very recently, right here somewhere, in and about your housing colony, around that gated high-rise and its adjacent slum.
  • Diseases emerge when we clear forests, cut down trees, flatten hills, dam rivers, and squat on all this usurped territory. Within a 5 km radius of my home are breeding grounds for at least seven of those listed diseases. It’s not something we think about.
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  • Many emerging diseases, like those listed above, are zoönoses – diseases transferred from other vertebrates. Their origins can usually be traced to wildlife. They may have stayed on, unnoticed, in the wild and never made the species jump to infect us if a stable ecosystem had been left undisturbed
  • The urban push into the forest forces bat populations to colonise human spaces and increases their vulnerability – and ours.
  • When a bat flies, its metabolic rate rises to meet the exorbitant energy demand of flight, and its body temperature spikes to a high fever. In all mammals, fever upticks the immune process and slows viral replication. As the only mammal capable of sustained flight, the bat has evolved this pattern of spiking body temperature. The benefit is a more efficient immune system.
  • bats don’t get sick. Not as often as they should, considering the range of viruses they harbour
  • Urbanisation provides new roosts, new sources of food and new company. Bats are sociable creatures. They form lasting relationships with home, and their urban circle of friends may embrace species that won’t roost together in the wild. And this commingling means a richer, more diversified stew of bat-borne viruses.
  • Bats also spend a great deal of time in torpor – a state of suspended animation, when the body’s temperature drops. Was it this that encouraged viruses to co-evolve the ability to flourish across a wide range of temperatures?
  • Coronaviruses are 30 per cent of the healthy bat’s virome. They cause diseases in other species – diarrhoeas and dysenteries; respiratory infections in cattle, dogs and swine; even peritonitis in cats. But before 2002, the worst illness they gave us humans was the common cold. Then, in 2002, SARS emerged. It had a death rate of 10 per cent. What had changed?
  • Words like “coincidental” and “fortuitous” have no place in the narrative of an emerging disease. Instead, we must look for the motive force, the driver that brought about disease. Southeast Asia has lost 30 per cent of its forests in recent years. The deforested land is intensively cultivated. Urban growth is invasive. This abrupt proximity between humans and bats allows greater exposure to the viruses shed in bat saliva and guano, and provides an environment conducive to a rapidly diversifying spectrum of viruses. And since bat coronaviruses cause infections in domesticated species, intermediate hosts are aplenty.
  • when there is a spillover, humans are immunologically naïve to the virus. This results in a virulent infection, and the virus quickly adapts to rapid spread between humans.
  • At present, there are thousands of coronaviruses circulating in bats. Just seven of them have declared themselves in humans. As crowding increases, more may emerge. Can we predict what the next one will be like?
  • The West has long jeered at Asia and Africa as “virus machines”. Such a label is deeply offensive to more than half the people on this planet, besides being scientifically untrue. Viruses are everywhere. Asia and Africa have been historically impoverished by European nations, either through genocide or colonisation. Disease was driven by conquest in the past, and racism in science is rooted in that memory. The language of science often echoes that inequality of power, and, thankfully, we’re growing more sensitive to it.
  • Disease is driven by capitalism today: the forests of Asia, Africa, Central and South Americas are enslaved to richer nations to produce goods that serve few and bankrupt millions.
Ed Webb

Degrowth is not austerity - it is actually just the opposite | Climate Crisis | Al Jazeera - 0 views

