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Ed Webb

The Military-Industrial Jobs Scam | naked capitalism - 0 views

  • despite defense contractor claims to the contrary, increased military spending has been accompanied by job losses in the US
  • the contracting fraud results in US taxpayers paying way more than it would have cost for US personnel to do the work…with the added insult that the tasks were performed by locals for a pittance
  • When contractors receive more taxpayer money, do they generally create more jobs? To answer it, we analyzed the reports of major defense contractors filed annually with the U.S. Securities and Exchange Commission (SEC). Among other things, these reveal the total number of people employed by a firm and the salary of its chief executive officer. We then compared those figures to the federal tax dollars each company received, according to the Federal Procurement Data System, which measures the “dollars obligated,” or funds, the government awards company by company
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  • the Trump administration has stopped at nothing to push the argument that job creation is justification enough for supporting weapons manufacturers to the hilt. Even before Donald Trump was sworn in as president, he was already insisting that military spending was a great jobs creator. He’s only doubled down on this assertion during his presidency. Recently, overriding congressional objections, he even declared a national “emergency” to force through part of an arms sale to Saudi Arabia that he had once claimed would create more than a million jobs. While this claim has been thoroughly debunked, the most essential part of his argument — that more money flowing to defense contractors will create significant numbers of new jobs — is considered truth personified by many in the defense industry
  • In 2012, concerned that those caps on defense spending would cut into their bottom lines, the five top contractors went on the political offensive, making future jobs their weapon of choice. After the Budget Control Act passed, the Aerospace Industries Association — the leading trade group of the weapons-makers — warned that more than one million jobs would be at risk if Pentagon spending were cut significantly. To emphasize the point, Lockheed sent layoff notices to 123,000 employees just before the BCA was implemented and only days before the 2012 election. Those layoffs never actually happened, but the fear of lost jobs would prove real indeed and would last.
  • Pentagon spending was actually higher in 2018 than in 2012
  • From 2012 to 2018, overall employment at Lockheed actually fell from 120,000 to 105,000, according to the firm’s filings with the SEC and the company itself reported a slightly larger reduction of 16,350 jobs in the U.S. In other words, in the last six years Lockheed dramatically reduced its U.S. workforce, even as it hired more employees abroad and received more taxpayer dollars
  • where is all that additional taxpayer money actually going, if not job creation? At least part of the answer is contractor profits and soaring CEO salaries. In those six years, Lockheed’s stock price rose from $82 at the beginning of 2012 to $305 at the end of 2018, a nearly four-fold increase. In 2018, the company also reported a 9% ($590 million) rise in its profits, the best in the industry. And in those same years, the salary of its CEO increased by $1.4 million
  • From 2012 to 2018, the unemployment rate in the U.S. plummeted from roughly 8% to 4%, with more than 13 million new jobs added to the economy. Yet, in those same years, three of the five top defense contractors slashed jobs. In 2018, the Pentagon committed approximately $118 billion in federal money to those firms, including Lockheed — nearly half of all the money it spent on contractors. This was almost $12 billion more than they had received in 2012. Yet, cumulatively, those companies lost jobs and now employ a total of 6,900 fewer employees than they did in 2012, according to their SEC filings.
  • In addition to the reductions at Lockheed, Boeing slashed 21,400 jobs and Raytheon cut 800 employees from its payroll. Only General Dynamics and Northrop Grumman added jobs — 13,400 and 16,900 employees, respectively — making that total figure look modestly better. However, even those “gains” can’t qualify as job creation in the normal sense, since they resulted almost entirely from the fact that each of those companies bought another Pentagon contractor and added its employees to its own payroll
  • “the aerospace and defense (A&D) sector scored record revenues and profits in 2018” with an “operating profit of $81 billion, surpassing the previous record set in 2017.” According to the report, Pentagon contractors were at the forefront of these profit gains. For example, Lockheed’s profit improvement was $590 million, followed closely by General Dynamics at $562 million. As employment shrank, CEO salaries at some of these firms only grew. In addition to compensation for Lockheed’s CEO jumping from $4.2 million in 2012 to $5.6 million in 2018, compensation for the CEO of General Dynamics increased from $6.9 million in 2012 to a whopping $20.7 million in 2018.
  • weapons-making outfits spend more than $100 million on lobbying yearly, donate tens of millions of dollars to the campaigns of members of Congress every election season, and give millions to think tanks annually
  • research has repeatedly shown that, even with this supposed “multiplier effect,” defense spending produces fewer jobs than just about anything else the government puts our money into. In fact, it’s about 50% less effective at creating jobs than if taxpayers were simply allowed to keep their money and use it as they wished
  • As Brown University’s Costs of War project has reported, “$1 billion in military spending creates approximately 11,200 jobs, compared with 26,700 in education, 16,800 in clean energy, and 17,200 in health care.”
  • not only are the green energy and education areas vital to the future of the country, they are also genuine job-creating machines. Yet, the government gives more taxpayer dollars to the defense industry than all these other government functions combined.
  • Reports from the industry’s own trade association show that it has been shedding jobs. According to an Aerospace Industries Association analysis, it supported approximately 300,000 fewer jobs in 2018 than it had reported supporting just three years earlier
  • add to their army of lobbyists, their treasure trove of campaign contributions, and those think tanks on the take, the famed revolving door that sends retired government officials into the world of the weapons makers and those working for them to Washington
  • since 2008, as the Project On Government Oversight’s Mandy Smithberger found, “at least 380 high-ranking Department of Defense officials and military officers shifted into the private sector to become lobbyists, board members, executives, or consultants for defense contractors.” 
Ed Webb

