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Ed Webb

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

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

America Isn't as Powerful as It Thinks It Is - Foreign Policy - 0 views

  • The Bush-Cheney approach produced a string of failures, but the same unilateral arrogance lives on in the Trump administration
  • It is the basis of the administration’s “take it or leave it” approach to diplomacy with North Korea and Iran, wherein Washington announces unrealistic demands and then ratchets up sanctions in the hope that the targets will capitulate and give the United States everything it wants, even though this approach to both countries has repeatedly failed in the past
  • A similar faith in America’s vast ability to control outcomes can also be seen in the premature recognition of Juan Guaidó as interim president of Venezuela and the strident U.S. demands that “Maduro must go.” However desirable that outcome would be, it would be nice if we had some idea how to bring it about
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  • The underlying assumption behind all of these policies is that U.S. pressure—you know, what Pompeo likes to call “swagger”—will eventually force acknowledged adversaries to do whatever it is the United States demands of them, and that other states won’t find ways to evade, obstruct, divert, dilute, hedge, hinder, or otherwise negate what Washington is trying to do. It assumes we are still dwelling in the unipolar moment and that all that matters is the will to use the power at America’s disposal.
  • this approach denies that there are any real trade-offs between any of these objectives
  • it is not hard to understand why hawks think they can get away with this approach to foreign policy, at least in the short term. Despite many recent missteps, the United States is still very powerful. Its active assistance is still something that some other states want, and its “focused enmity” is something no state can completely ignore. The United States is still a vast and valuable market, the dollar remains the world’s main reserve currency, and the ability to cut other states or financial institutions off from the infrastructure of global finance gives Washington unusual leverage. Many U.S. allies are accustomed to deferring to Washington and are understandably reluctant to do anything that might encourage the United States to withdraw support. Trump and company can also count on the support of authoritarian soul mates in the European right (including the present rulers in Poland and Hungary), as well as America’s morally compromised allies in the Middle East
  • there are even more potent reasons why this bullying approach has produced no major foreign-policy successes so far and is unlikely to yield significant success in the future. First of all, even much weaker states are loath to succumb to blackmail, for one very good reason: Once you’ve shown you can be coerced, there may be no end to subsequent demands. Moreover, when the United States insists on complete capitulation (i.e., by calling for total North Korean disarmament or regime change in Iran), it gives the target state zero incentive to comply. And given Trump’s amply demonstrated dishonesty and fickle approach to diplomacy, why would any foreign leader believe any assurances he (or Pompeo) might give? Put all this together, and you have a perfect recipe for “no deal.”
  • Should Iran eventually restart its nuclear weapons program—which has been in abeyance for more than a decade—the rest of the world is not going to suddenly line up behind the United States and support more forceful action. Why? Because everyone knows that it was the United States—not Iran—that killed the deal, and there won’t be a ton of sympathy for America when it starts bleating about Iran’s response. America’s Middle East clients will no doubt be happy if Washington decides to fight another war on their behalf, but don’t count on a lot of help from them or from anyone else
  • other states are starting to develop workarounds designed to limit U.S. leverage, most notably by designing financial arrangements outside the network of institutions that Washington has been using to coerce allies and adversaries into compliance. As Henry Farrell and Abraham Newman recently wrote in FP, “instead of leading states and businesses to minimize contact with the targets of U.S. sanctions,”  the Trump administration’s strong-arm tactics “may lead states and businesses to minimize their contact with the U.S.-led global financial system and to start to construct their own workarounds. Over time, those workarounds might even begin to accumulate into an effective alternative system.”
  • being a bully encourages adversaries to join forces out of their own self-interest, while giving potential allies more reason to keep their distance. It is no accident that Russia and China continue to move closer together—even though they are not natural allies, and a smarter U.S. approach could give Moscow reasons to distance itself from Beijing—and America’s same bullying impulses are going to push states like Iran even closer to them. Bolton and those of his ilk will probably come up with some trite new moniker for this group—“Axis of Evil” and “Troika of Tyranny” are taken, so perhaps “Triad of Troublemakers” or “Coalition of Chaos”—ignoring the fact that their own policies have helped push these powers together.
  • a real-world test of two competing visions of contemporary geopolitics. One version sees U.S. power as essentially undiminished and believes that a combination of material capabilities, favorable geography, and entrenched institutional capabilities will allow it to pursue an ambitious and revisionist foreign policy at little cost and with a high probability of success. The second version—to which I subscribe—sees the United States as very powerful and in a privileged position (for various reasons) but also believes there are limits to U.S. power and that it is necessary to set priorities, minimize trade-offs when possible, and collaborate with others on many issues. It also assumes that others cannot be browbeaten into abject capitulation and that effective and durable international agreements require a degree of mutual compromise, even with adversaries
Ed Webb

Coronavirus and food supply: Visa bottleneck raises labor concerns - Los Angeles Times - 0 views

  • California’s nearly $50-billion agricultural industry is bracing for a potential labor shortfall that could hinder efforts to maintain the nation’s fresh food supply amid the widening coronavirus outbreak.The immediate concern centers on a backlog in the recruitment of foreign guest workers because of the virus-related shutdown of consul offices processing agricultural H2-A visas in Mexico.
  • fears highlight a gap in the Trump administration’s market-centered approach to keeping vital industries running, which includes numerous measures aimed at supporting aid, credit and the major commodity crops in the nation’s heartland. There has been little done to address the labor-intensive fresh food crops that form the backbone of California agriculture.
  • Assurance from USDA and State were not enough to satisfy growers, shippers and contractors in California, who have been pressing for more clear answers as the scope of the pandemic comes into focus. The state has faced years of labor shortages caused by the aging of the local workforce, immigration crackdowns, improvements in job prospects in Mexico and other factors.“We don’t have enough H-2A workers coming across in normal times,”
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  • “A halt or a drastic slowdown in processing visas will have an immediate domino effect of the domestic food supply of this country,” said David Scaroni, vice president of Fresh Harvest, the country’s largest private contractor of H-2A workers. “No emergency declaration or short term provision will change this fact.”
  • “We believe because of what’s planted and what’s going to be harvested that we can meet the demand and maintain the continuity of the food supply,” Valadez said. “The question is the labor equation. The crops are going to be there. But what are we going to be able to do to get the crops out of the ground?”
  • labor contracting surges dramatically as produce shifts from the winter desert regions of California and Arizona and gets underway along the central coast. That region hosts the bulk of the state’s strawberry production and much of its spring and summer leafy greens, broccoli and cauliflower, among other crops.
  • Any shortfall or slowdown, however, would have a cascade effect across production, harvest, processing and distribution within weeks, Scaroni said. “Plants already in the ground do not know that there is a pandemic occurring. It is crucial to keep this process going as close to the prior normal to ensure a stable food supply for the coming months.”
  • deep, short-term dependency within crops and harvest areas
  • There is no evidence that contact with produce is contributing to the spread of coronavirus, federal health and safety agencies have said.
  • “Historically, farmworkers are so used to not having healthcare they just put up with being sick,” said Armando Elenes, secretary-treasurer of the United Farm Workers. “They’re going to go to work, and on the way to work, they’ll be in a car with four, five or six workers. So ‘social distancing’? Forget that.”
  • An agriculture industry source said operations dependent on food-service clients could suffer irreparable economic harm. The inability of the retail side to absorb the unused supply could leave a paradox of empty bins in grocery stores while food rots in the fields.
  • Rabobank Research predicts that effects of the pandemic will last several months. It already has affected parts of the food economy few think about, such as the boxes it’s packed in — cardboard production largely halted in China in January and February, driving up prices.
  • Wholesalers report that unusually heavy rains have created an “extreme” market for many produce items, including carrots, peppers, squash, potatoes and cauliflower. California’s citrus industry has had to slow or pause harvest during the prolonged rains of the last week, according to California Citrus Mutual. The industry had hoped to overcome most of the supply imbalances as it shifted production north and into additional states. Then the pandemic hit.
Ed Webb