  • In this context of accelerating ecological breakdown and economic crises, the degrowth movement has steadily been gaining ground. Based on a robust body of scientific literature, degrowth proponents suggest that capitalism’s demand for unlimited growth is destroying the planet. Only degrowth policies can repair this by rapidly scaling back our material and energy use, slowing down production and transitioning to an economy focused around needs, care and the sharing of wealth.
  • In the 1990s, it was reintroduced as a “missile word” against the then-dominant ideology of sustainable development and green growth: an ideology that was being used by governments and international organisations to greenwash ineffective climate politics, attacks on public services and predatory lending.
  • Capitalism in the Anthropocene by Kohei Saito, a Japanese Marxist scholar, sold more than half a million copies and became a bestseller in Japan.
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  • degrowth has come under severe criticism from pundits, mainstream economists, and the jet-setting Davos elite
  • austerity is always imposed for the sake of growth. We have been convinced, for half a century now, that cutting public services is good for us because it will increase competitiveness, balance the budget, and eventually lead to growth. Degrowth, by contrast, is the argument that we can, and should, move away from an economy that exclusively depends on economic growth.
  • While austerity increases inequality by curbing public services and benefitting the rich through tax cuts and privatisation of government services, degrowth policies focus on democratising production, curbing the wealth and overconsumption of the rich, expanding public services, and increasing equality within and between societies.
  • Recessions make inequality worse, degrowth is about making sure everyone has their needs met. Recessions often cause bold policies for sustainability to be abandoned for the sake of restarting growth, while degrowth is explicitly for a rapid and decisive transformation.
  • Because profits are based on making labour and nature as cheap as possible, the very basis of profit is always at risk, for example, through labour shortages or supply bottlenecks. Thus, constant economic expansion will also see constant crises.
  • As argued by Naomi Klein in the book Shock Doctrine, crises are often taken advantage of by the owners of capital because they make it possible to thrash social and ecological legislation, thus lowering the costs of wages and resources, and further generating windfall profits through inflation.
  • infrastructure projects which will lock in fossil fuel use for decades continue to be built and expanded, while banks, energy companies and multinationals that are involved in polluting and carbon-intensive industries are bailed out with public money and given lucrative government contracts
  • A recent UN report found that nine out of 10 countries worldwide have fallen behind on life expectancy, education and living standards. For decades, international organisations have promised to fight global inequality and poverty with growth – but the results are anything but promising.
  • guarantee access to “universal basic services” like housing, food, healthcare, mobility, and childcare to the general population, by taking them out of the market.
  • Germany’s three-month experiment with a $9 monthly ticket for all regional and city public transport could serve as an example. It not only reduced carbon dioxide emissions by 1.8 million tonnes – equivalent to powering about 350,000 homes for a year – but it also helped mitigate the effects of high inflation rates, increased freedom of mobility for all, and was quite popular with the public.
  • a 2020 research paper on energy sufficiency found that it is possible to provide a decent life to the entire global population at 40 percent of current energy use, despite population growth until 2050.
  • reducing the excess energy and resource use of the rich and making designs more efficient within the framework of a truly circular economy have huge potential to reduce demand
  • many people would likely possess fewer material objects – but most would have access to better services and society would be more sustainable, just, convivial, and fulfilling
Ed Webb

Africa in the age of a new "Cold" War - by W. Gyude Moore - 0 views

  • In much of Africa, at least going by their leaders’ statements, there is a revulsion toward anything that forces a choice “for” or “against”. For many of these African countries, there was no “cold” war. Largely protected from the civil wars, murders, coups d’etat and breakdown of social order that wreaked havoc across the then “third world”, westerners are comfortable with referring to the period as a “cold” war, not because they do not acknowledge the proxy wars in former colonies, but because Western countries were not kinetic theaters. Having suffered no direct deaths and destruction, it’s not unreasonable to look favorably upon that period – a luxury many Africans cannot afford.
  • On current trends, over 80 percent of the world’s extreme poor will live in Africa by 2030. Intra-Africa trade has declined from 17 percent in the 1990s to 12.1 percent today. Foreign policy is a function of the domestic demands and the immediate environment. There is thus no incentive for African states to pursue a foreign policy of exclusion. China surpassed the United States as Africa’s largest trading partner 14 years ago. Two-way trade between China and Africa reached $282 billion last year, an 11% increase YoY. At about $40 billion, two-way trade between the US and Africa is about a fifth of China-Africa trade. It is difficult to imagine a material reduction in that economic relationship even under threat of US “punishment”.
  • The rise in China’s influence across lower- and middle-income countries did not come on the strength of Chinese ideology or the compelling logic of Chinese governance model – it has come on China’s ability to meet pressing needs in those economies, mainly infrastructure
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  • The US is still the world leader in supporting human capital development across the world. As we celebrate 20 years of PEPFAR history, it is important to recognize what an unrivaled achievement it has been. A world without PEPFAR is one of total carnage across the African continent. Over $100 billion in the fight against aids over those twenty years is the largest ever disbursement by any nation for the eradication of a single disease. US support through bilateral and multilateral channels for health, education and other social programs are crucial to the provision of those services across the developing world. It is the assumption that these acts are an argument for themselves that has left the US struggling for a narrative to “counter” its rivals. An estimated  $20  of the $55 billion commitment to Africa over the next three years will go toward health care – including pandemic preparedness and vaccine manufacturing. Without that scale of investment, we will measure the cost in lives and livelihoods across the continent. US human capital investment is thus complementary to China’s  hard infrastructure expertise. The insistence that one is better than the other or that China should reap no benefit (influence or otherwise) is ridiculous.
connelth

Muqtada al-Sadr's supporters storm Iraq's parliament - 0 views

  •  
    A state of high alert has been declared in the Iraqi capital Baghdad after protesters broke into the fortified Green Zone and stormed the parliament building, shortly after politicians again failed to approve new ministers.
Ed Webb

