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anonymous

Why Free Markets? - 2 views

  • The short answer, which I will assert here and defend below, is that whatever the intent behind government regulation of markets, it almost always ends up working in the interest of the rich and powerful and does little to protect the interest of those with modest means and little access to power.  If a commitment to social justice demands that we care first and foremost about the least well off among us, supporting government regulation may well violate that commitment.
  • why might libertarians, and bleeding heart ones at that, argue that markets should be free of government regulations?
  • As Hayek made clear 66 years ago, the problem we face when try to “construct” an economic order is how to best make use of all of this knowledge, which is dispersed, contextual, and often tacit. 
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  • Mises and Hayek also argued that because this knowledge is structurally dispersed, contextual and tacit, it cannot be aggregated by government planners and regulators (nor, it’s worth noting, by private actors).
  • So one problem facing regulators is that they lack the knowledge necessary to know what people value and how much, so in deciding what to regulate and how, they are acting on incomplete and often erroneous information.  By trying to override the market, they are substituting a less informationally-rich system for a more rich one.
  • In the face of these repeated failures, it’s very easy to imagine, and there’s plenty of evidence to support it, that regulators and the politicians who oversee them will start to act in their own political self-interest.  Without the ability to make reliable decisions on the objective merits, self-interest will slowly dominate.  Regulators will try to serve the needs of those who will keep them in power and supply them with healthy budgets.  So-called “Capture Theory” explains that it then becomes easy for regulators to be “captured” by the industries they regulate and then regulate in ways that favor the industry.
  • about 75% of antitrust cases are initiated not by the government but by private firms unhappy with how their competition has behaved.  Private actors constantly engage in lobbying and rent-seeking for regulations that will benefit them and/or harm their competition.
  • For me, as an economist, the argument against a great deal of regulation is precisely that it harms the least well off it is trying to help and provides unwarranted privileges for those who need them least. 
  •  Economic systems are inherent unstable, dynamically evolving things.   In studying them, we are always studying a moving target.  To my mind, that makes equilibrium models less generally applicable than is often held to be the case.
  • I have great sympathy for this line of argument, but write to make two points.
  • First, I think the danger of governmental regulation goes beyond the mere possibility of "capture" of the regulatory apparatus by the powerful. The threat is not just this, but that once the authority to regulate is well-established, the state can use this and other economic tools to "buy off" various constitutencies until the opposition to state authority becomes too weak to prevent a very dangerous concentration of power.
  • Second, there is also a purely moral, but non-consequentialist, argument against regulation.
  • That suggests that human institutions - complexity of parts notwithstanding - often exhibit various aggregate patterns of behavior that correlate with measurable variables, and that can be understood and predicted with reasonable degrees of confidence, and thus that the outcomes of various kinds of higher-level global interventions can similarly be predicted with some accuracy.
  • There is no fundamental theoretical difference between states and other large human organizations that would for some reason result in the inability of states to successfully regulate significant fields of aggregate economic behavior as a result of micro-level calculation problems.
  • This is not an argument for any particular regulatory action.  It is an argument that whether these treatments work is an empirical question that cannot be deduced a priori from the kinds of simplified toy models that are wheeled out in an Economics 101 classes or from the armchairs of either libertarian or socialist philosophers.
  • Philosophers are good at the logical and conceptual analysis of conundrums that occur in the theoretical levels of a science.   But when they venture too far into the way the actual world works, they easily lose their bearings due to their surfeit of rationalistic mental habits and intolerance of detail.
  • Property rights are not actualized in the real human world by philosophical ruminations on the state of nature.  They are actualized by courts, and lawmakers, and executives backed up by police and security services - people with guns and other means of enforcing the laws.  There has never been a durable form of human social life where the power to regulate was not "granted."
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    "My first post this week led to some interesting discussion in the comments, which has in turn led me to this post. One issue that came up there was, and I paraphrase: "Okay, fine, markets really do benefit the poor, but the dispute between modern liberals and libertarians is not over 'markets' but over 'free markets.' Libertarians don't want the regulations that liberals do and saying that 'markets' help the poor doesn't help us resolve this issue." Fair enough. So why might libertarians, and bleeding heart ones at that, argue that markets should be free of government regulations?"
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    I don't know that free markets help the poor so much as they allow more opportunity to the poor. And where free markets lack is in actually funding the poor, where there's a presumption that they deserve poverty.
anonymous

Five Billion Years of Solitude: Lee Billings on the Science of Reaching the Stars - 0 views

  • The question of habitability is a second-order consideration when it comes to Gliese 581g, and that fact in itself reveals where so much of this uncertainty comes from. As of right now, the most interesting thing about the "discovery" of Gliese 581g is that not everyone is convinced the planet actually exists. That's basically because this particular detection is very much indirect - the planet's existence is being inferred from periodic meter-per-second shifts in the position of its host star.
  • So it's very difficult to just detect these things, and actually determining whether they are much like Earth is a task orders of magnitude more difficult still. Notice how I'm being anthropocentric here: "much like Earth." Astrobiology has been derisively called a science without a subject. But, of course, it does have at least one subject: our own living planet and its containing solar system.
  • This is really a chicken-and-egg problem: To know the limits of life in planetary systems, we need to find life beyond the Earth. To find life beyond Earth, it would be very helpful to know the limits of life in planetary systems. Several independent groups are trying to circumvent this problem by studying abiogenesis in the lab - trying to in effect create life, alien or otherwise, in a test tube.
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  • I do think humans are motivated to daydream about extraterrestrial intelligence, and, to put a finer point on it, extraterrestrial "people." They are motivated to dream about beings very much like them, things tantalizingly exotic but not so alien as to be totally incomprehensible and discomforting. Maybe those imagined beings have more appendages or sense organs, different body plans and surface coverings, but they typically possess qualities we recognize within ourselves: They are sentient, they have language, they use tools, they are curious explorers, they are biological, they are mortal - just like humans. Perhaps that's a collective failure of imagination, because it's certainly not very easy to envision intelligent aliens that are entirely divergent from our own anthropocentric preconceptions. Or perhaps it's more diagnostic of the human need for context, affirmation, and familiarity. Why are people fascinated by their distorted reflections in funhouse mirrors? Maybe it's because when they recognize their warped image, at a subconscious level that recognition reinforces their actual true appearance and identity.
  • More broadly, speculating about extraterrestrial intelligence is an extension of three timeless existential questions: What are we, where do we come from, and where are we going?
  • The first pessimistic take is that the differences between independently emerging and evolving biospheres would be so great as to prevent much meaningful communication occurring between them if any intelligent beings they generated somehow came into contact.
  • The second pessimistic take is that intelligent aliens, far from being incomprehensible and ineffable, would be in fact very much like us, due to trends of convergent evolution, the tendency of biology to shape species to fit into established environmental niches.
  • It stands to reason that any alien species that managed to embark on interstellar voyages to explore and colonize other planetary systems could, like us, be a product of competitive evolution that had effectively conquered its native biosphere. Their intentions would not necessarily be benevolent if they ever chose to visit our solar system.
  • The third pessimistic scenario is an extension of the second, and postulates that if we did encounter a vastly superior alien civilization, even if they were benevolent they could still do us harm through the simple stifling of human tendencies toward curiosity, ingenuity, and exploration.
  • Right now reaching low-Earth orbit generally comes at a cost somewhere between $5,000 to $10,000 per kilogram, depending on which launch vehicle is used. This creates an enormous barrier to making profitable ventures in space or building major space-based infrastructure. It also engenders further high costs in the design, fabrication, and testing of most spaceflight hardware, which due to the high cost to orbit must be made as lightweight and reliable as possible.
  • If launch costs fall well below $1,000 per kilogram, a host of economic activities that were previously prohibitively expensive should at a stroke become cheap enough to be readily profitable.
  • I'm an American citizen, so I will focus my comments on the American space program and the American political system. I'm sad to say that in this country, the most powerful nation presently on the planet, space science, exploration, and development are treated as fringe issues at best. Too many politicians, if they consider these issues at all, treat them in one of two ways: Dismissively, as things to be joked about, or cynically, as little more than pork-barrel job programs for their districts, things to be defended purely for the status quo and only given token lip-service when absolutely necessary.
  • And who can blame them? Look at what happens to politicians when they try to talk seriously and ambitiously about space today. They are lampooned and ridiculed by the media and by their political opponents as starry-eyed idealists who are disconnected from everyday realities.
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    "One of the best briefings on the state of the art of interstellar exploration is Lee Billings' essay "Incredible Journey," recently reprinted in a wonderful new anthology called The Best Science Writing Online 2012, edited by Scientific American's Bora Zivkovic and Jennifer Ouellette. I'm very honored to have a piece in the anthology myself: my NeuroTribes interview with John Elder Robison, author of the bestselling memoir of growing up with autism, Look Me in The Eye, and other books. When SciAm's editors suggested that each author in the book interview one of the other authors, I jumped at the chance to interview Billings about his gracefully written and informative article about the practical challenges of space flight. Billings is a freelance journalist who has written for Nature, New Scientist, Popular Mechanics, and Seed. He lives outside New York City with his wife, Melissa."
anonymous