The Choice Between a U.S.-Led Rules-Based Order and a Chinese 'Might-Makes-Right' One Is False - 0 views

  • the distinction between the United States’ supposed commitment to a system of rules and China’s alleged lack thereof is misleading in at least three ways. First, it overlooks the United States’ own willingness to ignore, evade, or rewrite the rules whenever they seem inconvenient
  • China accepts and even defends many principles of the existing order, although of course not all of them
  • statements such as Blinken’s imply that abandoning today’s rules-based order would leave us in a lawless, rule-free world of naked power politics, unregulated by any norms or principles whatsoever. This is simply not the case: Scholars of widely varying views understand that all international orders—global, regional, liberal, realist, or whatever—require a set of rules to manage the various interactions that inevitably arise between different polities
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  • “any intergroup order must be defined by rules of group membership and … political authority.”
  • the issue is not the United States’ preference for a “rules-based” order and China’s alleged lack of interest in it; rather, the issue is who will determine which rules pertain where
  • The United States (generally) prefers a multilateral system (albeit one with special privileges for some states, especially itself) that is at least somewhat mindful of individual rights and certain core liberal values (democratic rule, individual freedom, rule of law, market-based economies, and so on).
  • the United States also likes many existing institutions (the IMF, NATO, the World Bank, the reserve role of the dollar, to name a few) because they give the United States greater influence.
  • China favors a more Westphalian conception of order, one where state sovereignty and noninterference are paramount and liberal notions of individual rights are downplayed if not entirely dismissed. This vision is no less “rules-based” than the United States’, insofar as it draws on parts of the United Nations charter, and it would not preclude many current forms of international cooperation, including extensive trade, investment, collaboration on vital transnational issues such as climate change. China is also a vocal defender of multilateralism, even if its actual behavior sometimes violates existing multilateral norms
  • International orders inevitably reflect the underlying balance of power, and China’s rise means that its ability to shape some of the rules (or to refuse to go along with rules that it rejects) will be considerable
  • what U.S. allies really want is for the United States to take its oft-repeated commitment to a “rules-based” order more seriously.
  • China’s emergence (and, to a much lesser extent, Russia’s regional sway) gives other countries more options than they had during the unipolar era
  • Autocratic nationalists in some countries may prefer China’s explicit rejection of liberal values and ideas about sovereignty, but Beijing’s increasingly bellicose behavior and its willingness to punish others for even minor transgressions has sparked growing concerns about what a more China-centric order might be like.
  • Americans may exaggerate the benevolent nature of U.S. hegemony, but its geographic distance from others and relatively benign intentions made its position of primacy more acceptable to many other states than the overall distribution of power might suggest.
  • even like-minded allies who welcome U.S. leadership want it to be exercised more judiciously. It’s not U.S. hegemony per se that bothers them; it is the excessive exploitation of hegemonic privilege
  • The United States and China are going to have a great deal of influence over the rules that emerge either globally or within whatever partial orders each might lead. But to gain others’ compliance, they will still have to give other states at least some of what they want, too.
  • Merely showing up at major global forums, treating other participants with respect, and showing a degree of empathy for others’ concerns are going to play well. If Beijing remains committed to its self-defeating “wolf warrior diplomacy,” a U.S. charm offensive will be even more effective.
  • If Chinese leader Xi Jinping’s loftiest ambitions are realized and China eventually occupies the commanding economic heights of the 21st century, it still won’t be able to take over the world. But such a position will give it a great deal of influence over the rules of the international system, because other states will be less willing to defy it openly and forced to adapt some of their practices to conform to Chinese preferences
  • Undertaking the reforms that will be needed to retain the necessary economic strength would be good for the United States in any case
Ed Webb

The WTO 20 years after the 'battle of Seattle' | Business and Economy | Al Jazeera - 0 views

  • On the 20th anniversary of the protests against the World Trade Organization (WTO), evidence of its harm to workers, healthcare, farmers, and the environment – and particularly to developing countries – has proven its critics right.
  • At the time of the protests, the WTO was less than five years old. But critics had already seen how the largest corporations in the world had succeeded in using its founding – and the good name of trade in promoting prosperity – to achieve a new set of agreements covering not just trade in goods but also trade-related investment measures, trade-related intellectual property (IP) rules, agriculture and services. These new agreements, far from the original goals of multilateralism, gave new rights to trade (which are exercised by corporations) and constrained government regulation in the public interest. 
  • corporate elites hijacked “trade” and rigged the rules to distribute income upwards, while reducing protections for people who work. Highly paid professionals (like doctors) are protected (by being able to regulate their own licensing) and businesses are given market access rights and predictability. Meanwhile, workers are forced into unfair competition without a minimum floor for protections, and developing country workers have been kept at the lowest levels of the global value chains
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  • As rich countries have been allowed to maintain their level of agricultural subsidies – which are mostly handed out to large producers, not family farms – developing countries have not been allowed under WTO rules to subsidise food production for domestic consumption to guarantee food security, nor to protect their farmers from unfair dumping.
  • subsidies for the environmentally damaging production of oil and gas remain undisciplined, while countries have successfully sued each other in the WTO for directing subsidies towards greener fuels, especially if they try to create jobs at the same time.
  • The environment has suffered as countries use environmental exploitation as a comparative advantage, and trade is responsible for a growing percentage of the greenhouse gases that contribute to climate change.
  • supporters of the WTO were able to get developing countries to agree to a new round of trade talks only by claiming it would be a “development” round – ie, one that put the needs of developing countries at its heart.  Since then, unfortunately, developed countries have never delivered on their promises to address the constraints that bad WTO rules put on development
  • most developing countries that have gained from trade have done so by exporting to China, whose growth is usually attributed to its divergences from the WTO model. 
  • At a time when most conversations regarding Big Tech are around the need for stronger antitrust and tax enforcement, and how their model of surveillance capitalism should not be allowed to shape the contours of our media, democracy, human rights, education and social relationships – or even how to break them up – they are working through the WTO, without public debate, to gain a new constitution that will consolidate their power and profits.
  • the problem with the dispute system is that it adjudicates according to a set of rules guided by corporate interests
  • The crisis is that people around the world have suffered through nearly 25 years of a damaging pro-corporate trade model, encapsulated by the WTO, and the domestic policies of austerity that have led to uprisings on four continents, mass migrations, and the election of right-wing governments in many countries.
  • We all need a global economy that facilitates decent jobs, access to affordable medicines, healthy food, and a thriving environment. Nearly all governments agreed to this mandate through the Sustainable Development Goals (SDGs) and Agenda 2030 in 2015. The rules of the global economy should be shaped around ensuring that trade can help achieve these goals, but at the minimum, it should not constrain governments from doing so.
  • The solution to the current conflicts on trade policy is not a false nationalism that nonetheless expands corporate control, nor a defence of the current failed corporate system. We need a wholly different system than that embodied in the WTO, just as the protesters clamoured for in Seattle 20 years ago. That will require a multilateral vision of ecological stability, shared prosperity, and leadership committed to that vision. Until then, we can expect more crises. 
Ed Webb

