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Ed Webb

Will a Global Depression Caused by the Coronavirus Pandemic Trigger Another World War? - 0 views

  • worth asking whether the combination of a pandemic and a major economic depression is making war more or less likely. What does history and theory tell us about that question?
  • neither plague nor depression make war impossible
  • But war could still be much less likely
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  • Because states often go to war out of sense of overconfidence (however misplaced it sometimes turns out to be), pandemic-induced pessimism should be conducive to peace.
  • even an impulsive and headstrong warmaker like Saudi Arabia’s Mohammed bin Salman has gotten more interested in winding down his brutal and unsuccessful military campaign in Yemen.
  • One familiar argument is the so-called diversionary (or “scapegoat”) theory of war. It suggests that leaders who are worried about their popularity at home will try to divert attention from their failures by provoking a crisis with a foreign power and maybe even using force against it. Drawing on this logic, some Americans now worry that President Donald Trump will decide to attack a country like Iran or Venezuela in the run-up to the presidential election and especially if he thinks he’s likely to lose.
  • This outcome strikes me as unlikely, even if one ignores the logical and empirical flaws in the theory itself. War is always a gamble, and should things go badly—even a little bit—it would hammer the last nail in the coffin of Trump’s declining fortunes. Moreover, none of the countries Trump might consider going after pose an imminent threat to U.S. security, and even his staunchest supporters may wonder why he is wasting time and money going after Iran or Venezuela at a moment when thousands of Americans are dying preventable deaths at home
  • states do not start wars unless they believe they will win a quick and relatively cheap victory. As John Mearsheimer showed in his classic book Conventional Deterrence, national leaders avoid war when they are convinced it will be long, bloody, costly, and uncertain. To choose war, political leaders have to convince themselves they can either win a quick, cheap, and decisive victory or achieve some limited objective at low cost. Europe went to war in 1914 with each side believing it would win a rapid and easy victory, and Nazi Germany developed the strategy of blitzkrieg in order to subdue its foes as quickly and cheaply as possible. Iraq attacked Iran in 1980 because Saddam believed the Islamic Republic was in disarray and would be easy to defeat, and George W. Bush invaded Iraq in 2003 convinced the war would be short, successful, and pay for itself.
  • Another familiar folk theory is “military Keynesianism.” War generates a lot of economic demand, and it can sometimes lift depressed economies out of the doldrums and back toward prosperity and full employment. The obvious case in point here is World War II, which did help the U.S economy finally escape the quicksand of the Great Depression. Those who are convinced that great powers go to war primarily to keep Big Business (or the arms industry) happy are naturally drawn to this sort of argument, and they might worry that governments looking at bleak economic forecasts will try to restart their economies through some sort of military adventure. I doubt it. It takes a really big war to generate a significant stimulus, and it is hard to imagine any country launching a large-scale war—with all its attendant risks—at a moment when debt levels are already soaring
  • Economic downturns can encourage war in some special circumstances, especially when a war would enable a country facing severe hardships to capture something of immediate and significant value. Saddam Hussein’s decision to seize Kuwait in 1990 fits this model perfectly:
  • Even conquering an oil-rich country—the sort of greedy acquisitiveness that Trump occasionally hints at—doesn’t look attractive when there’s a vast glut on the market
  • a sustained economic depression could make war more likely by strengthening fascist or xenophobic political movements, fueling protectionism and hypernationalism, and making it more difficult for countries to reach mutually acceptable bargains with each other
  • Nationalism, xenophobia, and authoritarian rule were making a comeback well before COVID-19 struck, but the economic misery now occurring in every corner of the world could intensify these trends and leave us in a more war-prone condition when fear of the virus has diminished.
  • launching a war has to be one of the least efficient methods available. The threat of war usually spooks investors too, which any politician with their eye on the stock market would be loath to do
  • The bottom line: Economic conditions (i.e., a depression) may affect the broader political environment in which decisions for war or peace are made, but they are only one factor among many and rarely the most significant. Even if the COVID-19 pandemic has large, lasting, and negative effects on the world economy—as seems quite likely—it is not likely to affect the probability of war very much, especially in the short term.
  • I can’t rule out another powerful cause of war—stupidity—especially when it is so much in evidence in some quarters these days
Ed Webb