Pew Study: Americans Abandoning News Outlets, Citing Lower Quality - 0 views

  • Nearly a third of those surveyed, or 31%, said they had ceased relying on a particular news outlet because it no longer provided them with the sort of news they were used to getting.
  • To learn exactly what respondents meant by that, Pew asked whether the issue was quantity — ie. fewer stories — or quality. Overwhelmingly, they chose the latter, with 60.7% citing “less complete” coverage as the reason for turning away, versus 23.5% who chose “fewer stories.”
  • Yet as sensitive as they are to the declining quality of news, Americans aren’t particularly perceptive about the financial pressures underlying the trend. A full 60% said they knew nothing whatsoever (36%) or very little (24%) about the economic forces disrupting the news business, although awareness was somewhat higher among the affluent and educated.
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  • Curiously, even among those who claimed to know at least a little about the situation, a majority of 57% didn’t believe news outlets’ economic woes limited their ability to produce quality coverage.
  • With newspaper newsrooms employing 28% fewer journalists than they did in 2001 (fewer than 40,000 nationally), that’s a bizarre finding. How could anyone, you might wonder, not see the link between a dramatic reduction in the number of people producing the news and the thoroughness of that product?
  • Consumers are sending a message: They want the same quality of news they’ve always known, not excuses, and they’ll punish news outlets that fail to meet that standard by taking their business elsewhere.
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    "Like all vicious cycles, the relationship between the declining fortunes of news outlets and the shrinking of their audiences is a difficult one to untangle, a chicken-and-egg problem. Newspaper circulations have been sliding for decades, starting well before digital media started siphoning off ad dollars and forcing widespread newsroom cutbacks that, inevitably, resulted in a poorer editorial product."
anonymous

A New Reality in U.S.-Israeli Relations - 0 views

  • In the United States, the political crisis over the federal budget and the struggle to grow the economy and reduce unemployment has dominated the president's and the country's attention.
  • The Israeli elections turned on domestic issues, ranging from whether the ultra-Orthodox would be required to serve in Israel Defense Forces, as other citizens are, to a growing controversy over economic inequality in Israel. 
  • What is interesting is at this point, while Israelis continue to express concern about foreign policy, they are most passionate on divisive internal social issues. Similarly, although there continues to be a war in Afghanistan, the American public is heavily focused on economic issues. Under these circumstances the interesting question is not what Obama and Netanyahu will talk about but whether what they discuss will matter much. 
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  • After more than a decade of being focused on the Islamic world and moving aggressively to try to control threats in the region militarily, the United States is moving toward a different stance. The bar for military intervention has been raised.
  • Therefore, the United States has, in spite of recent statements, not militarily committed itself to the Syrian crisis, and when the French intervened in Mali the United States played a supporting role. The intervention in Libya, where France and the United Kingdom drew the United States into the action, was the first manifestation of Washington's strategic re-evaluation.
  • That desire was there from the U.S. experience in Iraq and was the realization that the disposal of an unsavory regime does not necessarily -- or even very often -- result in a better regime.
  • The United States' new stance ought to frighten the Israelis. In Israel's grand strategy, the United States is the ultimate guarantor of its national security and underwrites a portion of its national defense. If the United States becomes less inclined to involve itself in regional adventures, the question is whether the guarantees implicit in the relationship still stand.
  • The issue is not whether the United States would intervene to protect Israel's existence; save from a nuclear-armed Iran, there is no existential threat to Israel's national interest. Rather, the question is whether the United States is prepared to continue shaping the dynamics of the region in areas where Israel lacks political influence and is not able to exert military control.
  • To put it differently, the Israelis' understanding of the American role is to control events that endanger Israel and American interests under the assumption that Israeli and American interests are identical. The idea that they are always identical has never been as true as politicians on both sides have claimed, but more important, the difficulties of controlling the environment have increased dramatically for both sides.
  • The problem for Israel at this point is that it is not able to do very much in the area that is its responsibility.
  • But the most shocking thing to Israel was how little control it actually had over events in Egypt and the future of its ties to Egypt.
  • But the power of the military will not be the sole factor in the long-term sustainability of the treaty. Whether it survives or not ultimately is not a matter that Israel has much control over.
  • The Israelis have always assumed that the United States can control areas where they lack control. And some Israelis have condemned the United States for not doing more to manage events in Egypt. But the fact is that the United States also has few tools to control the evolution of Egypt, apart from some aid to Egypt and its own relationship with the Egyptian military.
  • It may or may not be in the American interest to do something in any particular case, but the problem in this case is that although a hostile Egypt is not in the Americans' interest, there is actually little the United States can do to control events in Egypt.
  • Syrian President Bashar al Assad is a known quantity to Israel. He is by no means a friend, but his actions and his father's have always been in the pursuit of their own interest and therefore have been predictable. The opposition is an amorphous entity whose ability to govern is questionable and that is shot through with Islamists who are at least organized and know what they want.
  • Indeed, the hints of American weapons shipments to the rebels at some point concern Israel as much as no weapons shipments.
  • The Iranian situation is equally complex. It is clear that the Israelis, despite rhetoric to the contrary, will not act unilaterally against Iran's nuclear weapons. The risks of failure are too high, and the consequences of Iranian retaliation against fundamental American interests, such as the flow of oil through the Strait of Hormuz, are too substantial.
  • The American view is that an Iranian nuclear weapon is not imminent and Iran's ultimate ability to build a deliverable weapon is questionable. Therefore, regardless of what Israel wants, and given the American doctrine of military involvement as a last resort when it significantly affects U.S. interests, the Israelis will not be able to move the United States to play its traditional role of assuming military burdens to shape the region.
  • There has therefore been a very real if somewhat subtle shift in the U.S.-Israeli relationship. Israel has lost the ability, if it ever had it, to shape the behavior of countries on its frontier. Egypt and Syria will do what they will do. At the same time, the United States has lost the inclination to intervene militarily in the broader regional conflict and has limited political tools. Countries like Saudi Arabia, which might be inclined to align with U.S. strategy, find themselves in a position of creating their own strategy and assuming the risks. 
  • For the United States, there are now more important issues than the Middle East, such as the domestic economy.
  • It will continue to get aid that it no longer needs and will continue to have military relations with the United States, particularly in developing military technology. But for reasons having little to do with Israel, Washington's attention is not focused on the region or at least not as obsessively as it had been since 2001. 
  • Like Israel, the United States has realized the limits and costs of such a strategy, and Israel will not talk the United States out of it, as the case of Iran shows. In addition, there is no immediate threat to Israel that it must respond to. It is, by default, in a position of watching and waiting without being clear as to what it wants to see. Therefore it should be no surprise that Israel, like the United States, is focused on domestic affairs.
  • It also puts Israel in a reactive position. The question of the Palestinians is always there. Israel's policy, like most of its strategic policy, is to watch and wait. It has no inclination to find a political solution because it cannot predict what the consequences of either a solution or an attempt to find one would be.
  •  Israel has lost the initiative and, more important, it now knows it has lost the initiative. It has looked to the United States to take the initiative, but on a much broader scale Washington faces the same reality as Israel with less at stake and therefore less urgency.
  • This is not a strain in the U.S.-Israeli relationship in the sense of anger and resentment, although those exist on both sides. Rather it is like a marriage that continues out of habit but whose foundation has withered.
  • In private I expect a sullen courtesy and in public an enthusiastic friendship, much as an old, bored married couple, not near a divorce, but far from where they were when they were young. Neither party is what it once was; each suspects that it is the other's fault. In the end, each has its own fate, linked by history to each other but no longer united.
    • anonymous
       
      What a hell of a closer.
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    "Normally, summits between Israel and the United States are filled with foreign policy issues on both sides, and there will be many discussed at this meeting, including Iran, Syria and Egypt. But this summit takes place in an interesting climate, because both the Americans and Israelis are less interested in foreign and security matters than they are in their respective domestic issues."
anonymous

David Stockman's Dystopia - 0 views

  • What's more, his perps would have to be held in separate cells, because they're of remarkably different stripes. Milton Friedman is implicated (his sin: advocating managing the money supply), but so is Paul Krugman (and of course his spiritual mentor John Maynard Keynes).  Franklin Roosevelt is on the list of "policy villains," but so is Richard Nixon, who dealt the final blow to the gold standard. Former Reagan economic advisor Art Laffer (Mr. Supply Side) is there, a few names away from Larry Summers (these days, Mr. Demand Side), who served, most recently, as Barack Obama's top economic advisor.
  • So what's the connection? I'll give you a hint: They all advocated economic interventions. They thought they could help boost growth, lower unemployment, raise revenues, stimulate investment, smooth out volatility, and so on. And, as Stockman sees it, the problem is not simply that they all failed miserably. It's that their failure has doomed America.
  • It's easy to poke fun at a rant like this, and most of it is just plain wrong (more on that in a moment). But what's more interesting is to figure out where Stockman is on target.
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  • There are, unquestionably, aspects of American capitalism that have been corrupted -- in no small part through money in politics, something Stockman vividly rails against. He's also right that the U.S. economy is seriously underperforming and bad policy is implicated. One of his hobbyhorses, crony capitalism -- a frequent target of the very progressive economist Dean Baker -- is surely holding back growth, skewing the distribution of income and wealth, and steering investment not toward its most productive uses, but to those most favored by the tax code.
  • Unfortunately, those points are not central to his argument.
  • What Stockman is most worked up about is that for almost a century, economic policymakers have ... um ... made policy, and that's led to cheap money, high indebtedness, and econo-moral turpitude.
  • Stockman insists that the market should work out its failures without all these meddlers trying to fix them (there must be "a sweeping divorce of the state and the market economy"); no government investments in industry; central banks shouldn't mess with the money supply, and so on.
    • anonymous
       
      Sigh... standard LP refrain.
  • The reader gets tons of invective against interventionists from FDR to Obama, but never a compelling explanation as to why America would have been better off if we did nothing to lessen the economic pain caused by the Great Depression or the Great Recession by applying Keynesian stimulus. Nor is there any analysis of why mainstream economics is wrong to believe, based on decades of empirical evidence from economies across the globe, that such stimulus, both fiscal and monetary, actually works.
  • Similarly, not only is there absolutely no benefit assigned to any of the Federal Reserve's actions over the years to push back on inflation and joblessness (and no question, they've made mistakes), but Stockman, with apparent ignorance of the historical record, atavistically pines for the gold standard.
  • If you want to get rid of central banks, you'd better come up with some other stabilizing mechanism a whole lot better than gold buggery. And I'm quite certain that would lead you right back to independent central banks.
  • Moreover, sovereign debt is neither bad nor good -- its assessment must be situational. Even a cursory analysis should stress that debt that's paying for inefficient health care is a serious problem. Debt that's financing productivity-enhancing public goods or temporarily offsetting a large demand contraction is a very different story.
  • Stockman never explains how a market failure such as underinvestment in such sectors would be overcome by simply not having the government help directly by subsidizing research and development or backstopping credit to offset the high risk premiums investors would otherwise demand.
  • Instead, we get a "revisionist history of our era," as he puts it, where Keynes and FDR are villains, Herbert Hoover and Calvin Coolidge heroes, gold is king, central bankers are legal counterfeiters, and debt is always evil.
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    "Why Reagan's former budget chief is like a crazy person howling in the wind. Let's ignore him."
anonymous