Covid crisis is fuelling food price rises for world's poorest | Food security | The Guardian - 0 views

  • While the health and economic impacts of the pandemic have been devastating, the rise in hunger has been one of its most tangible symptoms.Income losses have translated into less money in people’s pockets to buy food while market and supply disruptions due to movement restrictions have created local shortages and higher prices, especially for perishable food. This reduced access to nutritious food will have negative impacts on the health and cognitive development of Covid-era children for years to come.
  • Global food prices, as measured by a World Bank food price index, rose 14% last year
  • We need to remain vigilant and avoid backsliding into export restrictions and hardened borders that make food – and other essentials – scarce or more costly
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  • In a review of Covid-19 social response programmes, cash transfer programmes were found to be: Short-term in their duration – lasting just over three months on average Small in value – an average of $6 (£4.30) per capita in low-income countries Limited in scope – with many in need remaining uncovered
  • The world’s food systems endured numerous shocks in 2020, from economic impacts on producers and consumers to desert locust swarms and erratic weather. All indicators suggest that this may be the new normal. The ecosystems we rely on for water, air and food supply are under threat. Zoonotic diseases are on the rise owing to growing demographic and economic pressures on land, animals and wildlife.
  • A warming planet is contributing to costlier and more frequent extreme weather events. And as people pack into low-quality housing in urban slums or vulnerable coastal areas, more are living in the path of disease and climate disaster.
  • We need sustained financing for approaches that prioritise human, animal and planetary health; restore landscapes and diversify crops to improve nutrition; reduce food loss and waste; strengthen agricultural value chains to create jobs and recover lost incomes; and deploy effective climate-smart agriculture techniques on a much greater scale.
  • Focusing on food security would address a basic injustice: almost one in 10 people live in chronic hunger in an age of food waste and plenty. This focus would also strengthen our collective ability to weather the next storm, flood, drought, or pandemic – with safe and nutritious food for all.
Ed Webb

Gorbachev's Pizza Hut Ad Is His Most Bizarre Legacy - 0 views

  • There’s an undeniable voyeuristic frisson of seeing a man who once commanded a superpower hawking pizza
  • it’s a beautiful short film and a very weird advertisement: Who would have thought that a bunch of Muscovites bickering about the end of communism would be a natural pitch for pizza?
  • In 1991, the heads of the former Soviet republics had voted to give Gorbachev a pension of 4,000 rubles per month—but it was not indexed to inflation. By 1994, according to Meduza, his pension was worth less than $2 a month.
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  • Gorbachev was determined to stay in Russia and fight for reform, not to take up a life of well-compensated exile abroad. To do that, he would need money to fund his center, his staff, and his activities—urgently. As Gorbachev later told France 24 when asked about the ad, “I needed to finish the building. The workers started to leave—I needed to pay them.” To keep his vision going—and to stay relevant in a world moving beyond him—he would need a lot of money. More, even, than he could make by giving lectures. More than anyone in Russia could, or wanted to, give him.
  • (The exact amount that Gorbachev would receive for the commercial is secret, but it may have been one of the largest talent fees in history—an amount that would be easily in the seven figures today, adjusted for inflation.)
  • The concept obviously exploited the shock value of having a former world leader appear. But the ad played on the fact that Gorbachev was far more popular outside Russia than inside it. As late as October 1991, a Wall Street Journal/NBC News poll showed that 54 percent of Americans wanted to see Gorbachev as the head of the Soviet Union, compared with only 18 percent for Yeltsin. And warm feelings toward Gorbachev persisted in the West long after the Soviet Union dissolved.
  • The negotiations took months. Partly, this represented a negotiating tactic: The longer the negotiations drew out, the higher Gorbachev’s talent fee would be. But it also represented real hesitation on Gorbachev’s part.
  • a Moscow Pizza Hut near Red Square, which had opened in 1990 as part of a Soviet-era deal with the chain’s then-parent company, PepsiCo. That arrangement, which had been hailed as the “deal of the century,” flopped when the Soviet Union collapsed, killing both the Russian economy and the restaurant’s supply chain. (Overnight, Lithuanian mozzarella became an expensive import from a foreign country.)
  • Filming the interior scenes took the better part of a day in a different location, inside a real Moscow Pizza Hut. (Even though the bulk of the commercial is just a conversation around a table, multiple sources stressed that filming such a scene—with its complicated sightlines—is enormously challenging.) Coincidentally, it also happened to be Thanksgiving Day in the United States. Since the commercial was being shot at a working Pizza Hut, the cast and crew—including Gorbachev—ate pizza, which was “one of the most interesting Thanksgiving dinners I’ve ever had,” said Shaine, who was seated with Gorbachev.
  • Gorbachev’s granddaughter Anastasia Virganskaya ended up eating the slice.
  • BBDO Chairman Philip Dusenberry insisted that the agency’s advertisements be cinematic in their quality. The Gorbachev production lived up to that standard. Informed estimates put the commercial’s budget in the low millions of dollars. Darbyshire, who wrote the script in English, went through three translators to get the right level of idiomatic Russian. To capture the beautiful establishing shots of Red Square and its domed churches, the crew hefted the film cameras high atop the Kremlin itself. And somehow the production managed to get the whole square shut down for the entire shoot.
  • Gorbachev finally assented—with conditions. First, he would have final approval over the script. That was acceptable. Second, he would not eat pizza on film. That disappointed Pizza Hut. “We always wanted the hero of the ad to eat the pizza,”
  • Gorbachev justified his decision to do the commercial on two grounds. First, the former leader argued, “pizza is for everyone.” It was nicely communal: “It’s not only consumption. It’s also socializing.”
  • Besides the expense and effort of the shoot and the postproduction (an original score recorded live!), the dialogue is entirely in Russian with English subtitles—even though Americans hate subtitles.
  • The commercial closes with the cheers resounding throughout Red Square and then all of Moscow in progressively wider shots with celebratory music underneath. “It has this impression, you might say the illusion, that the entire nation feels this is a wonderful thing that happened.” Of course, it is an illusion—in this case, taking the actor’s dialogue, adding reverb, and layering the chants over each other. But it’s also one that suited both the marketing needs of Pizza Hut and the myth-making needs of Gorbachev. Pizza Hut gets to be not only the avatar of global capitalism but also the restaurant that brings people together. In the commercial’s fiction, at least, Gorbachev gets the hero’s reception that Raisa always thought he deserved.
  • The future turned out to be much dimmer than the ad anticipated. A little less than a year after the ad was filmed, in August 1998, the Russian financial system collapsed. The economic recovery that had begun to take hold was wiped out. As the Moscow Times wrote, “The whole Russian economy fell to pieces at a stroke.”
  • Whatever optimism made the pro-Gorbachev slant of the ad even dimly plausible as a representative sampling of Muscovite opinion vanished. News reports suggest that the Pizza Hut location in which the commercial was filmed itself closed during the crash.
  • this fictional family, like most Russians, probably spent the early 2000s supporting the increasingly hard-line Vladimir Putin, seeing him as “the only person who can take them back to stability and potential for growth,” Weber said. Out with pizza, in with the vertical of power.
  • despite Gorbachev’s ambitions that his post-presidency could push his country toward greater openness, Russia has slipped ever further along a much less free path than he once envisioned
  • A tightening of laws on foreign support for nonprofits inside Russia squeezed the Gorbachev Foundation; many of his family members have reportedly moved to Germany. In a book released last month, Gorbachev even weakly offered praise for his successor on the grounds that Putin “inherited chaos” and that his moves could be justified if “the aim of authority is to create conditions for developing a strong modern democracy.”
  • In a 2018 poll by the respected Levada Center (another byproduct of Gorbachev’s reforms), 66 percent of Russians responded that they regretted the collapse of the Soviet Union. So, of course, does Gorbachev. His ambition was to perfect the country, not to end it.
  • As a leader, Russians rank Gorbachev well below Joseph Stalin.
Ed Webb