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

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

The Islamic State Isn't Behind Syria's Amphetamine Trade, But the Regime Could Be - 0 views

  • Scientists first produced Captagon, the brand name of the drug fenethylline, in the 1960s to treat depression and children with attention deficit hyperactivity disorder. Two decades later, the World Health Organization banned the substance due its high potential for addiction, abuse, and other adverse health effects. But counterfeit Captagon—which is sometimes just a cocktail of amphetamines with no fenethylline—remains in demand on the black market in the Middle East.
  • pills intercepted in Salerno arrived on three ships from Latakia, a Syrian port, and Italian police quickly announced that the Islamic State was responsible for their production and shipment—allegedly to fund its global terrorism operations.
  • Global media outlets disseminated the information provided by the Italian police without questioning it, replicating misinformation without considering how a scattered group of Islamic State members could pull off such an operation—but the truth is, they probably didn’t
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  • more likely that the regime of Syrian President Bashar al-Assad has a hand in producing Captagon, reaping a profit that it can invest into its armed campaigns against civilians and damaging the health of many Syrians who are now addicted to amphetamines after years of war
  • “When Syria invaded Lebanon in the ’90s there were many reports showing the Syrian military were aiding and abetting hashish and opium production in the Bekaa Valley,”
  • Captagon production flourished in Syria after 2013, when a crackdown in neighboring Lebanon likely forced Hezbollah to relocate its drug production operations next door. The shift came at an opportune time for the Syrian regime, as it needed money to fund its military campaign against rebel groups
  • The majority of Syria’s Captagon production sites are in regime-held areas, according to Abu Ja’far, a former truck driver who worked between Homs, Rif-Dimashq, and Aleppo. “You only need some deserted homes and a few workers supervised by someone with strong connections,”
  • International organizations are unable to conduct research on the ground, meaning there is no concrete evidence linking the Assad regime to the Captagon trade. But sources say that strong protection would be required to produce, sell, and export the drugs from regime-held areas. “It was always possible in a country at war that those best placed to safely manufacture a drug in large quantities would be people in the regime … or in areas the regime were guaranteeing security,”
  • Last year, more than 33 million Captagon pills were seized in Greece after being shipped from regime-held Latakia. And in April this year, Saudi customs seized more than 44 million pills hidden in tea packaging from a company close to the Assad family.
  • At the height of its territorial control, the Islamic State was involved in the black market, trading looted antiquities, arms, and oil. But there is little evidence that the group ever produced Captagon—even if individual fighters used the drug on the battlefield. It would not have been sanctioned at the institutional level because of the group’s Salafism: Islamic State leaders punished people caught smoking or selling tobacco, making it unlikely they condoned the manufacturing of amphetamines.
  • Saudi Arabia has long been the No. 1 consumer of Captagon, which is popular among young and affluent partygoers. As conflict drags on in Libya, it is also possible the large shipment was destined for the port of Benghazi, with Europe as a transit point.
  • While much of the Captagon produced in Syria is destined for overseas markets, Syrians themselves suffer some of the worst damage from the trade. The worst-quality Captagon tablets are sold within Syria for as cheap as $1 per pill
  • Captagon is known to inhibit tiredness, hunger, and fear. But its use is now common among all demographics in Syria, not just fighters. The most common side effects include extreme depression, insomnia, malnutrition, and heart and blood toxicity
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
Ed Webb

How Goldman Sachs Created the Food Crisis - By Frederick Kaufman | Foreign Policy - 0 views