How Bayes' Rule Can Make You A Better Thinker - 1 views

  • To find out more about this topic, we spoke to mathematician Spencer Greenberg, co-founder of Rebellion Research and a contributing member of AskAMathematician where he answers questions on math and physics. He has also created a free Bayesian thinking module that's available online.
  • Bayes’s Rule is a theorem in probability theory that answers the question, "When you encounter new information, how much should it change your confidence in a belief?" It’s essentially about making decisions under uncertainty, and how we should update or revise our theories as new evidence emerges. It can also be used to help us reach decisions in those circumstances when very few observations or pieces of evidence are available. And it can also be used to help us avoid common mistakes and fallacies in our thinking.
  • The key to Bayesianism is in understanding the power of probabilistic reasoning. But unlike games of chance, in which there’s no ambiguity and everyone agrees on what’s going on (like the roll of die), Bayesians use probability to express their degree of belief about something.
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  • When it comes to the confidence we have in our beliefs — what can be expressed in terms of probability — we can’t just make up any number we want. There’s only one consistent way to handle those degrees in beliefs.
  • In the strictest sense, of course, this requires a bit of mathematical knowledge. But Greenberg says there’s still an easy way to use this principle in daily life — and one that can be converted to plain English.
  • Greenberg says it’s the question of evidence which he should apply, which goes like this:: Assuming that our hypothesis is true, how much more plausible, or likely, is the evidence compared to the hypothesis if it was not true?
  • “It’s important to note that the idea here is not to answer the question in a precise way — like saying that it’s 3.2 times more likely — rather, it’s to get a rough sense. Is it a high number, a modest number, or a small number?”
  • To make Bayes practical, we have to start with the belief of how likely something is. Then we need to ask the question of evidence, and whether or not we should increase the confidence in our beliefs by a lot, a little, and so on.
  • “Much of the time people will automatically try to shoot down evidence, but you can get evidence for things that are not true. Just because you have evidence doesn’t mean you should change your mind. But it does mean that you should change your degree of belief.”
  • Greenberg also describes Representativeness Heuristic in which people tend to look at how similar things are.
  • Greenberg also says that we should shy away from phrases like, “I believe,” or “I don’t believe.” “That’s the wrong way to frame it,” he says. “We should think about things in terms of how probable they are. You almost never have anything close to perfect certainty.”
  • “Let’s say you believe that your nutrition supplement works,” he told us, “Then you get a small amount of evidence against it working, and you completely write that evidence off because you say, ‘well, I still believe it works because it’s just a small amount of evidence.’ But then you get more evidence that it doesn’t work. If you were an ideal reasoner, you’d see that accumulation of evidence, and every time you get that evidence, you should believe less and less that the nutritional supplements are actually working.” Eventually, says Greenberg, you end up tipping things so that you no longer believe. But instead, we end up never changing our mind.
  • “You should never say that you have absolute certainty, because it closes the door to being able to revise your certainty in light of new information,” Greenberg told io9. “And the same thing can be said for having zero percent certainty about something happening. If you’re at 100% certainty, then the correct way of updating is to stay at 100% forever, and no amount of evidence can tip you.”
  • Lastly, he also says that probabilities can depend on the observer — what is a kind of probability relativity. We all have access to different information, so different people should assign different rates of probability to different things based on different sets of evidence.
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    "Having a strong opinion about an issue can make it hard to take in new information about it, or to consider other options when they're presented. Thankfully, there's an old rule that can help us avoid this problem - and even help us make good decisions when we're uncertain. Here's how Bayesian Reasoning works, and why it can make you a better thinker."
anonymous

Beyond the Post-Cold War World - 2 views

  • An era ended when the Soviet Union collapsed on Dec. 31, 1991. The confrontation between the United States and the Soviet Union defined the Cold War period. The collapse of Europe framed that confrontation.
  • Three things defined the post-Cold War world.
  • The first was U.S. power. The second was the rise of China as the center of global industrial growth based on low wages. The third was the re-emergence of Europe as a massive, integrated economic power.
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  • Meanwhile, Russia, the main remnant of the Soviet Union, reeled while Japan shifted to a dramatically different economic mode.
  • The post-Cold War world had two phases. The first lasted from Dec. 31, 1991, until Sept. 11, 2001. The second lasted from 9/11 until now.
  • The initial phase of the post-Cold War world was built on two assumptions.
  • The first assumption was that the United States was the dominant political and military power but that such power was less significant than before, since economics was the new focus. The second phase still revolved around the three Great Powers -- the United States, China and Europe -- but involved a major shift in the worldview of the United States, which then assumed that pre-eminence included the power to reshape the Islamic world through military action while China and Europe single-mindedly focused on economic matters. 
  • In this new era, Europe is reeling economically and is divided politically.
  • Nothing is as it was in 1991.
  • Europe primarily defined itself as an economic power, with sovereignty largely retained by its members but shaped by the rule of the European Union. Europe tried to have it all: economic integration and individual states. But now this untenable idea has reached its end and Europe is fragmenting.
  • Germany wants to retain the European Union to protect German trade interests and because Berlin properly fears the political consequences of a fragmented Europe.
  • But as the creditor of last resort, Germany also wants to control the economic behavior of the EU nation-states.
  • In the indebted peripheral region, Cyprus has been treated with particular economic savagery as part of the bailout process. Certainly, the Cypriots acted irresponsibly. But that label applies to all of the EU members, including Germany, who created an economic plant so vast that it could not begin to consume what it produces -- making the country utterly dependent on the willingness of others to buy German goods.
  • There are thus many kinds of irresponsibility.
  • Europe can no longer afford pride, and it is every nation for itself. Cyprus set the precedent that the weak will be crushed. It serves as a lesson to other weakening nations, a lesson that over time will transform the European idea of integration and sovereignty.
  • In such an environment, sovereignty becomes sanctuary.
  • Authoritarian nationalism is an old European cure-all, one that is re-emerging, since no one wants to be the next Cyprus.
  • Leaving aside all the specific arguments, extraordinarily rapid growth in an export-oriented economy requires economic health among its customers.
  • It is nice to imagine expanded domestic demand, but in a country as impoverished as China, increasing demand requires revolutionizing life in the interior. China has tried this many times. It has never worked, and in any case China certainly couldn't make it work in the time needed.
  • Instead, Beijing is maintaining growth by slashing profit margins on exports.
  • It is interesting to recall the extravagant claims about the future of Japan in the 1980s. Awestruck by growth rates, Westerners did not see the hollowing out of the financial system as growth rates were sustained by cutting prices and profits. Japan's miracle seemed to be eternal. It wasn't, and neither is China's. And China has a problem that Japan didn't: a billion impoverished people. Japan exists, but behaves differently than it did before; the same is happening to China.
  • Both Europe and China thought about the world in the post-Cold War period similarly. Each believed that geopolitical questions and even questions of domestic politics could be suppressed and sometimes even ignored.
  • They believed this because they both thought they had entered a period of permanent prosperity.
    • anonymous
       
      See also: All those 1990's op-eds about "the end of history" which now seem so completely ludicrious that it's hard for me to believe that so many Americans and Europeans ever bought it.
  • Periods of prosperity, of course, always alternate with periods of austerity, and now history has caught up with Europe and China.
  • And the United States has emerged from the post-Cold War period with one towering lesson: However attractive military intervention is, it always looks easier at the beginning than at the end.
    • anonymous
       
      You think?
  • The greatest military power in the world has the ability to defeat armies. But it is far more difficult to reshape societies in America's image.
  • A Great Power manages the routine matters of the world not through military intervention, but through manipulating the balance of power.
    • anonymous
       
      This is where I start to sound like a broken record: American civic perception is wildly at odds with MANY of the realities of international relations.
  • The United States has emerged into the new period with what is still the largest economy in the world with the fewest economic problems of the three pillars of the post-Cold War world. It has also emerged with the greatest military power.
  • But it has emerged far more mature and cautious than it entered the period. There are new phases in history, but not new world orders.
  • Eras unfold in strange ways until you suddenly realize they are over.
    • anonymous
       
      This is so curt and quotable and (I think) so true. Like John Green says, one non-revolution leads to another until... well, you realize you HAD a revolution. :)
  • Now, we are at a point where the post-Cold War model no longer explains the behavior of the world. We are thus entering a new era. I don't have a good buzzword for the phase we're entering, since most periods are given a label in hindsight.
  • But already there are several defining characteristics to this era we can identify.
  • First, the United States remains the world's dominant power in all dimensions. It will act with caution, however, recognizing the crucial difference between pre-eminence and omnipotence.
  • Second, Europe is returning to its normal condition of multiple competing nation-states. While Germany will dream of a Europe in which it can write the budgets of lesser states, the EU nation-states will look at Cyprus and choose default before losing sovereignty.
  • Third, Russia is re-emerging. As the European Peninsula fragments, the Russians will do what they always do: fish in muddy waters.
  • The deals they are making, of which this is a small sample, are not in their economic interests, but they increase Moscow's political influence substantially. 
  • Fourth, China is becoming self-absorbed in trying to manage its new economic realities.
  • And fifth, a host of new countries will emerge to supplement China as the world's low-wage, high-growth epicenter. Latin America, Africa and less-developed parts of Southeast Asia are all emerging as contenders
  • There is a paradox in all of this. While the United States has committed many errors, the fragmentation of Europe and the weakening of China mean the United States emerges more powerful, since power is relative.
  • It was said that the post-Cold War world was America's time of dominance. I would argue that it was the preface of U.S. dominance.
    • anonymous
       