Qatar Migrant Workers Battle Coronavirus Outbreak During World Cup Construction - 0 views

  • There are more than 2 million migrant workers in Qatar—a significant number given that the country’s overall population is just 2.6 million. In recent years the foreign laborer population in Qatar has swelled as the country has undergone a construction boom ahead of the 2022 FIFA World Cup, which is set to be held there.
  • Research published last year in the journal Cardiology explored the relationship between heat exposure and the deaths of more than 1,300 Nepali workers over a nine-year period until 2017. The climatologists and cardiologists found a strong correlation between heat stress and young workers dying of cardiovascular problems in the summer months
  • abuse—which at times has amounted to forced labor and human trafficking—has been exacerbated by South Asian governments’ inability to successfully lobby for strong protections. (Critics contend there has been scant political will given the huge portion of GDP now made up by remittances from overseas workers.
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  • Some 35 million migrants are employed in the six Gulf Cooperation Council countries, in Jordan, and in Lebanon, and incidences of exploitation are well documented
  • While Qatar has now shut down all public spaces, construction workers are still working on a variety of projects despite the fact that hundreds of cases of the coronavirus have spread among their communities
  • as the coronavirus pandemic edges its way across Qatar, which now has more than 2,000 confirmed cases, the migrant workers’ cramped living quarters and lack of access to health care, proper sanitation, and nutritious food imperils an already highly vulnerable group of people.
  • the true burden of disease among migrant workers is unknown. The government doesn’t give figures on what portion of the infected are migrant workers. And some migrants fear coming forward to report their symptoms.
  • “The situation here is serious,” Narendra said, describing the lockdown in part of the Industrial Area. “I have been frequently speaking with workers who are in lockdown areas. Employers aren’t allowing people out to buy food, and companies are not providing food. We don’t have any rights to ask for support.”
  • At the heart of the abuse faced by migrant workers has been Qatar’s kafala system, which legally binds foreign workers to their employers, restricting workers’ ability to change jobs and preventing them from leaving the country without their employers’ permission—a practice that has been described as modern slavery. In October 2019, the government announced reforms that would allow migrant workers to change jobs and leave Qatar without employer consent. Thus far, only the second reform has been implemented. And while campaigners laud the progress, enforcement of laws remains spotty, and there’s little clarity on when further reforms will be rolled out.
  • Most workers sleep in dormitories, sharing rooms with up to 10 people and sharing kitchens and bathrooms with dozens more. When they head to work on the construction sites, it is on overcrowded buses. In response, the government recently announced it would reduce bus capacity by half, that construction workers would work a maximum six hours a day, that workers’ accommodation would be limited to four people, and that all accommodation sites would be sanitized and information on hand-washing and hygiene would be provided. Whether this is just rhetoric remains to be seen.
Ed Webb