  • in 1999, the Commodities Futures Trading Commission deregulated futures markets. All of a sudden, bankers could take as large a position in grains as they liked, an opportunity that had, since the Great Depression, only been available to those who actually had something to do with the production of our food
  • After World War II, the United States was routinely producing a grain surplus, which became an essential element of its Cold War political, economic, and humanitarian strategies -- not to mention the fact that American grain fed millions of hungry people across the world
  • Futures markets traditionally included two kinds of players. On one side were the farmers, the millers, and the warehousemen, market players who have a real, physical stake in wheat. This group not only includes corn growers in Iowa or wheat farmers in Nebraska, but major multinational corporations like Pizza Hut, Kraft, Nestlé, Sara Lee, Tyson Foods, and McDonald's -- whose New York Stock Exchange shares rise and fall on their ability to bring food to peoples' car windows, doorsteps, and supermarket shelves at competitive prices. These market participants are called "bona fide" hedgers, because they actually need to buy and sell cereals. On the other side is the speculator. The speculator neither produces nor consumes corn or soy or wheat, and wouldn't have a place to put the 20 tons of cereal he might buy at any given moment if ever it were delivered. Speculators make money through traditional market behavior, the arbitrage of buying low and selling high. And the physical stakeholders in grain futures have as a general rule welcomed traditional speculators to their market, for their endless stream of buy and sell orders gives the market its liquidity and provides bona fide hedgers a way to manage risk by allowing them to sell and buy just as they pleased.
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  • Every time the due date of a long-only commodity index futures contract neared, bankers were required to "roll" their multi-billion dollar backlog of buy orders over into the next futures contract, two or three months down the line. And since the deflationary impact of shorting a position simply wasn't part of the GSCI, professional grain traders could make a killing by anticipating the market fluctuations these "rolls" would inevitably cause. "I make a living off the dumb money," commodity trader Emil van Essen told Businessweek last year. Commodity traders employed by the banks that had created the commodity index funds in the first place rode the tides of profit
  • dozens of speculative non-physical hedgers followed Goldman's lead and joined the commodities index game, including Barclays, Deutsche Bank, Pimco, JP Morgan Chase, AIG, Bear Stearns, and Lehman Brothers, to name but a few purveyors of commodity index funds. The scene had been set for food inflation that would eventually catch unawares some of the largest milling, processing, and retailing corporations in the United States, and send shockwaves throughout the world
  • Not only does the world's food supply have to contend with constricted supply and increased demand for real grain, but investment bankers have engineered an artificial upward pull on the price of grain futures. The result: Imaginary wheat dominates the price of real wheat, as speculators (traditionally one-fifth of the market) now outnumber bona-fide hedgers four-to-one.
  • a problem familiar to those versed in the history of tulips, dot-coms, and cheap real estate: a food bubble
  • when the global financial crisis sent investors running scared in early 2008, and as dollars, pounds, and euros evaded investor confidence, commodities -- including food -- seemed like the last, best place for hedge, pension, and sovereign wealth funds to park their cash. "You had people who had no clue what commodities were all about suddenly buying commodities," an analyst from the United States Department of Agriculture told me. In the first 55 days of 2008, speculators poured $55 billion into commodity markets, and by July, $318 billion was roiling the markets. Food inflation has remained steady since
  • The more the price of food commodities increases, the more money pours into the sector, and the higher prices rise
  • from 2005 to 2008, the worldwide price of food rose 80 percent -- and has kept rising
  • speculation has also created spikes in everything the farmer must buy to grow his grain -- from seed to fertilizer to diesel fuel
  • The average American, who spends roughly 8 to 12 percent of her weekly paycheck on food, did not immediately feel the crunch of rising costs. But for the roughly 2-billion people across the world who spend more than 50 percent of their income on food, the effects have been staggering: 250 million people joined the ranks of the hungry in 2008, bringing the total of the world's "food insecure" to a peak of 1 billion -- a number never seen before.
  • I asked a handful of wheat brokers what would happen if the U.S. government simply outlawed long-only trading in food commodities for investment banks. Their reaction: laughter. One phone call to a bona-fide hedger like Cargill or Archer Daniels Midland and one secret swap of assets, and a bank's stake in the futures market is indistinguishable from that of an international wheat buyer. What if the government outlawed all long-only derivative products, I asked? Once again, laughter. Problem solved with another phone call, this time to a trading office in London or Hong Kong; the new food derivative markets have reached supranational proportions, beyond the reach of sovereign law
  • nervous countries have responded instead with me-first policies, from export bans to grain hoarding to neo-mercantilist land grabs in Africa. And efforts by concerned activists or international agencies to curb grain speculation have gone nowhere. All the while, the index funds continue to prosper, the bankers pocket the profits, and the world's poor teeter on the brink of starvation
Ed Webb