      This is a hard sell to many Americans (and others) that don't have the benefit of hindsight to guide their judgements. Of course, I'm a bit of StratFor buff and so trust George & company on this, but there are plenty of aspects to explore and debate. I hope to do both with my readers in the coming years.
  • Its two great counterbalances are losing their ability to counter U.S. power because they mistakenly believed that real power was economic power. The United States had combined power -- economic, political and military -- and that allowed it to maintain its overall power when economic power faltered. 
  • A fragmented Europe has no chance at balancing the United States.
  • And while China is reaching for military power, it will take many years to produce the kind of power that is global, and it can do so only if its economy allows it to. The United States defeated the Soviet Union in the Cold War because of its balanced power. Europe and China defeated themselves because they placed all their chips on economics. And now we enter the new era.
  •  
    "Many shifts in the international system accompanied the end of the Cold War. In fact, 1991 was an extraordinary and defining year. The Japanese economic miracle ended. China after Tiananmen Square inherited Japan's place as a rapidly growing, export-based economy, one defined by the continued pre-eminence of the Chinese Communist Party. The Maastricht Treaty was formulated, creating the structure of the subsequent European Union. A vast coalition dominated by the United States reversed the Iraqi invasion of Kuwait."
anonymous

Companies won't even look at résumés of the long-term unemployed - 0 views

  • Matthew O’Brien reports on a striking new paper by Rand Ghayad and William Dickens of Northeastern University. The researchers sent out 4,800 fake résumés at random for 600 job openings. What they found is that employers would rather call back someone with no relevant experience who’s only been out of work for a few months than someone with lots of relevant experience who’s been out of work for longer than six months.
  • Here’s what this looks like in chart form:
  • the long-term unemployed are struggling to find work no matter how many job openings pop up.
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  • there’s some ambiguity about whether companies are discriminating irrationally against the unemployed or whether they have good reason for screening out people who have been out of work for six months or more.
  • Dozens of states have been considering legislation that would make it illegal to discriminate against the long-term unemployed. Some proposals would even allow unsuccessful applicants to sue under the same discrimination laws that apply to race or gender bias.
  • These proposals have plenty of critics. But it’s also unclear whether they would have much impact.
  • The Obama administration, for its part, has proposed a few other ideas, including training programs and tax credits for businesses that hire the long-term unemployed. (The latter were even included in the American Jobs Act that Republicans blocked in Congress.)
  • Yet economists have argued that while these programs might help at the margins, they won’t necessarily bring down the overall unemployment rate. For instance, a company might just hire a subsidized worker over someone else.
  • It’s worth noting, as Matt Yglesias points out here, that long-term unemployment was a major structural problem after the Great Depression too. But as this old essay by Richard Jensen suggests, it took World War II to finally solve the problem: “The war, by removing millions of prime men from the labor market, by restructuring the work process, by subsidizing wages, and by massive retraining, finally gave the private sector the methods and the incentives to rehire the hard-core.” That’s not really an option today, but it underscores a bleak fact about the recession. When the labor market stays weak for years on end, the damage becomes long-lasting — and extremely difficult to reverse.
  •  
    "Here's one big reason why America's unemployment crisis may be here to stay. Thanks to the lasting effects of the recession, there are currently 4.7 million workers who have been out of work for at least 27 weeks. And new research suggests that employers will almost never consider hiring them."
anonymous

Things We Don't Know: The beast with a billion backs: Part 2 - 0 views

  • Whilst we can’t yet manipulate the microbiome with any finesse, we do influence it through our immune system, evolved over time to cope with invading pathogens and keep them in check.
  • Two different species of bacteria with disks soaked in different antibiotics. The bacteria on the left are susceptible to all the antibiotics tested, while the bacteria on the right are resistant to most of them.
  • If the immune system was a sniper, antibiotics would be a bomb, they don’t discriminate between targets.
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  • they broadly target bacterial cellular processes, like cell wall building, protein synthesis or metabolism.
  • But their use throws up a number of questions in the light of our growing awareness of the microbiomes importance. How does the microbiome, as a whole, weather such attacks? How does it recover? And why should we even care?
  • Well, we know that antibiotic use in early life is associated with a greater risk of developing allergic conditions like asthma1 and irritable bowel disorders2 (IBS) in later life, which is a pretty good reason to care on its own.
  • There’s a growing body of evidence suggesting we rely on the microbiome3, to some extent, to tutor our immune systems.
  • Another problem is that your microbiome’s response to antibiotics may be quite different to mine, and at the moment we can’t predict how much.
  • The microbiomes of different people vary5, there’s no standard ‘set’, so while many groups of bugs share similar biochemical functions and niches, how they respond to antibiotics may differ considerably.
  • There is a concept in ecology which is useful to illustrate this: keystone species6. Removing a keystone species can create a domino effect where other species that relied on it will disappear, allowing only a few remainder species to dominate, or new species to invade.
  • The problem is how, out of so many different species in a microbiome, do we identify a keystone species? Can we predict which ones may survive, and which will perish under a given antibiotic?
  • There’s good reason to believe antibiotics change the microbiome permanently, and consequentially impact our health.
  •  
    "No matter how quietly you listen, nor how closely you stare you'll not hear them, nor see them with the naked eye. They're too small, too quiet. They are our microbiome, the trillions of microorganisms that make their homes inside and out of our bodies. They - we - are an ecosystem, with different bugs filling different niches, some helpful, some quietly parasitic, and others, well, others you do end up knowing about…"
anonymous

Researchers Finally Replicated Reinhart-Rogoff, and There Are Serious Problems. - 0 views

  • Countries with debt-to-GDP ratios above 90 percent have a slightly negative average growth rate, in fact.
  • This has been one of the most cited stats in the public debate during the Great Recession.
  • In a new paper, "Does High Public Debt Consistently Stifle Economic Growth? A Critique of Reinhart and Rogoff," Thomas Herndon, Michael Ash, and Robert Pollin of the University of Massachusetts, Amherst successfully replicate the results.
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  • After trying to replicate the Reinhart-Rogoff results and failing, they reached out to Reinhart and Rogoff and they were willing to share their data spreadhseet. This allowed Herndon et al. to see how how Reinhart and Rogoff's data was constructed.
  • They find that three main issues stand out.
  • First, Reinhart and Rogoff selectively exclude years of high debt and average growth.
  • Second, they use a debatable method to weight the countries.
  • Third, there also appears to be a coding error that excludes high-debt and average-growth countries.
  • All three bias in favor of their result, and without them you don't get their controversial result.
  • Selective Exclusions. Reinhart-Rogoff use 1946-2009 as their period, with the main difference among countries being their starting year.
  • The paper didn't disclose which years they excluded or why.
  • Unconventional Weighting. Reinhart-Rogoff divides country years into debt-to-GDP buckets. They then take the average real growth for each country within the buckets.
  • this weighting significantly reduces the average; if you weight by the number of years you find a higher growth rate above 90 percent.
  • Coding Error. As Herndon-Ash-Pollin puts it: "A coding error in the RR working spreadsheet entirely excludes five countries, Australia, Austria, Belgium, Canada, and Denmark, from the analysis.
  • Being a bit of a doubting Thomas on this coding error, I wouldn't believe unless I touched the digital Excel wound myself. One of the authors was able to show me that, and here it is. You can see the Excel blue-box for formulas missing some data:
  • If this error turns out to be an actual mistake Reinhart-Rogoff made, well, all I can hope is that future historians note that one of the core empirical points providing the intellectual foundation for the global move to austerity in the early 2010s was based on someone accidentally not updating a row formula in Excel.
  • So what do Herndon-Ash-Pollin conclude? They find "the average real GDP growth rate for countries carrying a public debt-to-GDP ratio of over 90 percent is actually 2.2 percent, not -0.1 percent as [Reinhart-Rogoff claim]." [UPDATE: To clarify, they find 2.2 percent if they include all the years, weigh by number of years, and avoid the Excel error.] Going further into the data, they are unable to find a breakpoint where growth falls quickly and significantly.
  • This is also good evidence for why you should release your data online, so it can be properly vetted.
  • But beyond that, looking through the data and how much it can collapse because of this or that assumption, it becomes quite clear that there's no magic number out there. The debt needs to be thought of as a response to the contingent circumstances we find ourselves in, with mass unemployment, a Federal Reserve desperately trying to gain traction at the zero lower bound, and a gap between what we could be producing and what we are. The past guides us, but so far it has failed to provide evidence of an emergency threshold. In fact, it tells us that a larger deficit right now would help us greatly.
  •  
    "In 2010, economists Carmen Reinhart and Kenneth Rogoff released a paper, "Growth in a Time of Debt." Their "main result is that...median growth rates for countries with public debt over 90 percent of GDP are roughly one percent lower than otherwise; average (mean) growth rates are several percent lower." Countries with debt-to-GDP ratios above 90 percent have a slightly negative average growth rate, in fact."
anonymous

