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anonymous

China's Inevitable Changes - 0 views

  • China's current economic model, and by extension its political and social model, is reaching its limits just as it had prior to Deng's administration.
  • It is worth recalling just how extraordinary Deng's 1978 meeting was. Mao Zedong had died only two years earlier, taking with him what little remained of the old pillars of Communist Party legitimacy. China was a mess, ravaged by years of economic mismanagement and uncontrolled population growth and only beginning to recover from the trauma of the Cultural Revolution.
  • Had the People's Republic fallen in 1978 or shortly thereafter, few would have been truly surprised. Of course, in those tense early post-Mao years hardly anyone could foresee just how rapid China's transformation would be.
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  • Nonetheless, battling enormous institutional constraints, Deng and his colleagues quickly set up new pillars of social, political and economic stability that guided China through the fall of the Soviet Union and into the 21st century.
  • Jiang, emerging as a post-Tiananmen Square leader, was faced with a situation where the Party was rapidly losing its legitimacy and where state-owned enterprises were encumbering China's economic opening and reform.
  • by the time he took on the additional role of president in 1993, the decline of the Japanese economy and the boom in the United States and the rest of Asia left an opening for China's economy to resurge.
  • When Hu succeeded Jiang in 2002-2003, China's economic growth was seemingly unstoppable, perhaps even gaining steam from the Asian economic crisis.
  • As Xi prepares his 10-year plan, China has reached the end of the economic supercycle set in motion by Deng. Public criticism of officials and thus of the Party is rampant, and China's military appears much more capable than it actually is, putting China is a potentially dangerous situation.
  • Once again the United States is looking at China as a power perhaps to contain or at least constrain. China's neighbors seem eager for Washington's assistance to counterbalance Beijing's influence, and long-dormant Japan is awakening once again.
  • Xi may not have to rebuild a fractured Party or state as Deng did, but in some ways he faces the same fundamental challenge: redirecting and redefining China.
  • Deng emerged as China's paramount leader out of the struggles and chaos of the Gang of Four era and the Cultural Revolution. He redefined what China was and where China was going, not out of a desire to try something different or an infatuation with "Western" economic models but out of a fundamental need to change course.
  • Reform, with "Chinese characteristics," is not about Westernizing the Chinese model. Rather, it is about reshaping the relationship between the Party, the economy and the people in a way that will maintain the centrality of the Party.
  • while this will likely entail selectively scaling back the Party's power in certain areas, it does not mean the overall reduction of Party power.
  • The consolidation of Party and political leadership was made clear in the formula. It is matched by the general secretary and president also holding the dual roles of chairman on the two parallel Central Military Commissions, one under the Party and the other under the state.
  • Jiang's accession to the presidency formalized Party-government leadership, but consensus leadership constrained his power. Jiang may have technically held all the key posts of power, but other power brokers in the Politburo could counterbalance him.
  • The system ensured that the paramount leader remained constrained.
  • Ensuring the right web of connections often became more important than fulfilling the responsibilities of the Party or the state.
  • The intertwining threads were just too complex. Rapid policy swings were impossible and factional battles that threatened the fabric of the state were effectively eliminated, but the cost was a decision-making process that was increasingly cumbersome and timid.
  • This worked well during China's boom.
  • Though China was corrupt, beset with a cumbersome regulatory environment and prone to violations of intellectual property rights, it was fairly predictable overall, unlike so many other developing economies.
  • But when the foundation of China's economy began to shake after 2008, when China's very success drove up wages and prices as its biggest consumers faced serious economic problems of their own, China's consensus leadership proved unequal to the task.
  • During China's rise, Beijing needed only minor adjustments to maintain stability and growth. But now that the country is in a far different set of circumstances, Beijing needs a major course correction. The problem is that consensus rarely allows for the often radical but necessary response. And for good reason: The success of radical change is not guaranteed. In fact, history suggests otherwise, as it did notably with the case of Mikhail Gorbachev and the Soviet Union.
  • To overcome the limitations of consensus leadership, Xi apparently is trying to strengthen the role of president.
  • He wants to redefine the presidency so that it is not merely the concomitant title for the Party leader but also a post with a real leadership role, similar to the presidencies of other major countries.
  • This is a way to compromise somewhere between consensus and strongman.
  • The first target is the bloated bureaucracy.
  • This should add efficiency to the system (its stated goal), but it may also confer greater central oversight and control by cutting through the webs of vested interests that have taken hold in many of China's most powerful institutions.
  • The reforms slated for the economic sector are similar.
  • They will introduce more market and competitive mechanisms while giving Beijing greater control over the overall structure.
  • Consolidation, efficiency, transparency, reform and restructuring are all words that possess dual meanings -- one regarding more efficient and more flexible systems, the other regarding systems that the center is better able to direct.
  • to create a more nimble and adaptive government, Xi is seeking to harness the people in a slight reversal, using his role as president to rebuild the legitimacy of the Party
  • But China is at a turning point, and without nimble leadership, a system as large and complex as China can move very rapidly down an unpredictable and uncontrollable path.
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    "The Central Committee of the Communist Party of China will convene its Third Plenum meeting Nov. 9. During the three-day session, President Xi Jinping's administration will outline core reforms to guide its policymaking for the next decade. The Chinese government would have the world believe that Xi's will be the most momentous Third Plenary Session since December 1978, when former supreme leader Deng Xiaoping first put China on the path of economic reform and opening."
anonymous

The Strategic Implications of Immigration Reform - 0 views

  • It would make it possible for illegal immigrants currently in the country to seek legal residency and eventually citizenship. Finally, and perhaps most important, the bill would shift the composition of the inflow of legal immigrants, increasing quotas for highly skilled individuals and constraining the number of visas available to people whose family members are U.S. citizens. 
  • The history of U.S. immigration policy is necessarily long and controversial. Not only is the United States the biggest economy in the world, it is also the largest recipient of immigrants.
  • Immigration law has been used to control the legal entry of people based on a wide range of factors.
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  • These include placing quotas on nationalities and forbidding the entry of polygamists and political extremists. At the same time, U.S. immigration law has been used to encourage the entry of people with specific skill sets.
  • In 1942 the United States negotiated an agreement with Mexico during an agricultural labor shortage. This agreement, known as the Bracero program, allowed millions of Mexican workers to enter the United States between the time the program was implemented and when it ended in 1964.
  • The program opened the door for significant Mexican migration based on family reunification. What appears to be a more contemporary version of that program -- a temporary worker permit specifically designed to integrate migrant agricultural workers -- was included in the bill introduced Wednesday.
  • Though each new wave of immigration brings with it political and social controversy, the United States' ability to integrate new populations gives it a distinct advantage over many other developed countries.
  • In the first place, Latin American immigrant populations tend to have higher fertility rates than the national average. This allows the United States to maintain a population large enough to drive the world’s largest economy -- in stark comparison with Europe, which is set to experience a notable aging and shrinking of its population.
  • Many students from around the world come to study in the United States, but legal restrictions prevent them from staying and working in the country. The proposed system appears designed to help keep more highly educated foreigners in the United States, a country that depends on technological innovation to create high-skilled, high-value jobs.
  • The generation and protection of intellectual property is a strategic national objective amid rising international competition, and if the proposed law successfully increases high-skilled labor immigration, it will contribute significantly to U.S. competitiveness
  • The Mexican government has long made it a priority to find a way to normalize immigrant status. It also has an interest in encouraging population flows that generate billions of dollars worth of remittances annually to Mexico.
  • The fact that immigration reform is attached to the new border security initiative will sweeten the deal for Mexico during negotiations with the United States.
  • For the United States, the big question now is about global competitiveness, and any reform to immigration will seek to address that question.
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    "A bipartisan group of eight leading U.S. senators on Wednesday officially filed the most comprehensive immigration reform bill since 1990, opening the door for the United States to address an issue that will help to shape the country's economic and demographic future. The bill links the issue of border security with that of immigration and will require the U.S. Department of Homeland Security to significantly ramp up its monitoring of the U.S. border over the next 10 years."
anonymous