Design For Corruption--Why US Healthcare is Failing - BusinessWeek - 0 views

  • I’ve lived all over the world, in countries that Americans often call “corrupt.” Peace Corps in The Philippines, journalism in Thailand, Argentina, China. But these days, the US is at least as, if not, more corrupt than any other nation I have lived or worked in.
  • The US has designed a corrupt political culture that undermines our meritocracy and makes a joke of the “public good.” Health care is the most glaring example.
  • Ditto for bank reform and Wall Street reform. Despite incredible irresponsibility that brought the US and the world to the brink of another Depression, the financial sectors have escape any serious re-regulation. Why? Lobbying. The World Economic Forum is starting a forum for designing large-scale social organizations. It should be with a case study of the US.
  •  
    What is striking about this opinion piece? Is this what you would expect to encounter in a Business Week blog? Is corruption always something that happens elsewhere, to other people?
Ed Webb

The Oil Drum | IEA Economist Warns about World Oil Supply - 0 views

  • the market power of the very few oil-producing countries that hold substantial reserves of oil – mostly in the Middle East – would increase rapidly as the oil crisis begins to grip after 2010
  • Many people think there will be a recovery in a few years' time but it will be a slow recovery and a fragile recovery and we will have the risk that the recovery will be strangled with higher oil prices.
  • demand after 2010 is expected to exceed dwindling supplies
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  • I fear that most governments, particularly members of the OECD, will waste time trying to downplay the possible ramifications of declining oil production and to assure the public that everything is under control.
Ed Webb

Global economy hit by deepest recession in 80 years despite massive stimulus measures - 0 views

  • Advanced economies will see economic activity shrink by 7% this year due to severe disruptions in domestic demand and supply, trade, and finance.  Emerging market and developing economies (EMDEs) are expected to shrink by 2.5% in 2020, their first contraction as a group in at least 60 years. As a result, per capita incomes are expected to decline by 3.6%, which will tip millions of people into extreme poverty this year.
  • the outlook remains highly uncertain as the downside risks are predominant, including a protracted pandemic, financial upheaval, and retreat from global trade and supply linkages
  • In a scenario where an additional three months of stringent lockdown measures are required, global output would shrink by almost 8 percent in 2020. Despite additional fiscal policy support, vulnerable firms would exit, vulnerable households would sharply curtail consumption, and travel would remain deeply depressed
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  • a stronger outcome remains possible. The predictable removal of pandemic-control measures, coupled with the rapid and unprecedented global policy response can trigger a rapid recovery in confidence and employment, unleashing pent-up demand. However, even with these positive developments, the contraction in global output of 3.7 percent in 2020 would still be about twice as deep as during the global recession of 2009
Ed Webb