Does the Pentagon's Checkbook Diplomacy Actually Work? - Defense One - 0 views

  • As we discuss in a new report with the Cato Institute, “‘Money as a Weapons System’: The Promises and Pitfalls of Foreign Defense Contracting,” much of the U.S. government’s procurement spending, in fact, takes place overseas, with contracts being awarded to foreign firms
  • upwards of $1 billion each year – is awarded not through competition but to hand-picked firms
  • contracts go to secure military access, promote local economic development, and even wage counterinsurgency campaigns
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  • Providing jobs is a good way to curry favor with local populations in places where the United States wants to maintain a military presence. Other foreign policy tools may not reach the right people. The well-known risk with foreign aid, for example, is that recipient regimes will divert it for their own purposes instead of investing in public goods. Contracting directly with local firms might help bypass corrupt governments. Subscribe Receive daily email updates: Subscribe to the Defense One daily. Be the first to receive updates. But there is a big problem with this seemingly sound logic: to date, there is no evidence that it works as promised.
  • By some estimates, ten percent of defense-related logistics contracts ended up in the hands of insurgents
  • The law limits the government’s ability to dictate the hiring of firms it does business with. This caused problems in Djibouti, where the United States has its only base in Africa, Camp Lemonnier. In 2013, the American company in charge of base support fired local Djiboutian employees in search of cheaper labor, despite a diplomatic understanding between the United States and Djibouti that the base would provide jobs for Djiboutians. Between the fallout and threat of hosting a Russian base, the Djiboutian government managed to hike Washington’s annual base rent from $30 million to $63 million.
  • Congress could make preferential procurement authorities conditional upon independently conducted studies of this spending’s effectiveness
  • First, we need to be able to answer questions such as: who is getting the business and how many jobs are created? That will enable systematic study of questions such as: what are the downstream effects on local markets? Do local jobs actually buy local goodwill?
Ed Webb