Hellfire, Morality and Strategy - 2 views

  • On one side of this dispute are those who regard them simply as another weapon of war whose virtue is the precision with which they strike targets.
  • On the other side are those who argue that in general, unmanned aerial vehicles are used to kill specific individuals, frequently civilians, thus denying the targeted individuals their basic right to some form of legal due process.
  • Let's begin with the weapons systems, the MQ-1 Predator and the MQ-9 Reaper. The media call them drones, but they are actually remotely piloted aircraft. Rather than being in the cockpit, the pilot is at a ground station, receiving flight data and visual images from the aircraft and sending command signals back to it via a satellite data link.
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  • Most airstrikes from these aircraft use Hellfire missiles, which cause less collateral damage.
  • Unlike a manned aircraft, unmanned aerial vehicles can remain in the air for an extended period of time -- an important capability for engaging targets that may only present a very narrow target window. This ability to loiter, and then strike quickly when a target presents itself, is what has made these weapons systems preferable to fixed wing aircraft and cruise missiles.
  • The Argument Against Airstrikes
  • The modern battlefield -- and the ancient as well -- has been marked by anonymity. The enemy was not a distinct individual but an army, and the killing of soldiers in an enemy army did not carry with it any sense of personal culpability. In general, no individual soldier was selected for special attention, and his death was not an act of punishment. He was killed because of his membership in an army and not because of any specific action he might have carried out.
  • This distinguishes unmanned aerial vehicles from most weapons that have been used since the age of explosives began.
  • There are those who object to all war and all killing; we are not addressing those issues here. We are addressing the arguments of those who object to this particular sort of killing. The reasoning is that when you are targeting a particular individual based on his relationships, you are introducing the idea of culpability, and that that culpability makes the decision-maker -- whoever he is -- both judge and executioner, without due process.
  • Again excluding absolute pacifists from this discussion, the objection is that the use of unmanned aerial vehicles is not so much an act of war as an act of judgment and, as such, violates international law that requires due process for a soldier being judged and executed. To put it simply, the critics regard what they call drone strikes as summary executions, not acts of war.
  • The Argument for Airstrikes
  • The counterargument is that the United States is engaged in a unique sort of war.
  • The primary unit is the individual, and the individuals -- particularly the commanders -- isolate themselves and make themselves as difficult to find as possible. Given their political intentions and resources, sparse forces dispersed without regard to national boundaries use their isolation as the equivalent of technological stealth to make them survivable and able to carefully mount military operations against the enemy at unpredictable times and in unpredictable ways.
  • The argument for using strikes from unmanned aerial vehicles is that it is not an attack on an individual any more than an artillery barrage that kills a hundred is an attack on each individual. Rather, the jihadist movement presents a unique case in which the individual jihadist is the military unit.
  • The argument in favor of using unmanned aerial vehicle strikes is, therefore, that the act of killing the individual is a military necessity dictated by the enemy's strategy and that it is carried out with the understanding that both intelligence and precision might fail, no matter how much care is taken.
  • It would seem to me that these strikes do not violate the rules of war and that they require no more legal overview than was given in thousands of bomber raids in World War II.
  • Ignoring the question of whether jihadist operations are in accordance with the rules and customs of war, their failure to carry a "fixed distinctive sign recognizable at a distance" is a violation of both the Hague and Geneva conventions. This means that considerations given to soldiers under the rules of war do not apply to those waging war without insignia.
  • Open insignia is fundamental to the rules of war. It was instituted after the Franco-Prussian war, when French snipers dressed as civilians fired on Germans. It was viewed that the snipers had endangered civilians because it was a soldier's right to defend himself and that since they were dressed as civilians, the French snipers -- not the Germans -- were responsible for the civilian deaths.
  • the onus on ascertaining the nature of the target rests with the United States, but if there is error, the responsibility for that error rests with jihadists for not distinguishing themselves from civilians.
  • There is of course a greater complexity to this: attacking targets in countries that are not in a state of war with the United States and that have not consented to these attacks. For better or worse, the declaration of war has not been in fashion since World War II. But the jihadist movement has complicated this problem substantially.
  • In a method of war where the individual is the prime unit and where lack of identification is a primary defensive method, the conduct of intelligence operations wherever the enemy might be, regardless of borders, follows. So do operations to destroy enemy units -- individuals. If a country harbors such individuals knowingly, it is an enemy. If it is incapable of destroying the enemy units, it forfeits its right to claim sovereignty since part of sovereignty is a responsibility to prevent attacks on other countries.
  • If we simply follow the logic we laid out here, then the critics of unmanned aerial vehicle strikes have a weak case. It is not illegitimate to target individuals in a military force like the jihadist movement, and international law holds them responsible for collateral damage, not the United States.
  • since al Qaeda tried in the past to operate in the United States itself, and its operatives might be in the United States, it logically follows that the United States could use unmanned aerial vehicles domestically as well. Citizenship is likewise no protection from attacks against a force hostile to the United States.
  • There are two points I have been driving toward.
  • The first is that the outrage at targeted killing is not, in my view, justified on moral or legal grounds.
  • The second is that in using these techniques, the United States is on a slippery slope because of the basis on which it has chosen to wage war.
  • The enemy strategy is to draw the United States into an extended conflict that validates its narrative that the United States is permanently at war with Islam. It wants to force the United States to engage in as many countries as possible. From the U.S. point of view, unmanned aerial vehicles are the perfect weapon because they can attack the jihadist command structure without risk to ground forces. From the jihadist point of view as well, unmanned aerial vehicles are the perfect weapon because their efficiency allows the jihadists to lure the United States into other countries and, with sufficient manipulation, can increase the number of innocents who are killed.
  • In this sort of war, the problem of killing innocents is practical. It undermines the strategic effort. The argument that it is illegal is dubious, and to my mind, so is the argument that it is immoral. The argument that it is ineffective in achieving U.S. strategic goals of eliminating the threat of terrorist actions by jihadists is my point.
  • The broader the engagement, the greater the perception of U.S. hostility to Islam, the easier the recruitment until the jihadist forces reach a size that can't be dealt with by isolated airstrikes.
  • In warfare, enemies will try to get you to strike at what they least mind losing. The case against strikes by unmanned aerial vehicles is not that they are ineffective against specific targets but that the targets are not as vital as the United States thinks. The United States believes that the destruction of the leadership is the most efficient way to destroy the threat of the jihadist movement. In fact it only mitigates the threat while new leadership emerges. The strength of the jihadist movement is that it is global, sparse and dispersed. It does not provide a target whose destruction weakens the movement. However, the jihadist movement's weakness derives from its strength: It is limited in what it can do and where.     
  • In the long run, it is not clear that the cost is so little. A military strategy to defeat the jihadists is impossible. At its root, the real struggle against the jihadists is ideological, and that struggle simply cannot be won with Hellfire missiles.
  •  
    "Airstrikes by unmanned aerial vehicles have become a matter of serious dispute lately. The controversy focuses on the United States, which has the biggest fleet of these weapons and which employs them more frequently than any other country. On one side of this dispute are those who regard them simply as another weapon of war whose virtue is the precision with which they strike targets. On the other side are those who argue that in general, unmanned aerial vehicles are used to kill specific individuals, frequently civilians, thus denying the targeted individuals their basic right to some form of legal due process."
  •  
    I'm starting to come around to the objections of expeditionary troops trying to put down the American colonial revolt. There's something to having to look someone in the face when you kill them.
anonymous

Steve Martin's Advice for Building a Career You Love - 0 views

  • In the last five minutes of the interview, Rose asks Martin his advice for aspiring performers. "Nobody ever takes note of [my advice], because it's not the answer they wanted to hear," Martin said. "What they want to hear is ‘Here's how you get an agent, here's how you write a script,' . . . but I always say, ‘Be so good they can't ignore you.' "
  • It took Martin, by his own estimation, ten years for his new act to cohere, but when it did, he became a monster success. It's clear in his telling that there was no real shortcut to his eventual fame, and the compelling life it generated. "[Eventually] you are so experienced [that] there's a confidence that comes out," Martin explained. "I think it's something the audience smells."
  • If you're not focusing on becoming so good they can't ignore you, you're going to be left behind. This clarity is refreshing. It tells you to stop worrying about what your job offers you, and instead worry about what you're offering the world.
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  • As I'll explain below, regardless of how you feel about your job right now, adopting the craftsman mindset can be the foundation on which you build a compelling career.
  • Research shows that the traits that lead people to love their work are general, and can be found in many different career paths. They include things like autonomy, a sense of impact and mastery, creativity, and respect and recognition for your abilities. Once you recognize that these traits have little to do with following a pre-existing passion, and can be cultivated in many different fields, you can safely abandon the myth that there's a single right job waiting out there for you.
  • Basic economic theory tells us that if you want something that's both rare and valuable, you need something rare and valuable to offer in return—this is Supply and Demand 101.
  • They start by painstakingly developing rare and valuable skills—which we can call career capital. They then leverage this capital to gain rare and valuable traits in their career. These traits lead to a feeling of passion about their working life.
  • The reality I'm proposing is less glamorous. It argues that passion takes time and hard work—harder work than most people naturally invest in their jobs. It's also less certain in the sense that you cannot predict in advance the details of the compelling career you're cultivating. But it compensates with clarity.
  •  
    "To simplify things, I'll use the "passion hypothesis" to refer to the popular belief that the way to end up loving your career is to first figure out what you're passionate about, and then pursue it (a strategy often summarized with the pithy phrase, "follow your passion.") The more I studied this hypothesis, the more I noticed its danger. This idea convinces people that there's a magic "right" job waiting for them, and that if they find it, they'll immediately recognize that this is the work they were meant to do. The problem, of course, is when they fail to find this certainty, bad things follow, such as chronic job-hopping and crippling self-doubt."
anonymous