U.S. Supply Chain Strategy Needs a Globalization Rethink to Beat China - 0 views

  • The capacity to manufacture drugs and active pharmaceutical ingredients has moved from the United States and Europe to developing countries in Asia where costs are lower and environmental regulations more relaxed. According to some widely cited estimates, the United States now imports virtually all of certain common antibiotics and over-the-counter pain medications from China, along with a high percentage of generic drugs used to treat HIV, depression, Alzheimer’s, and other ailments, and many of the active pharmaceutical ingredients used to make other medicines. Constriction of supply chains due to coronavirus-related shutdowns in China, further disruptions in global transportation networks, and a spike in worldwide demand for essential drugs could endanger the health of American citizens.
  • If trade were suspended due to a tense confrontation or an actual armed conflict, the United States might find it difficult, and perhaps impossible, to ramp up and sustain production of arms, munitions, weapons platforms, communications equipment, and other military systems.
  • Even before the current crisis, many companies had begun to diversify production away from China, shifting a portion of their manufacturing capacity to other countries. This movement was driven by the need to avoid U.S. tariffs, but also by longer-term trends, including rising Chinese wages and technological developments that are making it both desirable and cost-effective to shorten some supply chains, bringing producers closer to final consumers.
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  • greater awareness of the potential impact of natural as well as man-made shocks will accelerate tendencies not toward deglobalization but rather toward reglobalization: a reshuffling of supply chains and at least a partial reduction in the concentration of capacity inside China
  • The disruption caused by the pandemic creates an opportunity for U.S. policymakers to reassess and recalibrate their generally laissez-faire approach to globalization.
  • Another reason for attempting to shift existing supply chains and, in particular, for trying to preserve and expand domestic manufacturing capacity is that doing so could help boost the overall productivity, international competitiveness, and long-term growth prospects of the U.S. economy. That, in turn, would generate more of the aggregate resources necessary to sustain a protracted strategic competition with China, while at the same time enhancing the well-being of many American workers.
  • Even if the value-added from the final assembly of consumer goods is relatively small, from a strategic standpoint it would be preferable if the resulting gains accrued to the economies of U.S. friends and allies rather than to China. The physical relocation of some portion of existing supply chains could also help slow China’s efforts to extract sensitive technology through industrial espionage or coerced joint ventures.
  • Even a largely market-driven dispersion of supply chains and a lesser degree of concentration in China should help to reduce risks and increase resilience.
  • To the extent feasible, the United States should seek to source imports of critical goods from a trusted production network of facilities in friendly or allied countries, at least some of them located far from China.
  • During World War II and the opening stages of the Cold War, the federal government used the tax code in a focused fashion, extending the so-called rapid tax amortization privilege to promote expansion in sectors where resource requirement calculations revealed gaps that could stall defense mobilization. In the 1950s, federal agencies also used procurement guarantees to encourage the maintenance of capacity above anticipated market demand for certain minerals and machine tools by promising to buy a portion of the resulting output. Some of these were then placed in stockpiles for possible future use.
  • The U.S. government could use similar tools today if, for example, it wanted to expand the nation’s ability to manufacture personal protective equipment and ventilators, items that might be needed to combat the next pandemic.
  • Globalization is not an unstoppable natural force, propelled solely by technological progress and autonomous market forces; instead it is a man-made phenomenon with contours shaped by the choices of states as well as firms.
  • China’s emergence as an irresistibly attractive manufacturing platform was partly due to the sheer size of its working-age population and the falling costs of communication and transportation, but also due to deliberate government policies designed to aid in the acquisition of foreign intellectual property while keeping the cost of land, labor, and capital low and exchange rates favorable.
  • the migration of manufacturing capacity from the advanced industrial countries reflected not only the profit and loss calculations of individual companies but also the permissive policies of Western governments that concluded in effect (in the U.S. case) that what was good for Apple or 3M was good for the United States.
  • if it results in excessive dependence, an addiction to low costs can create serious commercial and strategic risks
  • There are obvious dangers here. Sharpened tools of trade and industrial policy can be abused by irresponsible leaders seeking to pander to voters and pay off supporters, or they may be captured and exploited by special interests.
Ed Webb

EU Policies Forced Refugees Back to War Libya. Now They're Stuck in Rwanda. - 0 views