The Paradox of America's Electoral Reform - 0 views

  • This election process matters to the world for two reasons.
  • First, the world's only global power will be increasingly self-absorbed
  • The United States sees itself as the City on the Hill, an example to the world. But along with any redemptive sensibility comes its counterpart: the apocalyptic.
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  • Likely an archaic institution, the Electoral College still represents the founders' fear of the passions of the people — both the intensity of some, and the indifference of others.
  • They had two visions: that representatives would make the law, and that these representatives would not have politics as a profession.
  • The founders saw civil society — business, farms, churches and so on — as ultimately more important than the state, and they saw excessive political passion as misplaced.
  • First, it took away from the private pursuits they so valued, and it tended to make political life more important than it should be.
  • Second, they feared that ordinary men (women were excluded) might be elected as representatives at various levels.
  • They tried to shape representative democracy with standards they considered prudent — paralleling the values of their own social class, where private pursuits predominated and public affairs were a burdensome duty.
  • Of course it was the founders who created political parties soon after the founding. The property requirements dissolved fairly quickly, the idea that state houses would elect senators went away, and the ideological passions and love of scandal emerged. 
  • Political parties were organized state by state, and within state by counties and cities. These parties emerged with two roles.
  • The first was to generate and offer potential leaders for election at all levels.
  • The second was to serve as a means of mediation between the public — for multiple classes, from the wealthy to the poor — and the state.
  • The party bosses did not have visions of redemption or apocalypse. They were what the founders didn't want: professional politicians, not necessarily holding office themselves but overseeing the selection of those who would.
  • This was a system made for corruption, of course, and it violated the founders' vision, but it also fulfilled that vision in a way. The party bosses' power resided in building coalitions that they could serve.
  • The system was corrupt, but it produced leaders like Abraham Lincoln, Theodore Roosevelt, Woodrow Wilson, Franklin Roosevelt, Harry Truman and Dwight Eisenhower, as well as some less illustrious people.
  • Starting in 1972, following Richard Nixon's presidency, the United States shifted away from a system of political bosses. This was achieved by broadly expanding primaries at all levels. Rather than bosses selecting candidates and controlling them, direct democratic elections were used for candidate selection. Since the bosses didn't select candidates, the candidates were beholden to the voters rather than the bosses. Each election year, the voters would select the candidates and then select the officeholder. Over time, the power of the political machine was broken and replaced by a series of elections. The founders did not want this level of democracy, but neither did they explicitly want the party boss.
  • This change had two unanticipated consequences.
  • The first was that the importance of money in the political process surged.
  • Corruption moved from favors for bosses to special treatment of fundraisers, but it was still there.
  • Reformers tried to limit the amount of money that could be contributed, but they ignored two facts.
  • First, a primary system for the presidency is fiendishly expensive simply because delivering the message to the public in 50 states costs a fortune. Second, given the stakes, the desire to influence government is difficult to curb.
  • The second unintended consequence was that it institutionalized political polarization.
  • The founders designed politics to be less important than private life, and in the competition on Election Tuesday, private life tends to win, particularly in off-year elections and primaries.
  • in the primaries, only two types of candidates win. One is the extremely well funded — and the passion of the wings make funding for them even more important. The other is the ideologically committed.
  • All of this applies equally to elections to the House and Senate. It has been said that there has never been less bipartisanship than there is now. I don't know if that is true, but it is certainly the case that the penalties for collaboration with the other party, or for moving to the center, are extremely high.
  • This is not meant to romanticize the bosses. We are, on the whole, better off without them, and we can't resurrect them. I am trying to explain why our elections have become so long, why they cost so much money, and why the wings of the parties get to define agendas and legislative and executive behavior.
  • Geopolitics, as Stratfor uses the concept, argues that the wishes and idiosyncrasies of individual leaders make little difference in the long run. This is because leaders are constrained by global realities. It is also because internal political processes define what must be done to take and hold power. Those internal political processes have their own origins in impersonal forces.
  • There has been a long struggle between the founders' vision of how politics should work and the reality of the process.
  • The American Republic was invented and it is continually being reinvented on the same basic theme. Each reform creates a new form of corruption and a new challenge for governance. In the end, everyone is trapped by reality, but it is taking longer and longer to enter that trap.
  • The political parties emerged against the founders' intentions, because political organization beyond the elite followed from the logic of the government. The rise of political bosses followed from the system, and simultaneously stabilized and corrupted it. The post-Watergate reforms changed the nature of the corruption but also changed the texture of political life. The latter is the issue with which the United States is now struggling.
  • The problem endemic in American culture is the will to reform. It is both the virtue and vice of the U.S. government. It has geopolitical consequences.
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    "We are now in the early phases of selecting the president of the United States. Vast amounts of money are being raised, plans are being laid, opposition research is underway and the first significant scandal has broken with the discovery that Hillary Clinton used a non-government email account for government business. Ahead of us is an extended series of primaries, followed by an election and perhaps a dispute over some aspect of the election. In the United States, the presidential election process takes about two years, particularly when the sitting president cannot run for re-election."
anonymous