Manufacturing: Up? Down? | FRED Blog - 0 views

  • Manufacturing output is definitively trending up; that is, the number of things produced in this country has increased over time and is currently increasing. This production is accomplished, however, with fewer and fewer employees. It should be no surprise that an economy becomes increasingly better (quicker, more efficient, etc.) at producing things, thanks to increasing productivity per employee through innovations, for example. Recently, though, manufacturing employment is trending up slightly, while productivity has slowed down (as it has in other sectors).
  • when an industry needs fewer people because it is better at doing something, this is viewed as a gain by economists: Workers who aren’t needed any more can move on to produce something else. Of course, there are costs in the process if displaced workers cannot find new employment right away. The U.S. has a relatively flexible labor market that has generally managed to respond well to such challenges. In the short-term, though, the gains are not shared by everyone. Manufacturing unemployment is particularly high in recessions, as is seen in the graph below. But consider yet another twist: The current unemployment rate for manufacturing is lower than the rate for the general population.
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    Like the UN and international financial institutions, the Federal Reserve and its counterparts in many other countries make data available online and relatively accessible for analysis.
Ed Webb

How Japan Increased Immigration Without Stoking Xenophobia - 0 views

  • even as immigration grows in this traditionally homogenous country, Japan appears to be avoiding the organized far-right backlash that has coursed through the West in recent years
  • In Europe and the United States, immigration and national identity seemingly consume all politics; in Japan, despite its reputation as closed-off, homogenous, and xenophobic, a large increase in immigration has mostly been met with a shrug. While anti-immigrant sentiments are widespread, they do not run very deep, or so suggests the lack of substantial opposition
  • In April 2019, Tokyo implemented historic immigration reform, expanding visa programs to allow more than 345,000 new workers to immigrate to Japan over the subsequent five years. Low-skilled workers will be able to reside in Japan for five years, while foreign workers with specialized skills will be allowed to stay indefinitely, along with their family members—suggesting that many of these workers might stay for good
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  • This growth in immigration, in turn, is changing the image of Japan from ethnically homogenous to moderately diverse. Among Tokyo residents in their 20s, 1 in 10 is now foreign-born. And Tokyo is no longer an outlier. Much of the migration is happening in small industrial towns around the country, such as Shimukappu in central Hokkaido and Oizumi in Gunma prefecture, where migrant populations make up more than 15 percent of the local population. In the mostly rural Mie prefecture, east of Osaka and Kyoto, foreign migration has reversed years of population loss.
  • Conservative Prime Minister Shinzo Abe has based his support for the changing immigration policy not on any humanitarian concerns but rather on pragmatic, demographic arguments. By 2050, the world population is expected to increase by 2 billion people, according to the United Nations, but Japan’s population is expected to shrink by at least 20 million. Meanwhile, the fertility rate in Japan has fallen to 1.4 children per woman, while 28 percent of the country is over 65 years old. This means that the country’s population has been dropping by around 400,000 people a year
  • With unemployment consistently below 3 percent in recent years, even after the pandemic, employers are increasingly raising alarms about labor shortages. Last year, for the first time in Japan’s history, there were more jobs available than the number of job seekers in all of Japan’s 47 prefectures. In a country long known for its restrictive borders, immigration is now seen as the most obvious solution to that demographic challenge.
  • Japan has developed a unique program of customized immigration, based on specific requests for workers from various countries
  • Japan custom-orders a labor force in the 14 sectors where they are most urgently needed, including nurses and care workers, shipbuilders, farm workers, car mechanics, and workers in the fishing and construction industries
  • given that latest bill allows an easier pathway for skilled foreign workers to apply for permanent residency and, eventually, Japanese citizenship—it may do more than simply sustain society. “More workers will try to stay here permanently,” Oguma said. “So even if the bill is not meant to change Japan, it certainly has the potential to change Japanese society in the long term.”
  • most of Japanese society supports the changing immigration policy. In a recent survey by Nikkei, almost 70 percent of Japanese said it is “good” to see more foreigners in the country. “The nationalist, anti-immigrant groups here only make up perhaps 1-2 percent of voters. It’s not like Europe. And they have not raised their voices about this so far,”
  • bilateral agreements Japan has drafted with countries such as Indonesia and the Philippines, which will allow them to send tens of thousands of care workers to Japan annually. Both countries see this as a win-win proposition. Japan gets much-needed labor, the Philippines gets an increase in foreign remittances, and many workers will eventually return, having learned new valuable skills
  • opposition has largely come from Abe’s left, over concerns about a lack of regulation on employers, which they fear could lead to exploitation. Many foreign workers are already forced to work overtime, receive less pay, and risk having their passports and travel documents confiscated by employers
  • some factories in the mostly rural Gifu prefecture have implemented segregated bathrooms and locker rooms for domestic and foreign workers
  • This dynamic was common in the immigration debate in Europe and the United States in the 1980s and ’90s, when pro-business conservatives often pushed for more immigrants and guest workers, while labor unions raised concerns for workers’ rights and downward pressure on wages.
  • The widespread xenophobia in Japan is hardly a myth. In 2010, the U.N.’s human rights experts called out Japan for racism, discrimination, and exploitation of migrant workers. Increased immigration has not changed the country’s notoriously strict asylum policies. In 2018, only 42 asylum-seekers were approved, out of around 10,000 applicants.
  • he said he prefers the casual xenophobia of Japan to the structural racism of America
  • Sooner or later, Japan may face nationwide debate on what it means to be Japanese in the 21st century. Few countries undergoing demographic shifts are able to avoid these challenges.
  • When South Korea accepted 500 Yemeni refugees in 2018, it created storms of protests, with street rallies demanding that the Yemenis be sent back, calling them “fake refugees.”
  • In early June, thousands of people participated in Black Lives Matter protests in Tokyo, which has contributed to a nationwide debate on harassment of migrants and foreigners—as well as race.
  • “Xenophobic nationalists are generally irrelevant in politics. If there is a backlash, it will most likely begin as a local uprising against Tokyo, a populist revolt against the central government, just as in the EU,” Oguma said. “But I don’t see it happening right now. The far-right here is too atomized, each faction want different things. So I don’t really worry about an organized uprising.”
  • With massive stimulus spending and a robust, universal health care system, Japan has weathered the pandemic fairly well. Unemployment in April was 2.5 percent. While there has been some anecdotal evidence of increased racist harassment of foreign workers, coupled with an emerging skepticism toward globalization and migration, Japan at the moment is one of the few countries where resentment against immigrants is not the defining feature of politics.
Ed Webb