  • the impacts of hardening European Union border policy, which forces refugees back to a dangerous country where they live at the mercy of Libyan militias
  • UNHCR said it had heard allegations of detainees being used as forced labor in the Gathering and Departure Facility, but it could not verify them.) In the months afterward, Alex returned to detention only for his meetings with UNHCR staff. He was interviewed and fingerprinted, and finally given good news: He would be evacuated to Rwanda.
  • Over the past three years, the EU has allocated nearly 100 million euros, around $100 million, to spend on the Libyan coast guard, with the aim of intercepting and stopping boats of migrants and refugees who are trying to reach Europe. Tens of thousands of people who could have their asylum claims assessed if they managed to reach European soil have instead been returned to Libya to spend months or years in for-profit detention centers where sexual violence, labor exploitation, torture, and trafficking have been repeatedly documented. They wait, in the unlikely hope of being selected for a legal route to safety.
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  • 2,427 people last year got the option to go with UNHCR either directly to European countries or to a transit country where their cases can be considered for resettlement to Europe or North America. In contrast, nearly 1,000 refugees and migrants were returned to Libya in the first two weeks of 2020 alone.
  • Both Niger and Romania have previously been used as transit countries, though the number of people going to Niger have slowed because of problems processing cases. This past September, Rwanda announced it will also begin to take evacuees, following negotiations and a deal signed with the African Union and UNHCR.
  • UNHCR is still appealing for funding, saying it hopes to evacuate 1,500 people to Rwanda by the end of 2020, with the program expected to cost nearly $27 million by then. So far, according to numbers provided by UNHCR, the EU has pledged 10 million euros, Norway just over 5 million euros, and Malta 50,000.
  • Though a relatively secure country with much-lauded economic development, Rwanda is also a dictatorship and police state with a tightly controlled media
  • in a small, bare room in a bar outside the camp that same month, a group of refugees gathered to tell me their stories. For more than a year, they had been sending me evidence of human rights abuses from a network of Libyan detention centers, using a series of phones they kept hidden throughout. Now they say they are grateful to be in Rwanda, but they also resent the time they spent locked up.
  • They witnessed deaths from medical negligence and suffered through deliberate food deprivation, torture, and forced recruitment.
  • “Most of our minds are completely spoilt. We’re afraid of motorbikes, of helicopters,”
  • Sonal Marwah, a humanitarian affairs manager with Doctors Without Borders, said survivors suffer from emotional and psychological problems, such as anxiety and depression.
  • They feel they can’t trust anyone anymore, convinced everyone around them has tried to profit from them: whether Libyan authorities, smugglers, the U.N., or the Rwandan government.
  • Some said that it was only when they signed documents on the night before they left Libya that UNHCR staff informed them they might have to stay in Rwanda for longer. There were consequences for backing out at that stage, too. UNHCR confirmed a “very small number” of refugees in Libya refused to go to Rwanda, meaning the agency will not consider them for resettlement or evacuation again.
  • In November, evacuees got another shock when UNHCR’s special envoy for the Mediterranean, Vincent Cochetel, tweeted that refugees in Rwanda have “wrong” expectations. “We have no obligation to resettle all refugees in/from Libya,” he wrote. “They can locally integrate in Rwanda if they want, [while] learning and mentally accepting that there is not just a ‘Europe option.’”
  • Others accused UNHCR of using their evacuations as a public relations coup to show the agency is doing something, while promoting the Rwandan government’s charity, instead of prioritizing evacuees’ welfare.
  • The evacuation program “risks exacerbating a situation where the vast majority of refugees continue to be hosted in developing countries, while richer ones spend their resources on keeping people out at any cost,”
  • UNHCR said it has received 1,150 resettlement pledges from other countries for refugees in Rwanda, with Norway alone pledging to take in 600 refugees (not all of them from Libya). Some Libya evacuees have already been accepted to go to Sweden. The number of available places is still “far outstripped by the needs,”
  • At what point does the EU become responsible for refugees it has forced from its borders through externalization policies? How much suffering can they go through before European officials recognize some obligation?
  • “Africa is Africa,” he has repeated throughout months of contact from both Libya and Rwanda, saying he’s worried about corruption, repression, exploitation, a lack of freedom, and a lack of opportunity in his birth continent. In Europe, Alex believes, refugees “can start a new life, it’s like we [will be] born again. All the suffering and all the torture, this only makes us stronger.”
Ed Webb