The End of Consensus Politics in China - 0 views

  • What is the fundamental purpose of Xi's anti-corruption campaign? An attempt to answer this question will not tell us China's political future, but it will tell us something about Xi's strategy -- not only for consolidating his personal influence within the Party, government and military apparatuses, but also and more important, for managing the immense social, economic, political and international pressures that are likely to come to a head in China during his tenure.
  • The announcement July 29 of a formal investigation into retired Politburo Standing Committee member Zhou Yongkang marked something of an end to the first major phase of Xi's anti-corruption campaign.
  • Zhou was known to sit at the apex of at least these three power bases, and his influence likely extended deep into many more, making him not only a formidable power broker but also, at least in the case of his oil industry ties, a major potential obstacle to reform.
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  • Now begins another phase. There are indications that it will center on the military. There are other signs that it will target Shanghai, the primary power base of Jiang Zemin and the locus of financial sector reform in China.
  • the formation of a unified National Security Council chaired by Xi himself and his apparent wresting of the reins of economic and social reform from Premier Li Keqiang, suggest that some other and deeper shift is underway
  • Stratfor believes this shift involves nothing less than an attempt to rework not only the way the Communist Party operates but also the foundations of its political legitimacy.
  • China is in the midst of an economic transformation that is in many ways unprecedented. The core of this transformation is the shift from a growth model heavily reliant on low-cost, low value-added exports and state-led investment into construction to one grounded in a much greater dependence on high value-added industries, services and above all, domestic consumption.
  • China is not the first country to attempt this. Others, including the United States, achieved it long ago. But China has unique constraints: its size, its political system and imperatives, and its profound regional geographic and social and economic imbalances. These constraints are exacerbated by a final and perhaps greatest limit: time
  • China is attempting to make this transition, one which took smaller and more geographically, socially and politically cohesive countries many decades to achieve, in less than 20 years.
  • For the past six years, the Chinese government has kept the economy on life support in the form of massively expanded credit creation, government-directed investment into urban and transport infrastructure development and, most important, real estate construction. In the process, local governments, banks and businesses across China have amassed extraordinary levels of debt. Outstanding credit in China is now equivalent to 251 percent of the country's gross domestic product, up from 147 percent in 2008. Local governments alone owe more than $3 trillion. It is unknown -- deliberately so, most likely -- what portion of outstanding debts are nonperforming, but it is likely far higher than the official rate of 1 percent. 
  • Despite claims that China's investment drive was and is irresponsible -- and certainly there are myriad anecdotal cases of gross misallocation of capital -- it nonetheless fulfills the essential role of jumpstarting the country's effort to "rebalance" to a new, more urban and more consumption-based economic model.
  • This means that in the next few years, China faces inexorable and potentially very rapid decline in the two sectors that have underpinned economic growth and social and political stability for the past two or more decades: exports and construction.
  • And it does so in an environment of rapidly mounting local government and corporate debt, rising wages and input costs, rising cost of capital and falling return on investment (exacerbated by new environmental controls and efforts to combat corruption) and more.
  • Chinese household consumption is extraordinarily weak. In 2013, it was equivalent to only 34 percent of gross domestic product, compared to 69-70 percent in the United States, 61 percent in Japan, 57 percent in Germany and 52 percent in South Korea.
  • Whatever the Chinese government's stated reform goals, it is very difficult to see how economic rebalancing toward a consumption- and services-based economy succeeds within the decade. It is very difficult to see how exports recover. And it is very difficult, but slightly less so, to see how the government maintains stable growth through continued investment into housing and infrastructure construction, especially as the real estate market inevitably cools.
  • The pressures stemming from China's economy -- and emanating upward through Chinese society and politics -- will remain paramount over the next 5-10 years.
  • The above has described only a very small selection of the internal social and economic constraints facing China's government today. It completely neglects public anger over pollution, the myriad economic and industrial constraints posed by both pollution and pervasive low-level corruption, the impact of changes in Chinese labor flows and dynamics, rising education levels and much more. It completely neglects the ambivalence with which many ordinary Chinese regard the Communist Party government.
  • It also neglects external pressures and risks, whether economic or military.
  • Xi knows this. He and his advisers know China's virtually insurmountable challenges better than anyone.
  • The anti-corruption campaign is one of those steps. It serves many overlapping functions: to clear out potential opponents, ideological or otherwise
  • Underlying and encompassing these, we see the specter of something else. The consensus-based model of politics that Deng built in order to regularize decision-making and bolster political stability during times of high growth and that effectively guided China throughout the post-Deng era is breaking down.
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    "Chinese President Xi Jinping's anti-corruption campaign is the broadest and deepest effort to purge, reorganize and rectify the Communist Party leadership since the death of Mao Zedong in 1976 and the rise of Deng Xiaoping two years later. It has already probed more than 182,000 officials across numerous regions and at all levels of government. It has ensnared low-level cadres, mid-level functionaries and chiefs of major state-owned enterprises and ministries. It has deposed top military officials and even a former member of the hitherto immune Politburo Standing Committee, China's highest governing body. More than a year after its formal commencement and more than two years since its unofficial start with the downfall of Chongqing Party Secretary Bo Xilai, the campaign shows no sign of relenting."
anonymous

Americans Voting Smarter About Crime, Justice At Polls - 0 views

  • Just 15 or 20 years ago, headlines like these were unimaginable. But marijuana legalization didn't just win in Washington and Coloardo, it won big.
  • In Colorado, it outpolled President Barack Obama. In Washington, Obama beat pot by less than half a percentage point. Medical marijuana also won in Massachusetts, and nearly won in Arkansas. (Legalization of pot lost in Oregon, but drug law reformers contend that was due to a poorly written ballot initiative that would basically have made the state a vendor.)
  • But it wasn't just pot. In California, voters reined in the state's infamous "Three Strikes and You're Out" law, passing a measure that now requires the third offense to be a serious or violent felony before the automatic life sentence kicks in. The results don't negate the law, but they do take some of the teeth out of it. And the margin -- the reform passed by more than a 2-to-1 margin -- has significant symbolic value. Three Strikes was arguably the most high-profile and highly touted of the get-tough-on-crime policies of the 1980s and 1990s. It epitomized the slogan-based approach to criminal justice policy that politicians tended to take during the prison boom.
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  • "I definitely think we're seeing a shift in the public opinion," he says. "This election was really a game changing event."
  • The recent results seem to indicate that at least in some parts of the country, the electorate is paying more attention to criminal justice issues, is more willing to hold law enforcement officials accountable and is less credulous when it comes to tough-on-crime posturing.
  • "While it’s refreshing to know that voters in the initiative states understand that reforms were necessary and good, I hear from prisoners every day who are being sentenced to decades behind bars for nonviolent drug offenses. We still have a very long way to go to reach the tipping point that will significantly change our national affection for over-punishment."
  • Even if the public mood has shifted, Congress is usually way behind. "There's always an innate caution among politicians about doing anything they perceive as controversial," Sterling says. "They're really sensitive to what cops say. They don't want the police unions opposing them, and no politician wants to pick a fight with a police chief. When I was on Capitol Hill, and this was 20-25 years ago, I had lawmakers tell me that it made perfect sense to them to legalize drugs. But they'd always say, 'You can never quote me on that.' None of them wanted to appear soft on crime, even if it was the right thing to do."
  • The conservative flagship think tank the Heritage Foundation recently launched its "overcriminalized" project, which critiques the ever-growing criminal code and the expanding power of prosecutors. A number of conservative voices have recently come out against the death penalty, including Brent Bozell, Richard Viguerie, and David Brooks.
  • "I think with the soaring prison population, and with groups like Chuck Colson's Prison Fellowship, many conservatives have started to come into contact with people who are or have been in prison," Sterling says. "Having personal contacts like that can change your views. When you're close to it, you start to realize how excessive it has become. And I think it can speak to religious values. Too little punishment is wrong. But they're seeing that too much punishment is just as wrong."
  • The one thing the 2012 results may do at the federal level is begin to convince some politicians that advocating reform is no longer political suicide. "This year’s initiatives in California, Colorado and Washington do indicate a changed public perception about punishment and marijuana in those states," Stewart says. "That should give legislators the freedom, if they choose to exercise it, to ease their tough-on-crime positions and not have to worry about surviving the next election." Sterling agrees. "I think it could give some cover to political leaders who already thought these things but were afraid to say them. My contacts close to the Obama administration say they were really taken aback by the results in those states. They didn't expect the vote to be as lopsided as it was. I think they really don't know what to do right now. But when medical marijuana first passed in California 16 years ago, you saw (Clinton Drug Czar) Barry McCaffrey preparing his counterattack within hours. I haven't heard of anything like that in the works this time around. I think that's a good sign."
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    "A headline from the Denver Post this week read: "Colorado Drug Force Disbanding." Another from the Seattle Times announced, "220 Marijuana Cases Dismissed In King, Pierce Counties.""
anonymous