Blog post #3, Magistro and Wittstock - Political Economy Forum at the University of Was... - 0 views

  • The idea that immigrants will steal jobs from American workers assumes they compete for the same scarce pool of jobs. Studies show this is often not the case. In many instances, positions that native born workers are not willing to fill create opportunities for migrants. Furthermore, immigrants are not only workers, but they are also consumers. Ultimately, the amount of jobs available depends in large part on the level of demand for goods and services, which is in turn affected by the total number of people contributing to the economy. Immigrants also become employers themselves, at rates higher than the native-born population. As such, they help put upward pressure on American wages and overall employment. Immigrants also tend to fill jobs that are complements to those held by native-born workers, making the latter more productive. And despite immigrants only making up 16% of inventors, they are responsible for 30% of aggregate US innovation since 1976, with their indirect spillover effects accounting for more than twice their direct productivity contribution. In short, immigration creates more economic opportunities for everyone: a win-win scenario.
  • A similar argument was also put forth by those voices who sought to discourage women from joining the labor market in larger numbers during the 1960s and 70s. Yet the huge bulge in female employment during this time and after is strongly associated with the creation of millions upon millions of new jobs due to much of the same logic we outlined above in the case of immigrants.
  • perhaps Americans underestimate the positive economic impacts made by immigrants, making it easier for any administration to fumble the ball on this issue. Alternatively, some folks may simply not care, the economy be damned
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  • if one shared the Trump administration’s concerns over growing Chinese capabilities in the technology sector –- embodied by companies such as Huawei –- then ensuring all competitive advantages to American companies should be a priority. Yet, restrictions like the ones just passed will turn many skilled workers away or make it virtually impossible for companies to hire foreign workers on short or long-term bases. This will make these companies less innovative, less flexible, and ultimately less competitive.
  • this directive makes a lot of us immigrants wonder if we are still welcome here. It makes us question whether the U.S. is still a “land of opportunity” and whether we should perhaps take our work, ideas, and the taxes we pay elsewhere
Ed Webb

Inside a Massive Anti-Trafficking Charity's Blundering Overseas Missions - 0 views