The real Lord of the Flies: what happened when six boys were shipwrecked for 15 months ... - 0 views

  • western culture has been permeated by the idea that humans are selfish creatures. That cynical image of humanity has been proclaimed in films and novels, history books and scientific research. But in the last 20 years, something extraordinary has happened. Scientists from all over the world have switched to a more hopeful view of mankind. This development is still so young that researchers in different fields often don’t even know about each other.
  • An English schoolmaster, William Golding, made up this story in 1951 – his novel Lord of the Flies would sell tens of millions of copies, be translated into more than 30 languages and hailed as one of the classics of the 20th century. In hindsight, the secret to the book’s success is clear. Golding had a masterful ability to portray the darkest depths of mankind. Of course, he had the zeitgeist of the 1960s on his side, when a new generation was questioning its parents about the atrocities of the second world war. Had Auschwitz been an anomaly, they wanted to know, or is there a Nazi hiding in each of us?
  • not for a second did I think to doubt Golding’s view of human nature. That didn’t happen until years later when I began delving into the author’s life. I learned what an unhappy individual he had been: an alcoholic, prone to depression; a man who beat his kids. “I have always understood the Nazis,” Golding confessed, “because I am of that sort by nature.” And it was “partly out of that sad self-knowledge” that he wrote Lord of the Flies.
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  • a minuscule island in the azure sea, ‘Ata. The island had been inhabited once, until one dark day in 1863, when a slave ship appeared on the horizon and sailed off with the natives. Since then, ‘Ata had been deserted – cursed and forgotten.
  • A small island, to be precise. Not a tropical paradise with waving palm trees and sandy beaches, but a hulking mass of rock, jutting up more than a thousand feet out of the ocean. These days, ‘Ata is considered uninhabitable. But “by the time we arrived,” Captain Warner wrote in his memoirs, “the boys had set up a small commune with food garden, hollowed-out tree trunks to store rainwater, a gymnasium with curious weights, a badminton court, chicken pens and a permanent fire, all from handiwork, an old knife blade and much determination.” While the boys in Lord of the Flies come to blows over the fire, those in this real-life version tended their flame so it never went out, for more than a year.
  • The kids agreed to work in teams of two, drawing up a strict roster for garden, kitchen and guard duty. Sometimes they quarrelled, but whenever that happened they solved it by imposing a time-out. Their days began and ended with song and prayer. Kolo fashioned a makeshift guitar from a piece of driftwood, half a coconut shell and six steel wires salvaged from their wrecked boat – an instrument Peter has kept all these years – and played it to help lift their spirits. And their spirits needed lifting. All summer long it hardly rained, driving the boys frantic with thirst. They tried constructing a raft in order to leave the island, but it fell apart in the crashing surf. Worst of all, Stephen slipped one day, fell off a cliff and broke his leg. The other boys picked their way down after him and then helped him back up to the top. They set his leg using sticks and leaves. “Don’t worry,” Sione joked. “We’ll do your work, while you lie there like King Taufa‘ahau Tupou himself!”
  • They were finally rescued on Sunday 11 September 1966. The local physician later expressed astonishment at their muscled physiques and Stephen’s perfectly healed leg
  • While the boys of ‘Ata have been consigned to obscurity, Golding’s book is still widely read. Media historians even credit him as being the unwitting originator of one of the most popular entertainment genres on television today: reality TV. “I read and reread Lord of the Flies ,” divulged the creator of hit series Survivor in an interview.
  • It’s time we told a different kind of story. The real Lord of the Flies is a tale of friendship and loyalty; one that illustrates how much stronger we are if we can lean on each other. After my wife took Peter’s picture, he turned to a cabinet and rummaged around for a bit, then drew out a heavy stack of papers that he laid in my hands. His memoirs, he explained, written for his children and grandchildren. I looked down at the first page. “Life has taught me a great deal,” it began, “including the lesson that you should always look for what is good and positive in people.”
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