The Geopolitics of the Yangtze River: Developing the Interior - 0 views

  • As the competitive advantage of low-cost, export-oriented manufacturing in China's coastal industrial hubs wanes, Beijing will rely more heavily on the cities along the western and central stretches of the Yangtze River to drive the development of a supplemental industrial base throughout the country's interior.
  • Managing the migration of industrial activity from the coast to the interior -- and the social, political and economic strains that migration will create -- is a necessary precondition for the Communist Party's long-term goal of rebalancing toward a more stable and sustainable growth model based on higher domestic consumption. In other words, it is critical to ensuring long-term regime security.
  • China is in many ways as geographically, culturally, ethnically and economically diverse as Europe. That regional diversity, which breeds inequality and in turn competition, makes unified China an inherently fragile entity. It must constantly balance between the interests of the center and those of regions with distinct and often contradictory economic and political interests.
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  • the central government has targeted the Yangtze River economic corridor -- the urban industrial zones lining the Yangtze River from Chongqing to Shanghai -- as a key area for investment, development and urbanization in the coming years. Ultimately, the Party hopes to transform the Yangtze's main 2,800-kilometer-long (1,700-mile-long) navigable channel into a central superhighway for goods and people, better connecting China's less developed interior provinces to the coast and to each other by way of water -- a significantly cheaper form of transport than road or railway.
  • The Yangtze River is the key geographic, ecological, cultural and economic feature of China.
  • Stretching 6,418 kilometers from its source in the Tibetan Plateau to its terminus in the East China Sea, the river both divides and connects the country. To its north lie the wheat fields and coal mines of the North China Plain and Loess Plateau, unified China's traditional political cores. Along its banks and to the south are the riverine wetlands and terraced mountain faces that historically supplied China with rice, tea, cotton and timber.
  • The river passes through the highlands of the Yunnan-Guizhou Plateau, the fertile Sichuan Basin, the lakes and marshes of the Middle Yangtze and on to the trade hubs of the Yangtze River Delta. Its watershed touches 19 provinces and is central to the economic life of more people than the populations of Russia and the United States combined.
  • The river's dozens of tributaries reach from Xian, in the southern Shaanxi province, to northern Guangdong -- a complex of capillaries without which China likely would never have coalesced into a single political entity.
  • The Yangtze, even more than the Yellow River, dictates the internal constraints on and strategic imperatives of China's rulers.
  • The Yellow River may be the origin of the Han Chinese civilization, but on its own it is far too weak to support the economic life of a great power.
  • The Yellow River is China's Hudson or Delaware. By contrast, the Yangtze is China's Mississippi -- the river that enabled China to become an empire.
  • Just as the Mississippi splits the United States into east and west, the Yangtze divides China into its two most basic geopolitical units: north and south.
  • This division, more than any other, forms the basis of Chinese political history and provides China's rulers with their most fundamental strategic imperative: unity of the lands above and below the river. Without both north and south, there is no China, only regional powers.
  • The constant cycle between periods of unity (when one power takes the lands north and south of the Yangtze) and disunity (when that power breaks into its constituent regional parts) constitutes Chinese political history.
  • If the Yangtze did not exist, or if its route had veered downward into South and Southeast Asia (like most of the rivers that begin on the Tibetan Plateau), China would be an altogether different and much less significant place.
  • The provinces of central China, which today produce more rice than all of India, would be as barren as Central Asia. Regional commercial and political power bases like the Yangtze River Delta or the Sichuan Basin would never have emerged. The entire flow of Chinese history would be different.
  • Three regions in particular make up the bulk of the Yangtze River Basin
  • the Upper (encompassing present-day Sichuan and Chongqing), Middle (Hubei, Hunan and Jiangxi) and Lower Yangtze (Jiangsu and Zhejiang provinces, as well as Shanghai and parts of Anhui).
  • Geography and time have made these regions into distinct and relatively autonomous units, each with its own history, culture and language. Each region has its own hubs -- Chengdu and Chongqing for the Upper Yangtze; Wuhan, Changsha and Nanchang for the Middle Yangtze; and Suzhou, Hangzhou and Shanghai for the Lower Yangtze.
  • In many ways, China was more deeply united under Mao Zedong than under any emperor since Kangxi in the 18th century. After 1978, the foundations of internal cohesion began to shift and crack as the reform and opening process directed central government attention and investment away from the interior (Mao's power base) and toward the coast.
  • Today, faced with the political and social consequences of that process, the Party is once again working to reintegrate and recentralize -- both in the sense of slowly reconsolidating central government control over key sectors of the economy and, more fundamentally, forcibly shifting the economy's productive core inland.
  • Today, the Yangtze River is by far the world's busiest inland waterway for freight transport.
  • In 2011, more than 1.6 billion metric tons of goods passed through it, representing 40 percent of the nation's total inland waterborne cargo traffic and about 5 percent of all domestic goods transport that year
  • By 2011, the nine provincial capitals that sit along the Yangtze and its major tributaries had a combined gross domestic product of $1 trillion, up from $155 billion in 2001. That gives these cities a total wealth roughly comparable to the gross domestic products of South Korea and Mexico.
  • Investment in further industrial development along the Yangtze River reflects not only an organic transformation in the structure of the Chinese economy but also the intersection of complex political forces
  • First, there is a clear shift in central government policy away from intensive focus on coastal manufacturing at the expense of the interior (the dominant approach throughout the 1990s and early 2000s) and toward better integrating China's diverse regions into a coherent national economy.
  • Thirty years of export-oriented manufacturing centered in a handful of coastal cities generated huge wealth and created hundreds of millions of jobs. But it also created an economy characterized by deep discrepancies in the geographic allocation of resources and by very little internal cohesion.
  • By 2001, the economies of Shanghai and Shenzhen, for instance, were in many ways more connected to those of Tokyo, Seoul and Los Angeles than of the hinterlands of Sichuan and Shaanxi provinces.
  • The foundation of this model was an unending supply of cheap labor. In the 1980s, such workers came primarily from the coast. In the 1990s, when coastal labor pools had been largely exhausted, factories welcomed the influx of migrants from the interior. Soon, labor came to replace coal, iron ore and other raw materials as the interior's most important export to coastal industrial hubs. By the mid-2000s, between 250 million and 300 million migrant workers had fled from provinces like Henan, Anhui and Sichuan (where most people still lived on near-subsistence farming) in search of work in coastal cities.
  • This continual supply of cheap labor from the interior kept Chinese manufacturing cost-competitive throughout the 2000s -- far longer than if Chinese factories had only had the existing coastal labor pool to rely on.
  • But in doing so, it kept wages artificially low and, in turn, systematically undermined the development of a domestic consumer base. This was compounded by the fact that very little of the wealth generated by coastal manufacturing went to the workers.
  • Instead, it went to the state in the form of savings deposits into state-owned banks, revenue from taxes and land sales, or profits for the state-owned and state-affiliated enterprises
  • This dual process -- accumulation of wealth by the state and systematic wage repression in low-end coastal manufacturing -- significantly hampered the development of China's domestic consumer base. But even more troubling was the effect of labor migration, coupled with the relative lack of central government attention to enhancing inland industry throughout the 1990s and early 2000s, on the economies of interior provinces.
  • In trying to urbanize and industrialize the interior, Beijing is going against the grain of Chinese history -- a multimillennia saga of failed attempts to overcome the radical constraints of geography, population, food supply and culture through ambitious central government development programs.
  • Though its efforts thus far have yielded notable successes, such as rapid expansion of the country's railway system and soaring economic growth rates among inland provinces, they have not yet addressed a number of pivotal questions. Before it can move forward, Beijing must address the reform of the hukou (or household registration) system and the continued reliance on centrally allocated investment, as opposed to consumption, as a driver of growth.
  •  
    "This is the first piece in a three-part series on the geopolitical implications of China's move to transform the Yangtze River into a major internal economic corridor."
anonymous