  • People who participated in and witnessed OUR operations overseas recounted blundering missions—carried out in part by real estate agents and high-level donors—that seemed aimed mainly at generating exciting video footage and that, in their view, potentially created demand for trafficking victims
  • Experts and advocates for sex workers and trafficking survivors also questioned whether OUR's ties to a corrupt Thai police agency could lead to repression of pro-democracy activists, and whether it and similar NGOs truly help survivors or have been successful in identifying or dismantling trafficking networks. In all, these people told a story involving alarming amateurism that potentially endangers both those carrying out missions and the people they're meant to help.
  • The image of armed men racing into dangerous situations to rescue sexually abused children has been a hit with OUR’s donors and with media outlets, which have run hundreds of flattering stories about its work.
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  • OUR is now a celebrated anti-trafficking charity, claiming to have worked in 26 countries, with the stated aim of bringing together "the world's experts in extraction operations and in anti-child trafficking efforts to bring an end to child slavery." It brought in more than $21 million in donations in 2019, the most recent year for which tax filings are available, and has enjoyed the support of high-powered backers
  • a common pattern for anti-trafficking NGOs working abroad, according to sex worker activists with Thailand’s Empower Foundation.
  • while OUR often claims to partner with local law enforcement on trafficking investigations and rescues, the extent of that “partnership” is often a modest donation OUR gives the agency, which in return credits it in press releases about any investigation, rescue, bust, or arrest that used the money.
  • OUR’s overseas operations, and the “jump team” it says conducts them, are the jewel in its crown: the subject of innumerable fundraising emails, interviews with Ballard, two documentaries, and Sound of Freedom, an upcoming feature film starring Jim Caviezel as Tim Ballard. (The casting of an actor most famous for playing Jesus Christ is perhaps not coincidental; while OUR is not an expressly religious organization, it heavily employs the language and imagery of faith, and Ballard, a devout Mormon, has said he was directly called by God to "Find the lost children.") OUR routinely claims that its overseas jump teams are made up of former members of the military, CIA, and law enforcement who undergo rigorous training.
  • nothing OUR did seemed recognizably informed by professional military or intelligence practice. There was, they said—contrary to the process for operations laid out on OUR's website—no meaningful surveillance or identification of targets; no development of assets; no validating that people they sought to rescue had in fact been trafficked, or that people they were targeting were indeed traffickers; and no meaningful follow-up with people who had been rescued on the missions in which they took part.  
  • “They’d go and just push for pimps to show up with girls.” If presented with sex workers of legal age, OUR would insist on younger girls—a method that several experts said could, when combined with a lack of intelligence-gathering and vetting, potentially lead to girls being trafficked who otherwise wouldn't have been.
  • Typically, after arranging for the women and girls to be brought to them, OUR's operators would call local police, who would make arrests. The operators would then leave the country.“They conflate sex work and trafficking,” said a former military member who has worked with OUR. “They’re making it worse.” 
  • Much research has been published demonstrating how these types of rescues are severely undermining the agency of trafficked persons and disempowering the individuals the involved organizations are claiming to help.
  • “There’s so many of these organizations here I don’t know one from the other,” Mai Janta, a sex worker leader of the organization, told VICE World News, laughing. 
  • it faces an ongoing investigation by Davis County, Utah attorney general Troy Rawlings, as Utah’s Fox 13 reported last October. While Rawlings hasn’t publicly described the contours of the investigation, people familiar with it have told both Fox 13 and VICE World News that his office is looking into whether OUR has made misleading statements in its fundraising appeals
  • Before the training began, candidates were given a psychological examination. On his way to his, William passed a candidate exiting an exam, who said, “If you mention God, you're a shoo-in.” 
  • “Before I went to this training,” he said, “I was counting down the days. I was expecting a world-class training, because these are supposed to be the best operatives.” Instead, he didn't feel like he was learning anything, and certainly not like he was being prepared to rescue children from dangerous traffickers. William wasn't taught, among other things, basic self-defense, signs to look for in a trafficker or trafficking survivor, surveillance technique, or secure communication. Topics that were covered included how to compartmentalize your discomfort if you find yourself in a gay bar, and the instructors' many war stories, including one that involved someone being stabbed dozens of times.
  • real estate brokers seem to have figured heavily in the world of OUR’s operators
  • Empower says that more than 50,000 sex workers have been a formal part of its operations over the years, and that members include sex workers from Thailand and migrant sex workers from Laos, Myanmar, China, and Cambodia. Its members are often extremely familiar with the various rescue operations that come to the country intent on “saving” trafficked women and girls; many organizations, working with local police, have conducted raids on massage parlors, legal brothels, and other places where they work. Most of these groups hail from the U.S., United Kingdom, New Zealand, and Australia, said Janta, and often have a clear religious focus. 
  • “They say they’re helping but really want to change your religion and your job,”
  • Beyond individual organizations, the entire raid-and-rescue model has fallen out of favor with responsible anti-trafficking organizations
  • “From our point of view, they come into our workplaces and make a relationship with the employer as well as the police. If there are no underage workers they continually ask and ask for the employer to find them some underage workers,” Janta added. “So they create a situation where there are underage workers, where there weren’t before.” 
  • “Just because they’re Americans or American missionaries, does not mean they’re actually representing the U.S. and U.S. interests,”
  • OUR's future seems, by all appearances, to be bright. Sound of Freedom, the film about the founding of OUR starring Jim Cavizel and Mira Sorvino as Tim Ballard and his wife Katherine, has been screened in theaters and awaits broad release. Celebrity backers like NFL players Corbin Kaufusi and Josh Allen enthusiastically promote OUR's work. And the public's continued fascination with QAnon and related conspiracy theories about pedophilia and child sex trafficking—from which OUR has publicly distanced itself—has led to huge interest in, and funding for, groups vowing to combat them. 
  • “We didn’t see them,” said Laovilawanyakul. “But we could’ve used their money for this time. They could have spent some of their money helping people get through COVID.”
  • “Instead of donating money to anti-trafficking orgs in the hope that it will help after something bad has happened, think about support for us all to be more secure and able to defend ourselves,” she said. “Scholarships, apprenticeships, family payments for mothers, support for teenagers who have left home.” Losing the ability to make a living has dislodged many women and girls from their villages and forced them into journeys as migrant sex workers.“If us and our families are secure,” Janta added, “we can defend ourselves and build our own lives without the need for rescue.”
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