Sovereignty, Supranationality and the Future of EU Integration - 0 views

  • The European Union is an entity like no other in world history. After the end of World War II, the international system was configured around a series of multilateral organizations such as the United Nations, the International Monetary Fund and NATO. But the process of economic and political cooperation that West Germany, France, Italy, the Netherlands, Belgium and Luxembourg began in 1951 is fundamentally different from the rest of the post-war organizations.
  • The project was a direct challenge to the classical idea of ​​the nation-state and generated new forms of government and administration hitherto unknown.
  • Immanuel Kant believed that Europe would only overcome its constant state of war by achieving some form of political unity.
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  • From the Roman Empire to Nazi Germany, all the attempts to unify Europe meant war and conquest. It took World War II to convince the Europeans that the future of the Continent depended on overcoming age-old antagonisms and building a lasting political settlement to boost trade and prevent another war.
  • The central problem to be solved was the historical emnity between France and Germany
  • The French government understood that the only way to achieve lasting and sustainable economic growth in France was by ensuring a stable peace with Germany.
  • The European Economic Community, the institutional heart of the emerging continental unity, had three main objectives.
  • Its immediate goal was to create a customs union, which would eliminate trade restrictions between member states and establish a common external tariff for trade with the rest of the world.
  • It would also seek the consolidation of a common market, to allow the free movement of people, goods, capital and services.
  • Finally, it would seek the progressive coordination of social and fiscal policies among its members.
  • The rationale behind the European Communities was that if countries gave up sovereignty in specific areas, over time a greater amount of national prerogatives would be transferred to the supranational institutions.
  • Throughout the process, unanimity would be replaced by majority voting (so that the interest of the majority would overtake individual interests) and concessions of sovereignty would not be limited to economic issues, but also political and military affairs.
  • In other words, the process of European integration would progressively weaken the nation-state and its strategic interests.
  • Six decades later, many of these goals have been achieved.
  • The Commission, the Parliament and the Court of Justice today have powers that notably exceed those designed in the 1950s. More impressively, the European Union currently has 28 members, 17 of whom share the same currency. In 1945, with Europe in ashes and occupied by foreign powers, it was unimaginable to think that six decades later France and Germany would share the leadership of a continental alliance stretching from Portugal to Finland and Cyprus.
  • However, the remarkable growth of the European project did not bring about the abolishment of the nation-state that many analysts predicted.
  • EU institutions tend to generate their own agendas, which often go against the national strategies of some member states. As a result, the clash between national and supranational interests is often unavoidable.
  • This friction did not begin with the current economic crisis. In 1965, the French government withdrew its representation in the European Commission in protest of a plan that would give more power to Brussels in the management of the Common Agricultural Policy. To resolve the crisis, the Europeans reached an agreement under which a de facto veto power was given to member states on issues that were considered crucial to national interests. This agreement (commonly known as the Luxembourg Compromise) was designed to protect the intergovernmental nature of the European Communities and virtually froze the process of supranational integration in the 1970s and 1980s, until the Single European Act in 1986 introduced new mechanisms for qualified majority voting.
    • anonymous
       
      This paragraph is a good example of something I would never have known about otherwise. I wish I had been shown (much earlie) how history is shaped by the continuity and discontinuity of policies. Among, you know, an infinite soup of other variables. :)
  • On top of the traditional tensions between national governments and supranational institutions, in times of crisis member states also tend to distrust each other.
  • The creation of the euro has further complicated things. Seventeen countries with very different levels of economic development and competitiveness now share a common currency. This has particularly reduced Mediterranean Europe's room to maneuver, because it has deprived those countries of the possibility of applying independent monetary policy to tackle crises.
  • Governments must find a balance between their foreign policy objectives, pressure from the European Union and their desire to be re-elected -- which means decisions that may make sense for the future of the European Union (such as fiscal consolidation efforts) would probably not be made if governments consider them too unpopular among voters.
  • Other institutions, such as constitutional courts, often threaten to block decisions accepted by national parliaments. The recent investigation by the German constitutional court on the validity of the European Stability Mechanism and the decision by the Portuguese constitutional court to block some austerity measures promoted by Brussels and implemented by Lisbon are examples of this situation.
  • The deep unemployment crisis in the eurozone adds yet another complication to this problem. The European elites are still largely pro-European, and most of the voters in the eurozone want to keep the euro. But with the European Union's promise of economic prosperity weakening, its members have begun to rethink their strategies. Fidelity for the European project is not unbreakable. Nor is it strong enough to support an indefinite period of extremely high unemployment.
  • Despite its remarkable evolution, the European Union is still a contract. And contracts could be modified or even canceled if they stop being beneficial for their signatories.
  • Non-eurozone countries in Central and Eastern Europe have also begun to think of a more independent foreign policy. They remain formally aligned with the European Union and NATO, but the pursuit of closer ties with Russia is no longer taboo. And for most of them, joining the eurozone is no longer a priority.
  • Because of the pervasiveness of the nation-state, the future of the European Union will not be in the hands of the EU institutions, but in those of the same actors of 1951: France and Germany. Since the beginning of the economic crisis, Paris and Berlin have reiterated their commitment to the European Union, but as the economic downturn moves to the core of Europe, the differences between them become more obvious.
  • Like most economies in Mediterranean Europe, France's has lost competitiveness since the creation of the euro, and the common currency has led to a constant trade deficit with Germany. France will seek to change its relationship with Germany without breaking it (as Paris is still interested in containing Berlin), but Paris is increasingly aware that the European project should be remodeled.
  • In this context, Paris and Berlin will need to find a balance between their desire to preserve their alliance and the need to protect their national interests.
  • The Germans are interested in preserving their alliance with France and protecting the currency union because it benefits its exports to its neighbors and out of fear of the immeasurable financial consequences of a breakup of the eurozone.
  • Europe's main challenge will be to prevent these frictions from paralyzing the bloc. The European Union will also face the test of mitigating the alienation of its eastern members and closing the gap between eurozone and non-eurozone countries. In the meantime, Brussels and national governments will have to find ways to alleviate the bloc's corrosive unemployment crisis before it leads to dangerous levels of social unrest. In all these challenges, the European Union is running a race against time.
  •  
    "Tensions between the European Commission and France have escalated in recent weeks. After Brussels suggested that Paris should apply structural reforms to reactivate the French economy, French President Francois Hollande said that the Commission cannot dictate policy to France. A few days later, the Commission's president, Jose Manuel Barroso, criticized the French pressure to exclude the audio-visual sector from the negotiations for a free trade agreement between the European Union and United States."
anonymous

Captive Virgins, Polygamy, Sex Slaves: What Marriage Would Look Like if We Actually Fol... - 3 views

  • “Bible-believing” Christians, also called “biblical literalists,” believe the Bible is the literally perfect word of God, essentially dictated by God to the writers. Thanks to the determined work of historical revisionists like David Barton, many of them also believe (very, very wrongly) that America’s Constitution and legal system also were founded on principles and laws drawn from the Bible. 
  • Not all Christians share this view. Biblical literalists are at the opposite end of the theological spectrum from modernist Christians, who see the Bible as the record of our imperfect spiritual ancestors who struggled to understand what is good and what is God and how to live in moral community with each other.
    • anonymous
       
      Reasonably minded Christians everywhere thank the author for pointing this very fucking important fact out.
    • Erik Hanson
       
      "Modernist Christians"? I'd say Modernist theology is a big part of the problem. (This is a semantic quibble.)
  • Even though divorce and teen pregnancy rates are lower in more secular parts of the country, Bible believers see both as problems caused primarily by America’s loss of faith.
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  • Let me tell you a secret about Bible believers that I know because I was one. Most of them don’t read their Bibles. If they did, they would know that the biblical model of sex and marriage has little to do with the one they so loudly defend.
    • Erik Hanson
       
      That's the easy explanation, but not necessarily the right one. I've sat in Bible-study groups of fairly wealthy Christians as they spent an hour convincing themselves that Jesus doesn't really want them to sell their stuff and give the proceeds to the church and the poor, even if there are multiple instances of what I take to be fairly clear language saying that Christians should do precisely that. It's that "Modernist" stuff again-our brains aren't that rational.
    • anonymous
       
      That's a fair point. Whether you read the Bible or not, that lack-of-rationality thing is surely in play. As you implicitly note, though, this is not the fault of religion - it's our damned species.
    • Erik Hanson
       
      Theologically speaking, it's almost as if God didn't set us up to be able to have Godlike understanding of everything. Like we're limited and mortal or something.
  • Stories depicted in the Bible include rape, incest, master-slave sexual relations, captive virgins, and more. Now, just because a story is told in the Bible doesn’t mean it is intended as a model for devout behavior. Other factors have to be considered, like whether God commands or forbids the behavior, if the behavior is punished, and if Jesus subsequently indicates the rules have changed, come the New Testament. 
  • Through this lens, you find that the God of the Bible still endorses polygamy and sexual slavery and coerced marriage of young virgins along with monogamy. In fact, he endorses all three to the point of providing detailed regulations.
  • Polygamy is a norm in the Old Testament and accepted in the New Testament.
  • Concubines are sex slaves, and the Bible gives instructions on acquisition of several types of sex slaves, although the line between biblical marriage and sexual slavery is blurry.
  • In the book of Numbers (31:18) God’s servant commands the Israelites to kill all of the used Midianite women who have been captured in war, and all of the boy children, but to keep all of the virgin girls for themselves.
  • These stories might be irrelevant to the question of biblical marriage were it not that Bible believers keep telling us that God punishes people when he dislikes their sexual behavior.
  • The nuclear family model so prized by America’s fundamentalist Christians emerged from the interplay between Christianity and European cultures including the monogamous tradition of the Roman Empire.
  • Bible believers, even those who think themselves “nondenominational,” almost all follow some theological tradition that tells them which parts of the Bible to follow and how.
  • But many who call themselves Bible believers are simply, congenitally conservative – meaning change-resistant. It is not the Bible they worship so much as the status quo, which they justify by invoking ancient texts. Gay marriage will come, as will reproductive rights, and these Bible believers will adapt to the change as they have others: reluctantly, slowly and with angry protests, but in the end accepting it, and perhaps even insisting that it was God’s will all along.  
  •  
    There's no way to understand politics anywhere without understanding religion, but to an outsider American Christianity -- and so American politics -- can seem almost incomprehensible. Over the last 2,000 years, Christians have quarreled themselves into 30,000 different denominations. On top of that, American Christianity, like American culture more broadly, tends to flout hierarchy and authority, which means that a sizeable number of American Christians consider themselves "nondenominational."
anonymous