China: The Next Phase of Reform - 0 views

  • The much-anticipated Third Plenary Session of the 18th Communist Party of China Central Committee concluded Nov. 12 after four days of closed-door deliberations among top political elites.
  • the initial information suggests China's leaders are seeking more significant changes in their policies
  • important policy changes include the establishment of a committee to guide the country’s comprehensive reform agenda, the establishment of an integrated National Security Committee responsible for coordinating public safety and national strategy, and the easing of the country's 33-year-old family planning policy to allow more couples to have a second child.
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  • The country's massive pool of cheap labor previously underpinned its economic and social transformation, but as China prepares to transition toward a consumer-based economy, its aging population is a problem.
  • China is now at a turning point. The country's economic growth has firmly cemented Chinese businesses and national interests around the globe. It has raised the living standards, but also the expectations, of China's citizens.
  • There is a growing sense of Chinese patriotism that exists beyond the confines of the Communist Party.
  • Modern forms of communication such as social media give Chinese citizens the ability to rapidly share successes and grievances across the country, to identify and single out cases of political corruption and to more actively keep the Party and leadership under scrutiny. At the same time, the expanded Chinese imports of raw materials and exports of commodities have substantially expanded China's active foreign interests, requiring a more nuanced and potentially a more activist foreign policy.
  •  
    "The commitment and ability of China's leaders to follow through on new policies and to meet rising expectations will be tested as they strive to balance competing social, economic, political and security challenges. Three decades ago, China embarked on a new path, creating a framework that encouraged the country's rapid economic rise. The successes of those policies have transformed China, and the country's leadership now faces another set of strategic choices to address China's new economic and international position."
anonymous

France in Turmoil | STRATFOR - 0 views

  • The two groups have different economic and social interests, but they are coming together in their angst toward the government and in their anger toward President Nicolas Sarkozy. This presents a dangerous situation for Paris, as it has the potential to spark wider societal unrest unless the government moves to satisfy one of the groups.
  • The origins of the French welfare state go back to the 60-year period of nearly constant turmoil following the 1789 French Revolution. The revolution was followed by the 1793-94 Reign of Terror; the White Terror of 1794; Napoleon Bonaparte’s rule from 1804 to 1814, which included an almost uninterrupted period of pan-European warfare; another White Terror in 1815; and two more revolutions, in 1830 and 1848. The 1848 Revolution took on a particularly socialist tinge, as a nascent working class that was growing amid the country’s industrialization united with the peasantry in protest of their conditions.
  • Under Napoleon III, social order was largely restored for the next 20 years — to be disrupted by the war against Prussia in 1870 — but more importantly, the French social welfare state became a crucial part of the government’s social contract with its citizens. In order to pacify and unite its restive population, the state vowed that it would take care of its citizens from cradle to grave.
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  • The French, in other words, are neither lazy nor illogical. The protesters see the reforms as a threshold that, if crossed by the government, could undermine the foundation of the last 150 years of French society. Thus, while only 7-8 percent of the working population belongs to a labor union — the lowest percentage in the EU and even lower than that in the United States — nearly 70 percent of the population supports the ongoing strikes and believes they should continue if the proposed reforms pass, which they likely will by Oct. 23.
  • The context of the 2010 unrest is therefore not very different from 1995. The French budget deficit is forecast to hit 8.2 percent of GDP, and Paris is being forced by Germany to rein in spending to conform to the EU’s fiscal rules. Germany is making EU-wide fiscal discipline an essential condition of its continued support for EU institutions, a message that was elucidated during the Greek sovereign debt crisis but understood to apply to everyone.
  • In addition to protests from the French middle classes and workers demanding a continuation of the established social contract, there are protests from French citizens who feel they were never offered that social contract in the first place.
  • The protests of the last couple of days in France have seen both groups pour out onto the streets. The rioting and violence are still not in any way at a level that could be construed as threatening to the government; both the 2005 and 2007 riots were more intense. However, the protesters are using more strategic tactics, targeting the country’s energy infrastructure, and hence are less reliant on drawing out the masses to the streets.
  • The youth need a flexible labor market and thus would need substantial portions of the French welfare state to be eroded if their employment situation were to be remedied. Therefore, Paris will have a hard time satisfying both groups.
  • Ultimately, the commitments Paris has made to its people over the last 150 years are incompatible with the commitments it has made to Berlin in the last 20 years.
  • However, the French state has a very clear history of conceding to its population’s demands. At the very least, it is inevitable that Paris will have to give in to one of the groups, either by admitting that the social contract cannot be changed or by offering it in an amended form to the disaffected youth and citizens of immigrant descent.
  • It is likely that it will give in to the more established group — the workers and middle classes — since they have shown with their tactics that they have the ability to seriously threaten the French state’s efforts to function by targeting its energy infrastructure. Simply moving forward with a policy that three-quarters of the population rejects is unsustainable. At the point when Paris gives in to one side, however, France may cease to be at conflict with itself and instead come into conflict with Germany.
  •  
    "Unrest in France sparked by protests against the government continued Oct. 21. The turmoil is ostensibly over proposed government pension reforms, but it is about much more than that. The protests themselves are a confrontation between the government and unionized labor - older generations that want to protect benefits hard won in the 19th century and enhanced in the 1970s and 1980s. At the same time, another group of French citizens - disaffected youths, many of immigrant Arab and African descent - are protesting not for employment benefits, but for employment itself." By StratFor on October 22, 2010.
anonymous

China: Reforming the State-Owned Sector - 0 views

  • China may be developing another organization to assist in reforming its state-owned enterprises (SOEs), according to media reports. China has long sought to improve the performance of its SOEs, and already has two such organizations tasked with conducting reforms. The emergence of this new group, called the Guoxin Asset Management Corp., underscores the importance Beijing places on salvaging its SOEs, legacies of the Maoist era that still hold influence in the country.
  • The advantage of this strategy is that it attempts to salvage productive sectors from a larger morass of inefficiency, state dependency and corruption. The disadvantage is that the consolidation process results in behemoth SOEs that are not well integrated or able to function as a whole, but that have a greater concentration of political power — mainly due to their $3.3 trillion worth of sales in 2009, and their role as major employers — and are able to preserve aspects of the state sector from private competition, demand continued public funds for support, and serve as vehicles for government officials’ pet projects, in turn squeezing private sector development.
anonymous