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

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

Inside the Pro-Israel Information War - 0 views

  • a rare public glimpse of how Israel and its American allies harness Israel’s influential tech sector and tech diaspora to run cover for the Jewish state as it endures scrutiny over the humanitarian impact of its invasion of Gaza.
  • reveal the degree to which, in the tech-oriented hasbara world, the lines between government, the private sector, and the nonprofit world are blurry at best. And the tactics that these wealthy individuals, advocates, and groups use -- hounding Israel critics on social media; firing pro-Palestine employees and canceling speaking engagements; smearing Palestinian journalists; and attempting to ship military-grade equipment to the IDF -- are often heavy-handed and controversial.
  • "President Biden seems incapable of using the one policy tool that may actually produce a change in Israel's actions that might limit civilian deaths, which would be to condition military aid that the United States provides to Israel,” Clifton added. He partially attributed the inability of the U.S. government to rein in Israel’s war actions to the “lobbying and advocacy efforts underway.”
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  • Members of the hasbara-oriented tech world WhatsApp group have eagerly taken up the call to shape public opinion as part of a bid to win what’s been described as the “second battlefield” and “the information war.”
  • The group, which also includes individuals affiliated with the influential American Israel Public Affairs Committee (AIPAC), has tirelessly worked to fire employees and punish activists for expressing pro-Palestinian views. It has also engaged in a successful push to cancel events held by prominent Palestinian voices, including an Arizona State University talk featuring Rep. Rashida Tlaib, a Michigan Democrat who is the only Palestinian-American in Congress. The group has also circulated circulated a push poll suggesting Rep. Tlaib should resign from Congress and provided an automatic means of thanking Rep. Dan Goldman, D-N.Y., for voting for her censure.
  • J-Ventures has also veered into an unusual kind of philanthropy: shipments of military supplies. The group has attempted to provide tactical gear to Israel’s equivalent of the U.S. Navy SEALs, known as Shayetet-13, and donated to a foundation dedicated to supporting the IDF’s undercover “Duvdevan” unit, which is known for infiltrating Palestinian populations. Many of the shipments intended for the IDF were held up at U.S. airports over customs issues.
  • Israel would soon lose international support as its military response in Gaza kills more Palestinian civilians, noted Schwarzbad, who stressed the need to refocus attention on Israeli civilian deaths. “Try to use names and ages whenever you can,” she said. Don’t refer to statistics of the dead, use stories. “Say something like, 'Noah, age 26, was celebrating with her friends at a music festival on the holiest day of the week, Shabbat. Imagine if your daughter was at Coachella.’”
  • The Israel-based venture capitalist outlined three categories of people for whom outreach, rather than attacks, is the best strategy. The first group is what he dubbed “the impressionables,” who are "typically young people, they reflexively support the weak, oppose the oppressor," but "are not really knowledgeable." For this category of people, the goal is not to "convince them of anything," but to "show them that it's much more complicated than it seems." Seeding doubt, he said, would make certain audiences think twice before attending a protest. "So it's really about creating some kind of confusion,” Fisher continued, “but really, just to make it clear to them that it's really a lot more complicated."
  • The final group consists of those who are "reflexively pro-Israel, kind of ‘Israel, right or wrong.’" Members of this group "are not actually very knowledgeable," so they needed to be equipped with the right facts to make them "more effective in advocating for Israel,” Fisher said.
  • Last year, the Israeli government revoked funding for a theater in Jaffa for screening the film, while government figures called for other repercussions to Netflix for streaming it.
  • efforts to discredit HRW stem directly from its outspoken criticism of Israel’s record in the occupied territories and its military conduct. An HRW report released the same day as Fisher’s remarks cited the World Health Organization’s conclusion that the IDF had killed roughly one child in Gaza every 10 minutes since the outbreak of violence in October.
  • members of the J-Ventures group chat also internally circulated a petition for Netflix to remove the award-winning Jordanian film ‘Farha,’ claiming that its portrayal of the actions of IDF soldiers during the 1948 displacement of Palestinians constituted “blood libel,” while another said the film was based “antisemitism and lies.”
  • Fisher repeatedly noted the need to offer accurate and nuanced information to rebut critics of Israel's actions. Yet at times, he offered his own misinformation, such as his claim that "anti-Israel" human rights organizations like Amnesty International and Human Rights Watch "didn't condemn the October 7th massacre."
  • One member noted that despite the controversy over a scene in the film in which Israeli soldiers execute a Palestinian family, Israeli historians have documented that “such actions have indeed happened.” The critique was rejected by other members of the group, who said the film constituted “incitement” against Jews.
  • a variety of automated attempts to remove pro-Palestinian content on social media
  • Over the last two months, dozens of individuals have been fired for expressing opinions related to the war in Gaza and Israel. Most have been dismissed for expressing pro-Palestinian views, including a writer for PhillyVoice, the editor of ArtForum, an apprentice at German publishing giant Axel Springer, and Michael Eisen, the editor-in-chief of eLife, a prominent science journal. Eisen’s offense was a tweet sharing a satirical article from The Onion seen as sympathetic to the plight of Palestinians in Gaza.
  • The WhatsApp chats provide a rare look at the organizing efforts behind the broad push to fire critics of Israel and suppress public events featuring critics of the Israeli government. The scope is surprisingly broad, ranging from investigating the funding sources of student organizations such as Model Arab League, to monitoring an organizing toolkit of a Palestine Solidarity Working Group – “They are verrrry well organized”, one member exclaimed – to working directly with high-level tech executives to fire pro-Palestinian employees.
  • One participant even suggested that they appeal to the university’s “woke” aversion to exposing students to uncomfortable ideas.   The participant drafted a sample letter claiming that Tlaib’s appearance threatened ASU’s “commitment to a safe and inclusive environment.” The following day, ASU officially canceled the Tlaib event, citing “procedural issues.”
  • Lior Netzer, a business consultant based in Massachusetts, and a member of the J-Ventures WhatsApp group, requested help pressuring the University of Vermont to cancel a lecture with Mohammed El-Kurd, a Palestinian writer for The Nation magazine. Netzer shared a sample script that alleged that El-Kurd had engaged in anti-Semitic speech in the past.The effort also appeared to be successful. Shortly after the letter-writing campaign, UVM canceled the talk, citing safety concerns.
  • The WhatsApp group maintained a special focus on elite universities and white-collar professional positions. Group members not only circulated multiple petitions to fire professors and blacklist students from working at major law firms for allegedly engaging in extremist rhetoric, but a J-Ventures spreadsheet lists specific task force teams to "get professors removed who teach falcehoods [sic] to their students." The list includes academics at Cornell University, the University of California, Davis, and NYU’s Abu Dhabi campus, among others.
  • Many of the messages in the group focused on ways in which to shape student life at Stanford University, including support for pro-Israel activists. The attempted interventions into campus life at times hinged on the absurd. Shortly after comedian Amy Schumer posted a now-deleted satirical cartoon lampooning pro-Palestinian protesters as supporters of rape and beheadings, Epstein, the operating partner at Bessemer Ventures Partners and member of the J-Ventures WhatsApp group, asked, “How can we get this political cartoon published in the Stanford Daily?"
  • The influence extended beyond the business and tech world and into politics. The J-Ventures team includes advocates with the most powerful pro-Israel lobbying organization, the American Israel Public Affairs Committee, better known as AIPAC. Officials in the J-Ventures group include investor David Wagonfeld, whose biography states he is “leading AIPAC Silicon Valley;” Tartakovsky, listed as “AIPAC Political Chair;” Adam Milstein, a real estate executive and major AIPAC donor; and AIPAC-affiliated activists Drs. Kathy Fields and Garry Rayant. Kenneth Baer, a former White House advisor to President Barack Obama and communications counsel to the Anti-Defamation League, is also an active member of the group.
  • Other fundraising efforts from J-Ventures included an emergency fund to provide direct support for IDF units, including the naval commando unit Shayetet-13. The leaked planning document also uncovers attempts to supply the mostly female Caracal Battalion with grenade pouches and to donate M16 rifle scope mounts, “FN MAG” machine gun carrier vests, and drones to unnamed IDF units. According to the planning document, customs enforcement barriers have stranded many of the packages destined for the IDF in Montana and Colorado.
  • the morning after being reached for comment, Hermoni warned the WhatsApp group against cooperating with our inquiries. “Two journalists … are trying to have an anti semi[tic] portrait of our activity to support Israel and reaching out to members,” he wrote. “Please ignore them and do not cooperate.” he advised. Shortly thereafter, we were kicked out of the group
  • Victory on the “media battlefield,” Hoffman concluded, “eases pressure on IDF to go quicker, to wrap up” and “goes a long way to deciding how much time Israel has to complete an operation.”
Ed Webb