The Spark File - 2 views

shared by anonymous on 11 Sep 12 - Cached
  • There are a number of ways that your memory can get in the way of a good writing session when you're in the middle of a project, mostly because you've remembered too much. But when you're just starting out on a project, when you're in that early stage where you're still trying to figure out what you want to write in the first place—at this stage, it's the frailty of memory that causes problems.
  • This is because most good ideas (whether they're ideas for narrative structure, a particular twist in the argument, or a broader topic) come into our minds as hunches: small fragmentsof a larger idea, hints and intimations.
  • The problem with hunches is that it's incredibly easy to forget them, precisely because they're not fully-baked ideas.
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  • for the past eight years or so I've been maintaining a single document where I keep all my hunches: ideas for articles, speeches, software features, startups, ways of framing a chapter I know I'm going to write, even whole books.
  • There's no organizing principle to it, no taxonomy--just a chronological list of semi-random ideas that I've managed to capture before I forgot them. I call it the spark file.
  • Now, the spark file itself is not all that unusual: that's why Moleskins or Evernote are so useful to so many people. But the key habit that I've tried to cultivate is this: every three or four months, I go back and re-read the entire spark file.
  • But what happens when I re-read the document that I end up seeing new connections that hadn't occurredto me the first (or fifth) time around: the idea I had in 2008 that made almost no sense in 2008, but that turns out to be incredibly useful in 2012, because something has changed in the external world, or because some other idea has supplied the missing piece that turns the hunch into something actionable.
  • But this kind of inventory doesn't quite convey the most interesting part of the experience, which is the feeling of reading through your own words describing new ideas as they are occurring to you for the first time. In a funny way, it feels a bit like you are brainstorming with past versions of yourself.
  • The key is to capture as many hunches as possible, and to spend as little time as possible organizing or filtering or prioritizing them. (Keeping a single,chronological file is central to the process, because it forces you to scroll through the whole list each time you want to add something new.) Just get it all down as it comes to you, and make regular visits back to re-acquaint yourself with all your past explorations. You'll be shocked how many useful hunches you've forgotten.
  •  
    "Looking back at all the tools and techniques that I've developed over the years as a writer, it occurs to me that most of them are, in one way or another, grappling with two critical mental forces: the power (and weakness) of human memory, and the sometimes overwhelming drive to procrastinate."
anonymous

Tom Bissell on The Elder Scrolls V: Skyrim - 1 views

  •  
    And you start walking. Soon enough, you're discovering cities, towns, forts, and caves, all of which are filled with weapons you can wield, gold you can spend, spells you can cast, and books you can - theoretically, at least - read. This isn't even to mention all the people you're meeting, many of whom have problems they need assistance with. A troll has been stealing cabbage and they need you to stop it. Bandits have set up shop in a nearby cave and they need you to go clean them out. The world is about to end and they need you to prevent that from happening. That all of these tasks wind up seeming equally pressing is either the central failure of Oblivion or its great and cunning secret.
anonymous

Freakonomics: What Went Wrong? - 0 views

  • Oster’s work stirred debate for a few years in the epidemiological literature, but eventually she admitted that the subject-matter experts had been right all along. One of Das Gupta’s many convincing counterpoints was a graph showing that in Taiwan, the ratio of boys to girls was near the natural rate for first and second babies (106:100) but not for third babies (112:100); this pattern held up with or without hepatitis B. In a follow-up blog post, Levitt applauded Oster for bravery in admitting her mistake, but he never credited Das Gupta for her superior work. Our point is not that Das Gupta had to be right and Oster wrong, but that Levitt and Dubner, in their celebration of economics and economists, suspended their critical thinking.
  • In SuperFreakonomics, Levitt and Dubner use a back-of-the-envelope calculation to make the contrarian claim that driving drunk is safer than walking drunk, an oversimplified argument that was picked apart by bloggers. The problem with this argument, and others like it, lies in the assumption that the driver and the walker are the same type of person, making the same kinds of choices, except for their choice of transportation.
  • Such all-else-equal thinking is a common statistical fallacy. In fact, driver and walker are likely to differ in many ways other than their mode of travel. What seem like natural calculations are stymied by the impracticality, in real life, of changing one variable while leaving all other variables constant.
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  • This unavoidable tradeoff between false positive and false negative errors is a well-known property of all statistical-prediction applications. Circling back to check all the factors involved in the problem might have helped the authors avoid this mistake.
  • How could an experienced journalist and a widely respected researcher slip up in so many ways? Some possible answers to this question offer insights for the would-be pop-statistics writer.
  • Leave friendship at the door: We attribute many of these errors to the structure of the authors’ collaboration, which, from what we can tell, relies on an informal social network that has many potential failure points.
  • Don’t sell yourself short: Perhaps Levitt’s admirable modesty—he has repeatedly attributed his success to luck and hard work rather than genius—has led him astray. If he feels he is surrounded by economists more exceptional and brilliant than he is, he may let their assertions stand without challenge.
  • Maintain checks and balances: A solid collaboration requires each side to check and balance the other side. Although there’s no way we can be sure, perhaps, in some of the cases described above, there was a breakdown in the division of labor when it came to investigating technical points.
  • Take your time: Success comes at a cost: The constraints of producing continuous content for a blog or website and meeting publisher’s deadlines may have adverse effects on accuracy.
  • Be clear about where you’re coming from: Levitt’s publishers, along with Dubner, characterize him as a “rogue economist.”
  • Use latitude responsibly: When a statistician criticizes a claim on technical grounds, he or she is declaring not that the original finding is wrong but that it has not been convincingly proven. Researchers—even economists endorsed by Steven Levitt—can make mistakes. It may be okay to overlook the occasional mistake in the pursuit of the larger goal of understanding the world. But once one accepts this lower standard—science as plausible stories or data-supported reasoning, rather than the more carefully tested demonstrations that are characteristic of Levitt’s peer-reviewed research articles—one really has to take extra care, consider all sides of an issue, and look out for false positive results.
  •  
    In our analysis of the Freakonomics approach, we encountered a range of avoidable mistakes, from back-of-the-envelope analyses gone wrong to unexamined assumptions to an uncritical reliance on the work of Levitt's friends and colleagues. This turns accessibility on its head: Readers must work to discern which conclusions are fully quantitative, which are somewhat data driven and which are purely speculative.
anonymous

Everything You Know About Fitness is a Lie - 0 views

shared by anonymous on 15 Dec 11 - Cached
  • Weight machines, on the other hand, are far more insidious because they appear to be a huge technological advance over free weights. But quite the opposite is true: Weight machines train individual muscles in isolation, while the rest of you sits completely inert. This works okay for physical therapy and injury rehab, and it’s passable for bodybuilding, but every serious strength-and-conditioning coach in America will tell you that muscle-isolation machines don’t create real-world strength for life and sport.
  • Most gyms do include a few token free weights, but think about where you’ll find them: around the edges of the room, like fresh fruits and vegetables in a supermarket that gives all the prime middle-of-the-store shelf space to Frosted Flakes and frozen cheesecake. Truly indispensable gear — like the good old-fashioned adjustable barbell rack, the sine qua non of any remotely serious gym — has, by contrast, become a downright rarity. As for niche but no less important equipment like an Olympic lifting platform, forget about it: The lawyers would never let it through the door.
  • Here’s the problem: If you’re in the fitness-equipment business, free weights are a loser.
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  • Commercial health clubs need about 10 times as many members as their facilities can handle, so designing them for athletes, or even aspiring athletes, makes no sense.
  • Next up, shake hands with that nice, buff guy in the “trainer” shirt, and confess that you really don’t have a clue how to use a gym but that you’re into outdoor sports and you want to stay fit enough to have fun on weekends. He’ll nod a lot and pretend to take notes. Then he’ll measure your body fat with some high-tech-looking device and ask you lots of questions, ultimately convincing you to hire him twice a week.
    • anonymous
       