Health care reform: A simple explanation, updated - 0 views

  • The Senate bill does not require employers to offer insurance, but it does impose taxes on employers if they don't offer insurance and their employees qualify for new health insurance tax credits.
  • regulate the exchanges so that insurance companies couldn't discriminate against people with pre-existing conditions, or charge wildly different amounts for similar coverage.
  • Insurers would have to cover preventive care, and they wouldn't be able to cut off coverage unfairly or set annual limits on benefits.
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  • expands eligibility for insurance programs like Medicaid and the state Children's Health Insurance Program. All poor people would qualify for Medicaid.
  • People who don't buy insurance would have to pay a penalty on their taxes. Under the Senate bill, the share of legal nonelderly residents with insurance coverage is expected to rise from about 83 percent currently to about 94 percent.
  • promote standardized electronic health records
  • A comparative effectiveness research center would conduct and publish scientific research to find which treatments are the most effective.
  • the new rules aim to pay doctors for good patient outcomes instead of paying them per procedure, also called "fee-for-service."
  • For the large group market, the CBO found that rates would either stay the same or decline slightly. For the small group market, rates would essentially stay the same as well. The individual market is a more complicated story
  • Covering millions of people who are now uninsured would cost billions more per year.
  • Critics say the Democratic plans would lead to health care rationing.
  • The public option is an insurance plan run by the government that individuals can choose over private insurance.
  • The more generous the benefits, the higher the costs.
  • The House measure put more restrictions on how insurers could offer coverage for abortion services.
  • the CBO warns that it's very difficult to put dollar figures on many of these things, because of the size of the health care industry and the inherent unpredictability of major policy changes over many years.
  • It's good to keep in mind that when it comes to health care reform, no one has a crystal ball.
  •  
    From Politifact. A basic explanation.
anonymous

StratFor Annual Forecast 2013 - 0 views

  • Generational shifts take time to play out and often begin with a period of denial as the forces of the international system struggle to preserve the old order. In 2013, that state of denial will persist in many areas. But we are more than four years into this cyclical transformation, and change is becoming more palpable and much harder to deny with every passing month.
  • In Europe, short-term remedies that are so far preserving the integrity of the European Union are also papering over the deep, structural ailments of the bloc.
  • China is not so much in denial of its current predicament as it is constrained in its ability to cope with a dramatic shift from high export-oriented growth to more sustainable development of its interior.
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  • The emerging economies of the post-China world will take time to develop, but 2013 will be an important year in determining which are best positioned to fill the growing void left by China.
  • Change will be primarily violent in nature -- and thus harder to miss -- in the Middle East.
  • The United States is also not immune to change. In this generational shift, and all the tumult that comes with it, Washington will be forced to learn the value of restraint in balance-of-power politics, preferring to lean on regional partners and encourage strategic competition as a way of preserving its own power.
  • The Arab world is moving uncomfortably between two eras. The post-World War II era, in which Arab dictatorships and monarchies supplanted colonial rule, is now roughly blending with -- or in some cases outright colliding with -- a fractured landscape of long-repressed Islamist forces.
  • This dynamic will be particularly visible in the northern Levant region this year as Syria and Lebanon continue coming apart. From Stratfor's perspective, the regime in Syria has already fallen and is giving way to a familiar state of warlordism, where militias and clan interests reign supreme. There is no longer a political entity capable of wielding control over the entirety of Syrian territory, nor will there be for some time.
  • once Syrian President Bashar al Assad is removed from power, whether through a negotiated deal or by force, the Sunni forces will fragment along ideological, ethnic and geographic lines, with Salafist-jihadist forces battling against a more politically minded Muslim Brotherhood and secular Sunnis.
  • As their grip over Aleppo slips, Alawite forces will try to hold Damascus while preparing a mass retreat to their coastal enclave. The battle for Damascus could extend beyond the scope of this forecast.
  • The potential use of chemical weapons by Alawite forces in a state of desperation could accelerate the unraveling of the region; a U.S.-led coalition would have to assemble in haste to contain the chemical weapons threat.
  • To be clear, the United States is not looking for a pretext to intervene militarily in Syria. On the contrary, the United States will make every effort possible to avoid another military campaign in the Islamic world this year.
  • A military conflict between the United States and Iran remains unlikely in 2013.
  • The growing disparity in the U.S. and Iranian negotiating positions will largely relegate Iran to the role of regional spoiler. So long as Iran can create pain for its regional adversaries, it can slow its own descent.
  • Iraq remains Iran's primary regional imperative, however. The momentum building among Sunni forces in Syria will eventually spill into Iraq and challenge Shiite dominance.
  • Iran's presidential elections in June will reveal the declining relevancy of the clerical elite and the populist faction embodied by outgoing President Mahmoud Ahmadinejad. This creates a political void for the Revolutionary Guard to fill. The Supreme Leader Ayatollah Ali Khamenei will try to check the Corps' growing influence by bolstering rival military and security agencies and backing a less controversial and more politically malleable ally from the pragmatic conservative camp for the presidency.
  • In Egypt, the military will adapt to an emerging Islamist political order. The military will remain the ultimate arbiter of the state and will rely on a number of factors -- including a fragmented judiciary, the military's economic leverage, a divided Islamist political landscape and the military's foreign relationships -- to check the Muslim Brotherhood.
  • Egypt's consuming political transition will leave opportunities for flare-ups in the Sinai Peninsula and in Gaza, but we do not expect a significant breach between Israel and Egypt this year.
  • Jordan, the oft-overlooked casualty of the Arab Spring, will continue to destabilize quietly and slowly in 2013
  • Israel and Turkey are both greatly affected by the shifting political dynamics of the Arab world, but both have little means to influence the change. The two former allies will continue exploring ways to restore a quiet working relationship under these new regional stresses, but a public restoration of diplomatic ties is less likely.
  • Israel will struggle internally over how to adapt to a new regional framework in which the reliability of old working partners is called into question.
  • Turkey sees an opportunity in the rise of Islamist forces in the Arab world but Ankara's limited influences restrain its actions beyond Turkish borders.
  • A more aggressive Saudi role in Syria will aggravate the civil war and create competition with other regional stakeholders, including Turkey, Qatar and Jordan.
  • In 2012, the European Union took numerous steps to mitigate the financial impact of its ongoing crisis.
  •  These actions, which helped to keep the eurozone afloat in 2012, will remain effective in 2013, making it very likely that the eurozone will survive another year. But these tools do not solve three fundamental aspects of the European crisis. 
  • First, the European crisis is fundamentally a crisis of competitiveness.
  • Second, the crisis has a political aspect. The European Union is not a federation but a collection of nation-states bound together by international treaties.
  • Third, the European crisis is threatening the social stability in some countries, especially in the eurozone's periphery.
  • In 2013, the two largest economies of the eurozone (Germany and France) will face low growth or even stagnation. This will have negative effects across Europe.