'Yes, He Would': Fiona Hill on Putin and Nukes - POLITICO - 0 views

  • “Ukraine has become the front line in a struggle, not just between democracies and autocracies but in a struggle for maintaining a rules-based system in which the things that countries want are not taken by force,” Hill said. “Every country in the world should be paying close attention to this.”
  • Putin doesn’t even seem like he’s trying to make a convincing case. We saw the same thing in the Russian response at the United Nations. The justification has essentially been “what-about-ism”: ‘You guys have been invading Iraq, Afghanistan. Don’t tell me that I can’t do the same thing in Ukraine.”
  • It’s reestablishing Russian dominance of what Russia sees as the Russian “Imperium.” I’m saying this very specifically because the lands of the Soviet Union didn’t cover all of the territories that were once part of the Russian Empire. So that should give us pause.
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  • This visceral emotion is unhealthy and extraordinarily dangerous because there are few checks and balances around Putin
  • Putin’s not looking so great, he’s been rather puffy-faced. We know that he has complained about having back issues. Even if it’s not something worse than that, it could be that he’s taking high doses of steroids, or there may be something else. There seems to be an urgency for this that may be also driven by personal factors.
  • just a couple of days before the invasion of Ukraine in a little-noticed act, Azerbaijan signed a bilateral military agreement with Russia. This is significant because Azerbaijan’s leader has been resisting this for decades. And we can also see that Russia has made itself the final arbiter of the future relationship between Armenia and Azerbaijan. Georgia has also been marginalized after being a thorn in Russia’s side for decades. And Belarus is now completely subjugated by Moscow.
  • what Putin is saying now is that Ukraine doesn’t belong to Ukrainians. It belongs to him and the past. He is going to wipe Ukraine off the map, literally, because it doesn’t belong on his map of the “Russian world.” He’s basically told us that.
  • If there is serious resistance, he may not have sufficient force to take the country for a protracted period. It also may be that he doesn’t want to occupy the whole country, that he wants to break it up, maybe annex some parts of it, maybe leave some of it as rump statelets or a larger rump Ukraine somewhere, maybe around Lviv. I’m not saying that I know exactly what’s going on in his head. And he may even suggest other parts of Ukraine get absorbed by adjacent countries.
  • what Putin wants isn’t necessarily to occupy the whole country, but really to divide it up. He’s looked at Afghanistan, Iraq, Libya and other places where there’s a division of the country between the officially sanctioned forces on the one hand, and the rebel forces on the other. That’s something that Putin could definitely live with — a fractured, shattered Ukraine with different bits being in different statuses.
  • In 2020, Putin had the Russian Constitution amended so that he could stay on until 2036, another set of two six-year terms. He’s going to be 84 then. But in 2024, he has to re-legitimate himself by standing for election. The only real contender might have been Alexei Navalny, and they’ve put him in a penal colony. Putin has rolled up all the potential opposition and resistance, so one would think it would be a cakewalk for him in 2024. But the way it works with Russian elections, he actually has to put on a convincing show that demonstrates that he’s immensely popular and he’s got the affirmation of all the population.
  • The last time that his brand got stale, it was before the annexation of Crimea. That put him back on the top of the charts in terms of his ratings.
  • Unfortunately, we have politicians and public figures in the United States and around Europe who have embraced the idea that Russia was wronged by NATO and that Putin is a strong, powerful man and has the right to do what he’s doing
  • Putin came to power after a series of operations that many have seen as a kind of false flag — bombings of buildings around Russia that killed Russian citizens, hundreds of them, followed by a war in Chechnya. That led to Putin coming to power as a wartime president. The annexation of Crimea in 2014 also came at a difficult time for Putin. Now we’re seeing another big military operation less than two years before he needs to stand for election again
  • If all was peaceful and quiet, why would you need Vladimir Putin?
  • We have had a long-term policy failure going back to the end of the Cold War in terms of thinking about how to manage NATO’s relations with Russia to minimize risk. NATO is a like a massive insurer, a protector of national security for Europe and the United States. After the end of the Cold War, we still thought that we had the best insurance for the hazards we could face — flood, fire etc. — but for a discounted premium. We didn’t take adequate steps to address and reduce the various risks. We can now see that that we didn’t do our due diligence and fully consider all the possible contingencies, including how we would mitigate Russia’s negative response to successive expansions.
  • Putin tried to warn Trump about this, but I don’t think Trump figured out what he was saying. In one of the last meetings between Putin and Trump when I was there, Putin was making the point that: “Well you know, Donald, we have these hypersonic missiles.” And Trump was saying, “Well, we will get them too.” Putin was saying, “Well, yes, you will get them eventually, but we’ve got them first.” There was a menace in this exchange. Putin was putting us on notice that if push came to shove in some confrontational environment that the nuclear option would be on the table.
  • Putin has articulated an idea of there being a “Russky Mir” or a “Russian World.” The recent essay he published about Ukraine and Russia states the Ukrainian and Russian people are “one people,” a “yedinyi narod.” He’s saying Ukrainians and Russians are one and the same. This idea of a Russian World means re-gathering all the Russian-speakers in different places that belonged at some point to the Russian tsardom.
  • The Russians have already used a weapons-grade nerve agent, Novichok. They’ve used it possibly several times, but for certain twice. Once in Salisbury, England, where it was rubbed all over the doorknob of Sergei Skripal and his daughter Yulia, who actually didn’t die; but the nerve agent contaminated the city of Salisbury, and anybody else who came into contact with it got sickened. Novichok killed a British citizen, Dawn Sturgess, because the assassins stored it in a perfume bottle which was discarded into a charity donation box where it was found by Sturgess and her partner. There was enough nerve agent in that bottle to kill several thousand people. The second time was in Alexander Navalny’s underpants.
  • if anybody thinks that Putin wouldn’t use something that he’s got that is unusual and cruel, think again. Every time you think, “No, he wouldn’t, would he?” Well, yes, he would. And he wants us to know that, of course.
  • similar to Hitler, he’s using a sense of massive historical grievance combined with a veneer of protecting Russians and a dismissal of the rights of minorities and other nations to have independent countries in order to fuel territorial ambitions?
  • there were an awful lot of people around Europe who became Nazi German sympathizers before the invasion of Poland. In the United Kingdom, there was a whole host of British politicians who admired Hitler’s strength and his power, for doing what Great Powers do, before the horrors of the Blitz and the Holocaust finally penetrated.
  • The thing about Putin is, if he has an instrument, he wants to use it. Why have it if you can’t? He’s already used a nuclear weapon in some respects. Russian operatives poisoned Alexander Litvinenko with radioactive polonium and turned him into a human dirty bomb and polonium was spread all around London at every spot that poor man visited. He died a horrible death as a result.
  • we are treading back through old historical patterns that we said that we would never permit to happen again
  • Our investments are not just boosting business profits, or Russia’s sovereign wealth funds and its longer-term development. They now are literally the fuel for Russia’s invasion of Ukraine.
  • If Western companies, their pension plans or mutual funds, are invested in Russia they should pull out. Any people who are sitting on the boards of major Russian companies should resign immediately. Not every Russian company is tied to the Kremlin, but many major Russian companies absolutely are, and everyone knows it.
  • our international allies, like Saudi Arabia, should be increasing oil production right now as a temporary offset. Right now, they are also indirectly funding war in Ukraine by keeping oil prices high.
  • India abstained in the United Nations, and you can see that other countries are feeling discomforted and hoping this might go away. This is not going to go away, and it could be “you next” — because Putin is setting a precedent for countries to return to the type of behavior that sparked the two great wars which were a free-for-all over territory. Putin is saying, “Throughout history borders have changed. Who cares?”
  • Ukraine has become the front line in a struggle, not just for which countries can or cannot be in NATO, or between democracies and autocracies, but in a struggle for maintaining a rules-based system in which the things that countries want are not taken by force. Every country in the world should be paying close attention to this. Yes, there may be countries like China and others who might think that this is permissible, but overall, most countries have benefited from the current international system in terms of trade and economic growth, from investment and an interdependent globalized world. This is pretty much the end of this. That’s what Russia has done.
  • What stops a lot of people from pulling out of Russia even temporarily is, they will say, “Well, the Chinese will just step in.” This is what every investor always tells me. “If I get out, someone else will move in.” I’m not sure that Russian businesspeople want to wake up one morning and find out the only investors in the Russian economy are Chinese, because then Russia becomes the periphery of China, the Chinese hinterlands, and not another great power that’s operating in tandem with China.
  • We keep thinking of World War I, World War II as these huge great big set pieces, but World War II was a consequence of World War I. And we had an interwar period between them. And in a way, we had that again after the Cold War. Many of the things that we’re talking about here have their roots in the carving up of the Austro-Hungarian Empire and the Russian Empire at the end of World War I. At the end of World War II, we had another reconfiguration and some of the issues that we have been dealing with recently go back to that immediate post-war period. We’ve had war in Syria, which is in part the consequence of the collapse of the Ottoman Empire, same with Iraq and Kuwait.
  • All of the conflicts that we’re seeing have roots in those earlier conflicts. We are already in a hot war over Ukraine, which started in 2014. People shouldn’t delude themselves into thinking that we’re just on the brink of something. We’ve been well and truly in it for quite a long period of time.
  • this is also a full-spectrum information war, and what happens in a Russian “all-of-society” war, you soften up the enemy. You get the Tucker Carlsons and Donald Trumps doing your job for you. The fact that Putin managed to persuade Trump that Ukraine belongs to Russia, and that Trump would be willing to give up Ukraine without any kind of fight, that’s a major success for Putin’s information war. I mean he has got swathes of the Republican Party — and not just them, some on the left, as well as on the right — masses of the U.S. public saying, “Good on you, Vladimir Putin,” or blaming NATO, or blaming the U.S. for this outcome. This is exactly what a Russian information war and psychological operation is geared towards. He’s been carefully seeding this terrain as well. We’ve been at war, for a very long time.
  • What Russia is doing is asserting that “might makes right.” Of course, yes, we’ve also made terrible mistakes. But no one ever has the right to completely destroy another country — Putin’s opened up a door in Europe that we thought we’d closed after World War II.
Ed Webb