Russian Mercenaries in Great-Power Competition: Strategic Supermen or Weak Link? | RAND - 0 views

  • Russia's worst-kept secret is its increasingly heavy reliance on private security contractors—really, mercenaries—to maintain a Russia-favorable global status quo and to undermine its competitors' interests. This reliance on mercenaries stems from a known capability gap
  • Russia's military has strictly limited ability to project ground power worldwide. It has almost no organic ability to project and sustain ground power more than a few hundred kilometers beyond its own borders. Russian strategic lift is anemic compared to Soviet-era lift. Available forces are often tied down in one of the many frozen conflicts that ring Russia's western and southern borders.
  • Even a strong de facto dictator like Vladimir Putin cannot deploy one-year conscripts beyond Russia's borders without incurring significant political risk
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  • Unlike the Soviet Union, Russia is not a global ground combat power.
  • Russia has employed heavily armed mercenaries from the notorious Wagner Group and a range of other (PDF) government-cozy (and perhaps government-run) companies as the tip of the Russian foreign policy spear. In effect, Russia has outsourced its foreign policy in Libya, Syria, the Central African Republic, Madagascar, Mozambique, Sudan, Ukraine, Yemen, Burundi, and other global hot spots.
  • Dmitry Utkin, former commander of the Russian military intelligence directorate's (GRU's) Spetsnaz special forces units, allegedly founded the Wagner Group in 2014. Wagner and an elite GRU Spetsnaz unit reportedly share a military base in the Russian town of Molkino.
  • RAND's work on will to fight—the disposition and decision to fight, act, or persevere in conflict and war—and on Russian state power suggests that Russia is using mercenaries due in great part to its inherent military and civil weaknesses. Russian mercenaries (in fact, all mercenaries) also have behavioral limitations and vulnerabilities to influence. Dependence on mercenaries also reflects a vulnerability in Russian national will to fight. Both of these weaknesses can be exploited.
  • Mercenary soldiers with the Wagner Group (formerly Moran Security Group, and then Slavonic Corps Limited) and other Russian mercenary groups like Patriot, took the lead in some of the more dangerous frontline operations in Syria while uniformed Russian soldiers guarded air and naval bases along Syria's coastline
  • The employment of private forces within the spectrum of both domestic and interstate rivalry has been more norm than anomaly throughout most of recorded history.
  • In February 2018, Russian-hired mercenaries led (or at least closely accompanied) a Syrian militia force armed with artillery and heavy tanks to seize an oilfield near the city of Deir az-Zour in northeastern Syria. American Special Operations Forces and Marines decimated them with hours of precision air attacks, killing perhaps (PDF) hundreds and causing the rest of the force—including the mercenaries—to flee. As Russian-hired mercenary personnel retreated from the battlefield at Deir az-Zour, other teams of Russian private military actors had to call in helicopter teams to evacuate the wounded from the battlefield in the absence of state support.
  • Russian mercenaries have also performed poorly in Africa. In Mozambique, Wagner mercenaries stumbled through the kinds of partner-building efforts at which U.S. special operations forces tend to excel. They offended the locals and reportedly double-crossed allies to make money. Islamic State insurgents have successfully attacked and killed them on poorly secured roads. Mercenary disinformation tactics in Mozambique backfired. What was billed as a Russian power play in a former Soviet client state looks like a disaster in the making.
  • Wagner sent hundreds of trainers and security personnel to the Central African Republic to help Russian commercial interests secure mining rights and to support a complex regional diplomatic push to increase Russian influence. There has been little pretense in this operation: It is primarily a money-making venture. In one case, Wagner mercenaries reportedly helped the rebels they were hired to fight in order to help a Russian mining company gain access to diamond mines. Wagner has been linked to the suspicious deaths of three journalists who were nosing around its CAR operations. This Russian mercenary-led deployment has been partially successful in countering French influence, but it is not clear that reported successes on the ground outweigh the lasting, negative consequences of Wagner's cutthroat behavior.
  • Russia sent mercenaries and probably some active military forces to support Khalifa Haftar's anti-government forces in Libya. In early 2020, 1,000 Wagner mercenaries reportedly fled the front lines between pro- and anti-government forces after suffering a resounding defeat. Combat losses for Wagner in Libya are unknown but possibly significant.
  • as individuals and as a group, Russian mercenaries have repeatedly shown that they will pursue self-interest and commercial interests over state interests, and that they will quickly abandon partner forces—and perhaps each other—when the tactical risks fail to outweigh the financial rewards.
  • There is no shortage of genuine tough guys in groups like Wagner and Patriot. Under the will to fight factor of quality, many Russian mercenaries would earn high marks for fitness and resilience. But outright toughness and even elite military training alone cannot sustain the will to fight of an individual primarily motivated by money.
  • Together, the weaknesses within Russian mercenary forces and within the Russian state in relation to press-ganged youths, conscripts, and casualties may offer ready opportunities for exploitation in great-power competition. These broader weaknesses in Russian national will to fight could be examined to identify more ways to prevent Russia from aggressively undermining Western democracy.
Ed Webb