  • In 2013, the crisis will keep damaging economic conditions in the eurozone periphery. Greece, Spain, Portugal and Italy will see their economies shrink and unemployment rates rise. In all these countries, the social unrest will grow and the year will be marked by permanent protests and strikes. 
  • The conspicuous divide between the ruling elite and the populations of the periphery will be a key element in 2013, and some governments could fall. But even if opposition parties take power, they will face the same constraints as the governments that preceded them. In other words, a change in politicians will not bring a substantial change in policies regarding the European Union.
  • The only country in the eurozone periphery that has scheduled elections is Italy (in February). If the next Italian government fails to achieve political stability and apply economic reforms, the increased market pressure on Italy will make Rome more likely to require financial assistance from Brussels.
  • Because of the fundamental contradictions in the national interests and foreign policy strategies of the EU member states, the European crisis will continue generating political and economic divisions in the Continent in 2013.
  • Outside the eurozone, the United Kingdom will seek to protect its sovereignty and renegotiate its status within the European Union. But London will not leave the European Union in 2013.
  • Domestic Issues After the political tumult of 2012, Russia will face another year of anti-Kremlin protests, tensions among various political factions and ethnic groups, crackdowns and government reshuffles. Overall, the political tensions will remain manageable and will not pose a serious challenge to Moscow's control.
  • Russia has made significant progress recently in re-establishing influence in its former Soviet periphery.
  • Russia's relationship with Ukraine could be its most important connection in the former Soviet Union in 2013. Russia has been pursuing integration with Ukraine, primarily by taking over its natural gas transit infrastructure and calling on Kiev to join the Customs Union.
  • Georgia will be Russia's main concern in the Caucasus in 2013. With the political emergence of billionaire tycoon Bidzina Ivanishvili and his Georgian Dream movement, Russia's position in the country strengthened at the expense of the anti-Russian camp of Georgian President Mikhail Saakashvili.
  • In the past year, Russia has changed its tactics toward Europe to preserve its presence and leverage for the future. Russia's primary link to Europe is the Europeans' dependence on Russia's large energy supplies, which Moscow knows will be threatened when more non-Russian supplies become available.
  • In 2012, Russia began shifting away from its aggressive stance on energy -- particularly its high prices -- to strike long-term deals that will maintain Russia's market share with its primary strategic customers, such as Germany, Italy and Turkey. Russia will continue this strategy in 2013 as it continues to build new infrastructure to directly link its supplies to Europe.
  • The United States and Russia will continue sparring over trade matters, negotiations for a new nuclear arms treaty and Russia's role in Iran and Syria. Stratfor does not expect major changes from Washington or Moscow that would break the gridlock in negotiations on these issues.
  • The low-level violence and instability that occurred throughout Central Asia in 2012 will continue in 2013.
  • Three things will shape events in East Asia in 2013: Beijing's struggle to maintain social and political stability amid lower economic growth rates; China's accelerating military modernization and increasingly aggressive moves to secure its territorial and economic interests in the region; and varied efforts by other regional players, including the United States, to adapt to China's changes. 
  • In 2013, the Chinese economy will continue the gradual, painful process of moving away from high export-driven growth and toward a model that is more sustainable in the long run.
  • But barring another global financial meltdown on the scale of 2008-2009, China's coastal manufacturing economy will not collapse outright. The decline will be gradual.
  • The ongoing, gradual eclipse of coastal China as a hub of global manufacturing over the next several years will lead to higher unemployment and social dislocation as more of China's 250 million-strong migrant labor force returns inland in search of work. 
  • Shadow banking is by no means new in China. But it has grown significantly in the past few years from the geographically isolated informal loan markets of coastal cities to a complex network of semi-legal entities that provides between 12 and 30 trillion yuan (between $1.9 trillion and $4.8 trillion) in credit -- at interest rates of 20-36 percent -- to thousands of struggling small businesses nationwide.
  • The Party's growing sense of insecurity -- both internally and with regard to the social consequences of China's economic transition -- likely will be reflected in continued censorship of online social platforms like Weibo, crackdowns on religious or other groups perceived as threatening, and the Chinese military's growing assertiveness over China's interests in the South and East China seas and Southeast Asia.
  • The decline of low-end coastal manufacturing in China will present enormous opportunities for Southeast Asian countries like Indonesia, Vietnam, the Philippines and potentially Myanmar -- all of whom will continue to push strongly for foreign investment not only into natural resources and raw materials industries but also into developing better urban, transport, power generation and materials processing infrastructure.
  • Meanwhile, Vietnam and the Philippines -- China's most vocal opponents in Southeast Asia -- will continue to push for greater integration among members of the Association of Southeast Asian Nations and for U.S. business and military engagement in the region.
  • The Coming U.S. Withdrawal from Afghanistan Ahead of the 2014 drawdown of U.S. troops from Afghanistan, efforts will intensify to negotiate a settlement that gives the Taliban a place in a new government.
  • The negotiations will face numerous obstacles this year. There will be an upsurge in violence -- both in terms of officially sanctioned attacks designed to gain advantage on the negotiating table and spoiler attacks by Taliban elements allied with al Qaeda on both sides of the Afghan-Pakistani border.
  • Washington's intention to reduce its presence in the region will spur regional actors to fill the void. Pakistan will increase its interactions with Russia, Central Asia and Iran to prepare for a post-U.S. Afghanistan.
  • India will also turn its attention eastward, where the United States is quietly trying to forge a coalition of regional partners to keep a check on China in the Indo-Pacific basin. Myanmar in particular will be an active battleground for influence this year.
  • Preparing for a Post-Chavez Venezuela After a year of successful campaigning for re-election, Venezuelan President Hugo Chavez is in questionable health. Although the ultimate outcome of December's medical treatment for the ailing leader is unpredictable, Chavez's decision to name Vice President Nicolas Maduro as a political successor at the end of 2012 indicates that there is significant concern for his ability to remain in power.
  • Although it remains possible that Chavez will stay in power through the year, for Maduro to capitalize on Chavez's recent political gains, elections may need to be called sooner rather than later, regardless of Chavez's immediate health status.
  • Throughout 2013, Colombia will continue the incremental process of negotiating an end to the conflict with the Revolutionary Armed Forces of Colombia, known by its Spanish acronym FARC.
  • This will be a year of significant transition for Mexico. Policy issues that were bottled up by intra-party competition in the waning years of the National Action Party's administration have begun coming to the fore and will dominate 2013. These include socio-political issues like education, tax and pension reform.
  • The most important issue facing Mexico in 2013 will be energy policy.
  •  
    "At the beginning of 2012, we argued that the international system is undergoing a generational transformation -- the kind that occurs every 20 years or so. The cycle we are now in started in 2008-2009, when global financial contagion exposed the underlying weaknesses of Europe and eventually cracked China's export-oriented economic model. The Middle East then began to deviate from its post-World War II paradigm with an attempted resurgence by Iran, the regional rise of Islamists and the decline of age-old autocratic regimes in the Arab world."
anonymous