Obama Bid for Europe Trade Pact Stirs Hope on Both Sides - www-nc.nytimes.com - Readability - 1 views

  • Experts cited tough economic times on both sides of the Atlantic and a perceived need among European leaders for a cause to unify their frayed union as major reasons that an agreement might be reached now, where past efforts have failed. But an even greater consideration, they said, was the growing economic might of China
  • Negotiations are not expected to be easy, with entrenched interests, especially in protected sectors of the agriculture industry, fighting to maintain their subsidies and preferences. European consumers have rejected the kinds of genetically modified crops3 that are commonplace in the United States but are known across the Atlantic as Frankenfoods. Nevertheless, Mr. Obama’s announcement was applauded by leading politicians and business groups in Europe, especially here in Germany, and so far the news has not provoked the instant union opposition in the United States that free-trade talks with underdeveloped, low-wage countries do.
  • In a Democratic administration, free-trade agreements are much easier to reach with higher-wage, unionized countries like those in Europe that do not spook trade unions. And the cross-pollination between American and European companies, as in the auto sector, also is expected to blunt opposition from labor groups
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  • China may present the single most compelling factor. There is an increasing awareness that to deal with the challenge of China’s rapidly growing economy, Europe and the United States will have to learn to cooperate better
  • European leaders, including Prime Minister David Cameron of Britain and Chancellor Angela Merkel of Germany, have been pushing for a trade deal as a low-cost way of stimulating their struggling economies. The United States Chamber of Commerce and large companies like General Electric have also lobbied for an agreement
  • Potentially more important than abolishing tariffs, but also much more complicated, would be a deal that harmonized regulations on products like food, cars, toys and pharmaceuticals. Automobile manufacturers would like to see agreement on safety and emissions standards for cars, reducing or eliminating the need to build different versions for the American and European markets. Matthias Wissmann, head of the German Association of the Automotive Industry, said that harmonizing safety features would save several hundred dollars per automobile. Mr. De Gucht, who is expected to lead the talks on the European side, said that a deal could provide vital leverage over emerging powerhouses like China
Ed Webb

How Many Guns Did the U.S. Lose Track of in Iraq and Afghanistan? Hundreds of Thousands. - The New York Times - 0 views

  • In all, Overton found, the Pentagon provided more than 1.45 million firearms to various security forces in Afghanistan and Iraq, including more than 978,000 assault rifles, 266,000 pistols and almost 112,000 machine guns. These transfers formed a collage of firearms of mixed vintage and type: Kalashnikov assault rifles left over from the Cold War; recently manufactured NATO-standard M16s and M4s from American factories; machine guns of Russian and Western lineage; and sniper rifles, shotguns and pistols of varied provenance and caliber, including a large order of Glock semiautomatic pistols, a type of weapon also regularly offered for sale online in Iraq. Advertisement Continue reading the main story Many of the recipients of these weapons became brave and important battlefield allies. But many more did not. Taken together, the weapons were part of a vast and sometimes minimally supervised flow of arms from a superpower to armies and militias often compromised by poor training, desertion, corruption and patterns of human rights abuses. Knowing what we know about many of these forces, it would have been remarkable for them to retain custody of many of their weapons. It is not surprising that they did not.
  • the Pentagon said it has records for fewer than half the number of firearms in the researchers’ count — about 700,000 in all
  • Overton’s analysis also does not account for many weapons issued by the American military to local forces by other means, including the reissue of captured weapons, which was a common and largely undocumented practice.
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  • One point is inarguable: Many of these weapons did not remain long in government possession after arriving in their respective countries. In one of many examples, a 2007 Government Accountability Office report found that 110,000 Kalashnikov assault rifles and 80,000 pistols bought by the United States for Iraq’s security forces could not be accounted for — more than one firearm for every member of the entire American military force in Iraq at any time during the war. Those documented lapses of accountability were before entire Iraqi divisions simply vanished from the battlefield, as four of them did after the Islamic State seized Mosul and Tikrit in 2014, according to a 2015 Army budget request to buy more firearms for the Iraqi forces to replace what was lost.
  • According to its tally, the American military issued contracts potentially worth more than $40 billion for firearms, accessories and ammunition since Sept. 11, including improvements to the ammunition plants required to keep the cartridge production going. Most of these planned expenditures were for American forces, and the particulars tell the story of two wars that did not go as pitched. More than $4 billion worth of contracts was issued for small arms, including pistols, machines guns, assault rifles and sniper rifles, and more than $11 billion worth was issued for associated equipment, from spare machine-gun barrels to sniper-rifle scopes, according to Overton’s count. A much larger amount — nearly $25 billion — was issued for ammunition or upgrades to ammunition plants to keep those firearms supplied. That last figure aligns with what most any veteran of ground combat in Iraq and Afghanistan could tell you — American troops have been involved in a dizzying number of gunfights since 2001, burning through mountains of ammunition along the way.
  • In April, after being approached by The New York Times and reviewing data from Armament Research Services, a private arms-investigation consultancy, Facebook closed many pages in the Middle East that were serving as busy arms bazaars, including pages in Syria and Iraq on which firearms with Pentagon origins accounted for a large fraction of the visible trade
  • The American arming of Syrian rebels, by both the Central Intelligence Agency and the Defense Department, has also been troubled by questions of accountability and outright theft in a war where the battlefield is thick with jihadists aligned with Al Qaeda or fighting under the banner of the Islamic State.
  • many new arms-trading Facebook pages have since cropped up, including, according to their own descriptions, virtual markets operating from Baghdad and Karbala
  • The data show large purchases of heavy-machine guns and barrels. This is a wink at the shift in many American units from being foot-mobile to vehicular, as grunts buttoned up within armored trucks and needed turret-mounted firepower to defend themselves — a matériel adaptation forced by ambushes and improvised bombs, the cheaply made weapons that wearied the most expensive military in the world.
  • a startlingly risky aspect of the Pentagon’s arming of local forces with infantry arms: the wide distribution of anti-armor weapons, including RPG-7s, commonly called rocket-propelled grenades, and recoilless weapons, including the SPG-9. Each of these systems fires high-explosive (and often armor-piercing) projectiles, and each was commonly used by insurgents in attacks. After the opening weeks of each war, the only armor on either battlefield was American or associated with allied and local government units, which made the Pentagon’s practice of providing anti-armor weapons to Afghan and Iraqi security forces puzzling. Why would they need anti-armor weapons when they had no armor to fight? All the while rockets were somehow mysteriously being fired at American convoys and patrols in each war.
  • a portrait of the Pentagon’s bungling the already-awkward role it chose for itself — that of state-building arms dealer, a role that routinely led to missions in clear opposition to each other. While fighting two rapidly evolving wars, the American military tried to create and bolster new democracies, governments and political classes; recruit, train and equip security and intelligence forces on short schedule and at outsize scale; repair and secure transportation infrastructure; encourage the spread or restoration of the legal industry and public services; and leave behind something more palatable and sturdy than rule by thugs.
  • The procession of arms purchases and handouts has continued to this day, with others involved, including Iran to its allies in Iraq and various donors to Kurdish fighters. In March, Russia announced that it had given 10,000 Kalashnikov assault rifles to Afghanistan, already one of the most Kalashnikov-saturated places on earth. If an analysis from the United States’ Special Inspector General for Afghanistan Reconstruction, or Sigar, is to be believed, Afghanistan did not even need them. In 2014 the inspector general reported that after the United States decided to replace the Afghan Army’s Kalashnikovs with NATO-standard weapons (a boon for the rifles’ manufacturer with a much less obvious value for an already amply armed Afghan force), the Afghan Army ended up with a surplus of more than 83,000 Kalashnikovs. The United States never tried to recover the excess it had created, giving the inspector general’s office grounds for long-term worry. “Without confidence in the Afghan government’s ability to account for or properly dispose of these weapons,” it noted, “Sigar is concerned that they could be obtained by insurgents and pose additional risks to civilians.” Write A Comment
  • What to do? If past is precedent, given enough time one of the United States’ solutions will be, once again, to ship in more guns.
Ed Webb