      This is known as the *Chiropractor* approach.
  • these days, it’s all about “functional fitness,” a complex integration of balance and stability and strength.
  • My conversion moment came in a garage-like industrial space next to an ATV rental yard in Jackson Hole, Wyoming. I was lying on a concrete floor, near puking, having just humiliated myself on the king of all strength exercises, the old-school back squat. “The best thing I can do for an athlete,” coach Rob Shaul said to me as I struggled to get up, “is to make him strong. Strength is king, and you’re fucking little-girl weak.”
  • I jumped on a plane, slept in a motel, gulped a crappy coffee, drove down a lonely highway, and presented myself. Beneath the Mountain Athlete banners, I saw nothing but dumbbells, barbells, iron weight plates, braided climbing ropes hanging off the ceiling, pull-up bars, and dip bars. No mirrors, no TVs, no music, no elliptical trainers, no weight machines, and, to my annoyance, absolutely no rubber bands or stability balls.
  • He ordered us over to the barbell racks, telling us to work our way up to the heaviest squat we could do once. I realized that I had never done this particular test in my life. In fact, the more I thought about it, the more certain I became that I’d never even done plain old squats. Wasn’t it far better to squat on a stability ball and get all that additional balance and core work?
  • The rest of the session — more barbell moves, along with push-ups, pull-ups, and dips — revealed more of the same. I was, in a word, weak. Not even middle-aged-lady weak — little-girl weak.
  • True sport-specific training, for literally everybody except elite athletes, isn’t sport-specific at all. It’s about getting strong, durable, and relentless in simple, old-school ways that a man can train, test, and measure. Nobody does crunches training this way, nobody watches television from the stationary bike, and 60-year-old women dead-lift 200 pounds and more.
  • And now I knew this wasn’t about a gym or about gym equipment; it was about an ethos, an understanding that nothing on Earth beats the fundamentals, a commitment to regular, measurable improvement in everything that a gym trainer won’t teach, for fear you’ll walk away bored: push-ups, pull-ups, bench presses, squats, dead lifts, and even such military-seeming tests as just how fast you can run a single mile.
  • TRUTH 3: ONCE YOU “GET IT,” YOU’LL LOVE IT.
  • Shaul’s guys out in Wyoming get massively strong and powerful on precisely three gym sessions a week, each lasting an hour and no more. Louie Simmons, the single biggest name in gorilla-style competitive power lifting, will tell you that 45 minutes is the max length of any smart training session.
  • Strength means how much you can lift once
  • Power is a more slippery term that means “speed strength,” or how much you can lift very, very quickly
  • Muscle mass can be a liability in sports like climbing, where it’s all about strength-to-weight ratio, but mass helps enormously with games like rugby and football, and it can support strength and power
  • Muscular endurance means how many times you can lift a given weight in a row without stopping
  • Down the road, if you’re like me, you’ll want to train multiple aptitudes at once: strength, power, and endurance.
  • Every serious strength-and-conditioning coach sticks to the basic barbell movements, because our bodies don’t operate as single muscles — they operate as a whole.
  • First: The human body adapts to stress. Throw us in ice-cold water every day and we’ll sprout subcutaneous fat for insulation; expose us to the desert sun and our skin will darken. What this means for getting in shape is that each week, you have to stress your body a little more than last time — lift a little heavier, run a little harder. Muscles weaken with exhaustion after a workout, but then they recover and typically, a few days later, go into what’s known as “supercompensation,” a fancy word that just means bouncing back a little stronger than before.
  • Finally, keep it simple; understand that variety is overrated. Variety does stave off boredom — it’s fun to mix in new exercises all the time — but a guy who hasn’t trained in a long time, if ever, will get stronger faster on the simplest program of squats, dead lifts, and presses, three times a week.
  • To get it just right, keep meticulous records, writing down every rep and every lift so your targets for each workout are easy to spot and your gains are easy to measure.
  • This simple formula is 90 percent of what you need to know, and you now officially know more than the buff 25-year-old doing your gym-membership orientation.
  • “Somewhere inside every man’s body,” Brown told me, lying in a La-Z-Boy, “there’s a weak link, a weak muscle waiting to fail. My job is to find that muscle and make it strong.”
  • two problems: First, if you have powerful prime movers from doing muscle-isolation machines at the gym but weak stabilizers because you rarely get to play a sport, you can’t access all your strength when you, say, bang off a mogul on a ski hill
  • Second, and worse still, the strength of the prime movers can shred your unstable joints.
  • He returned to the matters at hand, telling me that my weak knees and shoulder, my tight neck and spastic lumbar, were absolutely typical of a middle-aged recreational athlete with a desk job who spends all day slumped over and slack and then goes out and plays hard. Ignore this stuff, he said, and keep training, and I was guaranteed to get injuries that could set me back for a year. The good news, Brown told me, was that joint stability in each area could be traced to a remarkably small number of tiny stabilizer muscles. And while you could spend a fortune on physical therapists, trying to get them to tell you the same thing, you could also just start exercising those stabilizers. “I’m not reinventing the wheel here,” Brown told me. “This is just better-mousetrap kind of stuff.”
  • One book in particular, Mark Rippetoe’s Starting Strength: Basic Barbell Training, inspired me to start with the very first of the Fundamental Four: strength. I liked the clarity of the word, and I liked the idea of keeping life simple, learning one aptitude at a time. Many pros will tell you that strength is the place to start, because once you’ve built pure strength, you’ll have no trouble adding power, size, and endurance. I decided to just follow Rippetoe’s bare-bones old-school program.
  • Before Starting Strength, I didn’t even know what a dead lift was, but my dead lift went from 135 pounds to 335. My bench press went well over my body weight. At age 42 — 6-foot-2 and gangly and 20 years into complaining about a bad back and bum knees, and right when any doctor or physical therapist would have told me it was time to embrace the low-impact elliptical — my back squat hit 275, going below parallel. My thighs got so big I couldn’t fit into most of my jeans, and I had to start shopping for new T-shirts.
  • But there’s an even better reason to build pure strength. I’ve come to believe that men don’t go to gyms just to avoid heart disease or support our weekend sports. It’s worth getting strong because we go to gyms in large part to maintain a little goddamned self-respect, and to blow off steam, and to insist, against all odds, that we do remain fiercely vital physical beings. And trust me, there’s nothing like watching your dead lift skyrocket to make you feel vital. It’s the happy exhaustion, the sense of hard work well done, with a clear purpose; it’s the rush of seeing your body change, fat turning into lean mass.
  •  
    Gym machines are boring, CrossFit is sadistic, and dieting sucks. Luckily, none of them is essential to being truly fit. Through years of trial and error - and humiliation at the hands of some of the world's top trainers - the author discovered the secrets to real health.
anonymous

Biggly Body Index - 3 views

  •  
    This page offers an online BMI calculator but much more than that, it's a BBI calculator! BMI stands for Body Mass Index and it is an official medical definition but it suffers from a major problem, which is that it is pretty useless for bodybuilders. A lean ripped bodybuilder is likely to score highly on the BMI, with a false fat or "obese" classification. In contrast to the BMI the Biggly Body Index or BBI takes a variety of different aspects of your physique and then calculates an overall score, up to a maximum of 100%. To be 100% Biggly is not easy. It is more than simply "not fat" and you'll score low if you're too skinny too, because it is based around the ideal human physique, such as the ideal hip to waist ratio etc.
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  •  
    I like this a lot, in large part because an 87% BBI makes me feel a lot better than a 25 BMI does.
  •  
    Agreed. If I have learned anything from Wii Fit, it's that BMI is a big fat lie. Great slogan, no?
  •  
    It makes Mii fat. :(
anonymous

Elections Don't Matter, Institutions Do - 0 views

  • Well, of course that's true, they're only states, not countries, you might say. But the fact that my observation is a dull commonplace doesn't make it any less amazing.
  • as the late Harvard Professor Samuel P. Huntington once remarked, the genius of the American system lies less in its democracy per se than in its institutions. The federal and state system featuring 50 separate identities and bureaucracies, each with definitive land borders -- that nevertheless do not conflict with each other -- is unique in political history.
  • In fact, Huntington's observation can be expanded further: The genius of Western civilization in general is that of institutions. Sure, democracy is a basis for this; but democracy is, nevertheless, a separate factor. For enlightened dictatorships in Asia have built robust, meritocratic institutions whereas weak democracies in Africa have not.
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  • We take our running water and dependable electric current for granted, but those are amenities missing from many countries and regions because of the lack of competent institutions to manage such infrastructure.
  • Having a friend or a relative working in the IRS is not going to save you from paying taxes, but such a situation is a rarity elsewhere.
    • anonymous
       
      Not so much with law enforcement, though, where having a friend in the system is invaluable.
  • Of course, Americans may complain about poor rail service and deteriorating infrastructure and bureaucracies, especially in inner cities, but it is important to realize that we are, nevertheless, complaining on the basis of a very high standard relative to much of the developing world.
  • With all of their problems and challenges, the Baltic states, Poland, the Czech Republic, Slovakia and Hungary have not fared badly and in some cases have been rousing success stories.
  • The Balkans have been less fortunate, with bad government and unimpressive growth the fare in Romania since 1989, semi-chaos rearing its head in Albania and Bulgaria, and inter-ethnic war destroying the Yugoslav federation in the 1990s.
  • Russia, too, fits into this category. Its system of oligarchs is a telltale sign of weak institutions, since corruption merely indicates an alternative pathway to getting things done when laws and the state bureaucracies are inadequately developed.
  • The so-called Arab Spring failed because the Arab world was not like Central and Eastern Europe. It had low literacy, especially among women. It had little or no tradition of a modern bourgeois, despite commercial classes in some cities, and so no usable institutions to fall back upon once dictatorships crumbled.
  • Turkey and Iran, as real states with more successful urbanization and higher literacy rates, are in an intermediate category between southern Europe and the Arab world.
  • Obviously, even within the Arab world there are distinctions. Egyptian state institutions are a reality to a degree that those in Syria and Iraq are not. Egypt is governable, therefore, if momentarily by autocratic means, whereas Syria and Iraq seem not to be.
  • In many African countries, when taking a road out of the capital, very soon the state itself vanishes. The road becomes a vague dirt track, and the domains of tribes and warlords take over. This is a world where, because literacy and middle classes are minimal (albeit growing), institutions still barely exist.
  • Indeed, people lie to themselves and then lie to journalists and ambassadors. So don't listen to what people (especially elites) say; watch how they behave. Do they pay taxes? Where do they stash their money? Do they wait in line to get drivers' permits, and so forth? It is behavior, not rhetoric, that indicates the existence of institutions, or lack thereof.
  • Elections are easy to hold and indicate less than journalists and political scientists think. An election is a 24- or 48-hour affair, organized often with the help of foreign observers. But a well-oiled ministry must function 365 days a year.
  • Because institutions develop slowly and organically, even under the best of circumstances, their growth eludes journalists who are interested in dramatic events. Thus, media stories often provide a poor indication of the prospects of a particular country. The lesson for businesspeople and intelligence forecasters is: Track institutions, not personalities.
  •  
    "Many years ago, I visited Four Corners in the American Southwest. This is a small stone monument on a polished metal platform where four states meet. You can walk around the monument in the space of a few seconds and stand in four states: Arizona, New Mexico, Colorado and Utah. People lined up to do this and have their pictures taken by excited relatives. To walk around the monument is indeed a thrill, because each of these four states has a richly developed tradition and identity that gives these borders real meaning. And yet no passports or customs police are required to go from one state to the other."
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