Adam Tooze on World Order, Then and Now - ChinaTalk - 0 views

  • if you're dealing with a bunch of herbivorous Social Democrats, they'll take you in one direction and you'll end up with a welfare state and full employment, but if their same knowledge is in the hands of a group of nationalist militarists, what you've really provided them with is the blueprint for highly efficient mobilization of a military economy in times of peace. So deep in the heart of neoliberal thought and conservative thinking about the modern state and its potential lies a fear of that possibility.
  • China’s not the Soviet Union, China's not fascist Italy, China's not Nazi Germany. The growth of China is a phenomenon that dwarfs all of those previous developments and has to be understood on the timeframe that was laid out for us by the economic data of somebody like Angus Maddison, who shows us global GDP all the way back to the birth of Christ. All the way through the beginning of the 19th century, the Asian economies actually dominate once you've adjusted GDP by purchasing power parity and so on.
  • It's tempting to say, is there anyone in the United States that could play the role of the British elite after World War One? But America's position of dominance was vastly greater than that ever by enjoyed the British so the psychological challenge of accepting this transition is far greater. And, of course, in key respects America remains an absolutely dominant player, most notably with regard its hard power, its weapons, but also in certain respects with regard to its financial centrality.
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  • what does monopoly do and what do oligopolistic structures do to the domestic political structure?
  • properly understood liberalism clearly isn't premised on the absence of the state, its premised on a well-ordered set of relationships between individuals, the law and various types of representation. That structure is not necessarily robust if economic power becomes monolithic. There are ways of taming that by way of corporatism, in which you have an organized representation of economic interests. But you can also imagine systems in which it can become a sort of destructive set of flywheels of extremely explosive dynamics of gigantic interest groups contending with each other more or less in an unmediated direct form interest on interest.
  • a clash within the one-party state of different interests, of agglomerations of technology and capital, of different party factions
  • It's quite difficult to describe the Chinese regime in categories that are at all familiar without reducing it hopelessly and just failing to recognize its complexity
  • This sort of apocalyptic thinking of a history that's going to end with some sort of big bang, or some terrible ghastly discreditable whimper, rather than just facing up to reality in which the world is different and America's position is not what it was in 1945. Which is not after all the end of the world.
  • there are deeply intelligent, obviously brilliant political and legal theorists working in China, trying to articulate and make sense of the logic of this emerging power. One of the sources that they go to – and this has emerged from the tireless work of many translators of recent Chinese political writing and international relations thought is -- is a German political and legal theorist called Carl Schmitt.
  • We were fought to a stalemate in Korea. Vietnam was a debacle. And one of the key anchors of the ultimate demise of Soviet Union is, after all, an alliance with China. And in 1989 at the moment, as it were, where the chips are falling and the Warsaw pact is disintegrating in Eastern Europe, we have Tiananmen Square, the Communist Party basically giving notice that this regime change will not extend to them.
  • you can immediately see why Chinese scholars seized on precisely this logic for thinking through the emergence of Chinese power in the context of what they would diagnose as American empire
  • they also see in Schmitt a theorist of China's own potential empire, a zone of influence and power that would create its own structures of incorporation, its own norms. Given from China, defined by China, set and ultimately rooted in Chinese power, radiating out from East Asia, encompassing other states.