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

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

Brexit risks unravelling UK's role in the web of trade _ The Exchange.pdf - 0 views

  • thedeficitongoodsandserviceswillhavetoshrink.ThebenignwayfortheadjustmenttocomeaboutwouldbeabigimprovementinUKexports.However,reducedaccesstoimportantexportmarkets,particularlyfortheservicesinwhichtheUKisstrong,wasthebiggestsinglefactorbehindthenear-universalagreementamongeconomiststhatleavingtheEUwillharmtheBritisheconomy
  • Thefirstunbundlingwasdrivenbyfallingtransportationcostsbetweenthe1940sand1980.Itledtogreatlyincreasedtradeinfinalmanufacturedgoodssuchaswashingmachinesandcars.Thesecondunbundlinghasbeendrivenbyreducedcostsofinformationandcommunicationsince1980,andhasledtotherapidgrowthoftradeincomponentsandervices
  • Ifyouhaveanunskilledworkforceandweakinfrastructure,itiseasiertobecomeamanufacturerofballbearingsthanofentiresophisticatedmachinetools,andthenbuildontheexperiencegained.AdamSmith’sprosperitythroughspecialisationandthedivisionoflabourhasbeguntooperateatafarfiner-grainedlevelthanbefore.
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  • UKexporters’abilitytoreducetheirpricesoverseaswillbelimitedbecausetheyimportahighproportionoftheircomponentsandinputs,whichraisestheircosts
  • heUS’sdeficitwithChinaismuchsmallerseenthroughthislensbecauseChinahastoimportcomponents,includingfromtheUS,fortheproductsitexports.Researchersarebeginningtousearecent“valueadded”tradedatabasecreatedbytheWorldTradeOrganisationandtheOrganisationforEconomicCo-operationandDevelopmenttoexplorethiscomplexity
  • Becauseoftheinterconnectednessthroughsupplychains,anyreductionsinexportsofgoodsandservicesintheyearsaheadwillhavewiderramificationsthanisapparentatfirstsight.Thankstothesecondunbundling,theweboftradeconnectingcountriesisintricate,acat’s-cradleofeconomicrelationships.TheBrexitvotethreatenstakingapairofshearstotheparticipationofUKbusinessesinthesechains.Thereismuchatstakeinthenegotiationsahead.Disruptiontothecountry’stradeinthe2020scouldbefar,farmorecostlythantheretreatfromglobalisationacenturyago
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    Highlighted version of blog post assigned for 170, fa16.
Ed Webb

Simon Dalby, 400ppm: Anthropocene Geopolitics | Society and Space - Environment and Planning D - 0 views

  • Humanity is remaking the biosphere; producing the new natures in which the human future will play out. Hence the now widespread use of the term Anthropocene for the period of planetary history in which the dominant ecological force is humanity, or more precisely, fossil fueled industrial capitalist humanity.
  • Natural environments are no longer in any meaningful sense the given context for human existence; they are being remade by land use changes, urbanization and by both technologies and species moved and recombined in numerous artificial assemblages. Atlases with their designations of planetary biomes frequently need replacement with a dynamic cartography charting the changing “anthromes” that are the new terrestrial ecological patterns that matter.
  • Globalization now has to be understood as a process of material transformation quite as much as a matter of trade, culture and politics crossing frontiers. The processes whereby business decisions are made to produce particular products by using certain technologies is key to understanding the future of the planet; economic geography has become essential to geomorphology.
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  • The Westphalian political imaginary of separate competing territorial states is a spatial arrangement singularly unsuited to the collective tasks ahead, but it is the institutional context within which we have to act.
Caitlin Yaeger

Chinese Taste for Chicken Feet May Save U.S. Exports - NYTimes.com - 0 views

  • About half of the chicken parts sold to China are wings and feet, which are worth only a few cents a pound in the United States. As delicacies in China, they fetch 60 cents to 80 cents a pound, a price that no other foreign market comes close to matching, according to industry experts.
  • “If we are playing a game of chicken with China we are going to be big losers.”
  •  
    China is threatening to cut off imports of American chicken but the Chinese value our large chicken feet too much.
  •  
    Nice find! Comparative advantage in action.
Ed Webb

Despite Slump, U.S. Role as Top Arms Supplier Grows - NYTimes.com - 0 views

  • The United States signed weapons agreements valued at $37.8 billion in 2008, or 68.4 percent of all business in the global arms bazaar, up significantly from American sales of $25.4 billion the year before. Italy was a distant second, with $3.7 billion in worldwide weapons sales in 2008, while Russia was third with $3.5 billion in arms sales last year — down considerably from the $10.8 billion in weapons deals signed by Moscow in 2007.
  • The United States was the leader not only in arms sales worldwide, but also in sales to nations in the developing world, signing $29.6 billion in weapons agreements with these nations, or 70.1 percent of all such deals.The study found that the larger arms deals concluded by the United States with developing nations last year included a $6.5 billion air defense system for the United Arab Emirates, a $2.1 billion jet fighter deal with Morocco and a $2 billion attack helicopter agreement with Taiwan. Other large weapons agreements were reached between the United States and India, Iraq, Saudi Arabia, Egypt, South Korea and Brazil.
  • The top buyers in the developing world in 2008 were the United Arab Emirates, which signed $9.7 billion in arms deals; Saudi Arabia, which signed $8.7 billion in weapons agreements; and Morocco, with $5.4 billion in arms purchases.
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