How Putin's worldview may be shaping his response in Crimea - 1 views

  • The recent literature on Putin is correctly in drawing attention to his pro-Soviet imperialistic views: remember, to Putin the collapse of the USSR the biggest geopolitical catastrophe of 20th century. But what exactly this pro-Soviet worldview means is fairly poorly understood. To get a grasp on one needs to check what Putin’s preferred readings are. Putin’s favorites include a bunch of Russian nationalist philosophers of early 20th century – Berdyaev, Solovyev, Ilyin — whom he often quotes in his public speeches. Moreover, recently the Kremlin has specifically assigned Russia’s regional governors to read the works by these philosophers during 2014 winter holidays. The main message of these authors is Russia’s messianic role in world history, preservation and restoration of Russia’s historical borders and Orthodoxy.
  • another Putin’s favorite that was rumored to be very popular in his close circles a few years ago: “The Third Empire: Russia that Ought to Be” by Michael Yuriev. It’s a utopian fantasy written as a history book from a perspective of a 2054 Latin American narrator. The book describes how 2054 world order was established, and the process has a striking resemblance with contemporary Ukrainian events. It begins with a Recovery period of 2000-12, when the Great Russia starts its resurgence under the rule of Vladimir II the Restorer. Importantly the First Expansion that leads to reunification of significant territory occurs when Eastern and Southern Ukrainian regions rebel against west-organized Orange revolution (supported by western Ukraine). To help the revolting Ukrainians (that want to rejoin Russia) Vladimir II offers to include their Eastern territories into Russia. He then passes a referendum on those territories, and replaces the Russian Federation with the Russian Union (refer to the Custom Union) that also includes Belarus, Prednestrovie, Kazakhstan, Turkmenistan, South Ossetia and Abkhazia
  • Again, it may sound implausible but that is exactly what the late Harvard political scientist Samuel Huntington predicted in his book “The Clash of Civilizations and the Remaking of World Order“: alignments and wars among various civilizations — Western, Islamic, Chinese, Orthodox/Russian Latin etc. Notice that the Orthodox/Russian unity has already been restored in Russia. In response to the Ukrainian Church’s call to stop the Russian troops, Saturday a representative of Russia’s Orthodox Church suggested that Ukrainians shouldn’t resist the Russian military “peacekeepers.” Their mission – as was pointed out – is “to restore Russia’s historical unity.”
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  • This helps us to understand why western analysts keep misreading the motivation behind Putin’s actions. His reality is very different from the reality in which these analysts live. His goal is primarily to “recollect Russia’s historical territories” (which specific version of historical Russia he has in mind is for us to rediscover in the next episodes)
  • the concept of cultural clash has been deeply ingrained in the minds of today’s Russians
  • Surveys show that 88 percent of Kiev’s Euromaidan participants came from outside of the capital. Of those only half originated from the country’s western regions, while the other half came from the central and eastern Ukraine. Specifically as many as one fifth (20 percent) of protesters came from the eastern regions alone
  • country-level data is also against the Ukrainian cultural divide concept. A survey from the Razumkov Center, shows that as of late December 2013 an absolute majority of the population in both the Center (two thirds) and West (80 percent) of Ukraine supported the Euromaidan; this is in contrast to about 20-30 percent in the East and South. However, the share of population that did not express support for the Euromaidan protests remained undecided regarding the alternative option: not supporting the Maidan did not automatically equal supporting the Russian vector or Yanukovych
  • the preponderance of pro-Russia oriented media in the Russian-speaking East
  • these media actively emphasized the cultural divide. If anything, the notorious divide exists primarily within Eastern Ukraine alone
Ed Webb

Ha-Joon Chang: The net isn't as important as we think | Technology | The Observer - 0 views

  • The internet may have significantly changed the working patterns of people like you and me, but we are in a tiny minority. For most people, its effect is more about keeping in touch with friends and looking up things here and there. Economists have found very little evidence that since the internet revolution productivity has grown.
  • By liberating women from household work and helping to abolish professions such as domestic service, the washing machine and other household goods completely revolutionised the structure of society. As women have become active in the labour market they have acquired a different status at home – they can credibly threaten their partners that if they don't treat them well they will leave them and make an independent living. And this had huge economic consequences. Rather than spend their time washing clothes, women could go out and do more productive things. Basically, it has doubled the workforce.
  • we overestimate the internet and ignore its downsides. There's now so much information out there that you don't actually have time to digest it.In another chapter of the book, I talk about the American economist Herbert Simon, who argued that our problem now is that we have limited decision-making capability rather than too little information. If you try to find something on the internet, it's a deluge. And in terms of productivity, the internet has its drawbacks – for example, it makes it a lot easier to bunk off work.
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  • This idea that the internet is driving globalisation has enabled business leaders and politicians to get away with decisions made for their own self-interest, because people have been too ready to accept that things have to be like this.
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