  • “One Nation, Two Systems” was precisely a kind of Schmittian vision of an overarching Chinese empire, with the pluralism that's contained within that. Safely contained with the acknowledgement that this is about China, under the leadership and the hegemony of the CCP, tolerating two systems. Of course, that isn't what we're seeing
  • It seems to me that there could be a horrifying originality to what they're doing. After all the tech dimension of what China's able to do now in terms of surveillance is beyond the wildest dreams of any previous authoritarian regime.
  • It too easily slides out of consciousness that the Chinese regime undertook what Foucauldians would call one of the most grotesque, grandiose, and very violent political experiments in history, the one-child policy. It pursued that towards the Han population. That it’s then also capable of taking those kinds of techniques and applying them to resistant population like the Uighurs or Tibetans or the Mongolians, I don't think it’s surprising. It's the same toolkit. In the eighties, it was ferocious in its intrusiveness, monitoring women's menstrual cycles, forced abortions. This stands alone. No one's ever done that before on that scale. It’s quite mind-blowing and too easily consigned to the history books.
  • Perhaps the common denominator is simply control and this being a matter of the highest possible political stakes. Not to be able to control this virus would be a far more serious blow to the prestige and legitimacy of a regime which has those kinds of pretensions than it is to the Trump administration in the U.S., which in the end just shrugs
  • he has one of the most hard-nosed answers to liberalism. He insists upon understanding politics as a distinction between friend and foe, friend and enemy. He insists that legal orders have real foundations in space and in power, in the taking of a territory, fundamentally. That they therefore have limits and necessarily have limits, that they define insiders and outsiders. That structures which are truly comprehensive threatened to emerge in the course of the 20th century
  • I think that ought to force us to reconsider this notion that the Cold War ended with us winning as it did in Europe. It didn't in Asia, and Korea feels the force of that, Japan feels the force of that, and the United States is now coming to terms with it too.
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

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

Indonesia mass strikes loom over cuts to environmental safeguards and workers' rights |... - 0 views

  • Indonesia has passed a wide-ranging bill that will weaken environmental protections and workers’ rights in an attempt to boost investment, a move condemned as a “tragic miscalculation” that could lead to “uncontrolled deforestation”.Groups representing millions of workers said they would strike on Tuesday in response to protest against the bill, which will amend about 1,200 provisions in 79 existing laws after it was pushed through parliament with unprecedented speed
  • The bill has also been criticised by both environmental experts and some of the world’s biggest investors, who expressed concern over its impact on the country’s tropical forests.
  • The government argues that the bill will make the country more attractive to investors at a time when the economy is reeling from the impact of Covid-19. Millions of people have lost their jobs as a result of the virus, which has infected more than 300,000 people and claimed 11,253 lives.
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  • According to a draft version of the bill, mandatory paid leave for childbirth, weddings, baptism and bereavement will be scrapped, as will menstrual leave for women. Work overtime will be increased to four hours a day, and mandatory severance benefits paid by employers will be reduced, from 32 times monthly wages, to 19 times monthly wages.
  • only high-risk investments required to obtain a permit or carry out an environmental impact assessment
  • Restrictions placed on foreign participation in some sectors will be eased, and the government will set up a land bank and manage this to acquire land for public interest and redistribute the land
  • Phelim Kine, senior campaigns director with the environmental group Mighty Earth, said the Indonesian parliament had made “a ruinous false choice between environmental sustainability and economic growth”
  • would legitimise “uncontrolled deforestation as an engine for a so-called pro-investment job creation policy.”
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
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