What Gay Marriage Polls Tells Us About Marijuana Legalization | TPMDC - 0 views

  • But if you were surprised at how quickly marriage equality happened, get ready for another shock: pot’s going to be legal too. The same demographic and cultural changes that propelled marriage equality to majority status are already pushing support for legal pot to the same place.
  • TPM analyzed all available, nationwide polling data on the questions of full marijuana legalization and marriage equality for the past 18 years and found public opinion on the two issues has taken a nearly identical trajectory.
  • Though marijuana legalization is slightly behind marriage equality in terms of public opinion, it has enjoyed a steadier climb along the way to earning the support of nearly half the country. As the accompanying chart shows, backing and opposition to marriage equality has undergone some dramatic dips and peaks over the last seventeen years. On the other hand, support for marijuana legalization has simply moved, pardon the pun, higher and higher each year. This could be an indication marijuana legalization may enjoy an even smoother ride to ultimate approval than marriage equality.
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  • TPM spoke with activists working on both issues and they identified several reasons marijuana legalization may have a less bumpy road along the way to earning nationwide support.
  • Erik Altieri, a spokesman for the National Organization for the Reform of Marijuana Laws, a pro-marijuana lobbying group, said a major factor behind this may be legalizations natural appeal among some conservatives and libertarians who see it as a civil liberties issue.
  • They also pointed out marriage equality has entrenched opposition among religious, social conservatives — something pot legalization lacks.
  • “The argument for legalization has really been sort of couched in medical usage. You still have to sell marriage. Not everyone knows a gay person or a gay person who wants to marry their same-sex partner. Everyone knows someone who smokes weed,” the consultant said.
  • In theory, support for pot legalization could stall at the current 50/50 split. But one key trend, the same driving the seemingly inexorable rise of support for gay marriage, makes that outcome highly unlikely. Young people overwhelmingly support legalization. And diehard opposition is heavily concentrated among older voters.
  • Between 2009 and 2012 support for marijuana legalization grew at nearly twice the rate it had at any time since 1995. Altieri attributes this rapid increase to the economic crisis.
  • “What I would really pinpoint as the source of this last four year nudge up where we jumped up 10 points is the economy,” Altieri said. “People always knew we shouldn’t be giving such harsh punishments to those arrested for marijuana offenses and spending hundreds of millions of dollars to put them in jail. It became much more imperative when we had the financial crisis and then we’re seeing the debt ceiling.”
  • In two dozen states there are forty or so marijuana reform bills in play ranging from simple decriminalization, to medicalization and full-on legalization. Where we’re also seeing the movement is on the federal level where we haven’t previously. There are six to seven federal marijuana bills in Congress and they span the scope like we haven’t seen before including a call for a presidential commission to look at medical marijuana and Jared Polis’ legislation to remove marijuana from the Controlled Substances Act, which would essentially end the federal government’s involvement in marijuana prohibition.”
  • While President Barack Obama, Hillary Clinton and a growing crowd of the most high-level national politicians has jumped on the bandwagon of marriage equality backers, the marijuana legalization movement hasn’t had a similar infusion of political star power.
  • “More politicians are going to come aboard as they are realizing that this is no longer a political third rail, that this is a political opportunity for them. They’re self interested creatures at heart, so that’s what theyre paying attention too,” Altieri said. “When Colorado and Washington did what they did, it took the issue to a new level of legitimacy that we’d never seen. This was no longer something that people could make snide comments about on cable news.” 
  • Washington and Colorado’s legalization law also set the stage for a pivotal moment where Attorney General Eric Holder will decide whether to intervene in those states and arrest those involved in the (still federally illegal) marijuana trade.
  • “History has shown that, once you hit 60 percent on an issue in this country, it gets really hard to go against it,” he said. At the average rate support for legalization has grown since 1995, public opinion will hit that magic 60 percent threshold by 2022. But based on the rate backing for legalization has grown between 2009 and 2012, we could see public support for the issue reach that number bey 2019.
    • anonymous
       
      That's entertainingly close to the two dates (from non-related sources) that point to our cyclical/structural socio-economic realignment. On thing is certain (to me): Pot legalization will suddenly become a non-issue as states (and eventually, the feds) see it as a much needed source of revenue (along with cutting a few legs out of the prison-industrial complex).
  •  
    "With the Supreme Court now at least considering a definitive statement in favor of gay marriage and support for marriage equality now practically a litmus test issue for Democratic politicians, Americans across the political spectrum are expressing surprise at how rapidly this once marginalized idea became something like a national consensus."
anonymous

The Geopolitics of the Yangtze River: Conflicting Imperatives - 0 views

  • In the case of Yangtze development, an official from China's National Development and Reform Commission noted in May 2011 a shift in the focus of central government port development policy from the coast to the interior, adding that most of the opportunities for future port-related investment would be in cities along the Yangtze River.
  • Wuhan's 10-year port redevelopment program is set to consume a large percentage of that investment -- at $28.6 billion, the program accounts for around 70 percent of the country's total ongoing and planned port construction -- though another $4 billion to $5 billion has been set aside for dredging and port expansion everywhere from Chongqing municipality in southwest China to Wuhu in Anhui province.
  • The central government's heightened emphasis on inland waterway port expansion is incongruous with port throughput trends during the previous five-year period, 2007-2011.
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  • Not surprisingly, China's coastal ports dwarf inland ports in terms of both overall throughput and throughput growth. But more telling is that of the major Yangtze ports for which the National Bureau of Statistics provides freight traffic data, only three (at Chongqing, Yueyang and Wuhu) showed significant growth in throughput between 2007 and 2011.
  • Wuhan, the flagship of new port investment on the Yangtze as well as nationally, actually saw declines in both the number of berths and freight throughput during that period.
  • The apparent gap between central government policy prerogatives and the reality of port traffic growth trends exemplifies the way economic development policy under the Communist Party not only responds to present needs but also in many ways actively shapes future realities.
  • Going forward, the question for Beijing will be whether and to what extent it is able to realize its ambitious plans for the Yangtze River corridor and inland China as a whole. Even then, it is not clear that expanding and industrializing a handful of inland cities will reduce mounting economic imbalances or social tensions unless combined with significant changes to a range of other policies, including the hukou (or household registration) system and the fiscal and financial relationship between city, provincial and national governments. Significant changes to these policies will, in turn, meet steep resistance from entrenched bureaucratic interests. More fundamentally, such changes would likely unleash the social unrest that Beijing's entire political economic system is intended to manage.
  • port development in Wuhan is similar to projects like the Three Gorges Dam or the ongoing South-North Water Transfer Project, which seeks to divert up to 10 percent of the Yangtze River's flow to water-starved provinces in northern China. All three are attempts to reconcile immense geographic and environmental constraints with the ballooning demands (both consumer and industrial) of an enormous population and an ever-expanding economy -- all while providing enough jobs to maintain a degree of stability.
  • The problem, then, is not simply that the Chinese government's approach to economic development is inconsistent with the needs of the economy and population as a whole
  • Rather, it is that the needs of the economy -- growth with stability, and energy security despite energy demands that far outstrip domestic resources -- are themselves inconsistent and contradictory.
  •  
    "Beijing pursues far-reaching development programs such as the industrialization of the Yangtze River region not always because they make economic sense -- often they do not -- but because it must do so to sustain the basic social and economic structures that secure the regime."
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

Huntington on Upheaval - 0 views

  • The very first sentences of Political Order have elicited anger from Washington policy elites for decades now -- precisely because they are so undeniable. "The most important political distinction among countries," Huntington writes, "concerns not their form of government but their degree of government." In other words, strong democracies and strong dictatorships have more in common than strong democracies and weak democracies.
  • hus, the United States always had more in common with the Soviet Union than with any fragile, tottering democracy in the Third World. This, in turn, is because order usually comes before freedom -- for without a reasonable degree of administrative order, freedom can have little value.
  • Huntington quotes the mid-20th century American journalist, Walter Lippmann: "There is no greater necessity for men who live in communities than that they be governed, self-governed if possible, well-governed if they are fortunate, but in any event, governed."
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  • Huntington, who died in 2008, asserts that America has little to teach a tumultuous world in transition because Americans are compromised by their own "happy history."
  • Americans assume a "unity of goodness": that all good things like democracy, economic development, social justice and so on go together. But for many places with different historical experiences based on different geographies and circumstances that isn't always the case.
  • many countries in the developing world are saddled either with few institutions or illegitimate ones at that: so that they have to build an administrative order from scratch. Quite a few of the countries affected by the Arab Spring are in this category. So American advice is more dubious than supposed, because America's experience is the opposite of the rest of the world.
  • For the more complex a society is, the more that institutions are required. The so-called public interest is really the interest in institutions. In modern states, loyalty is to institutions. To wit, Americans voluntarily pay taxes to the Internal Revenue Service and lose respect for those who are exposed as tax cheaters.
  • For without institutions like a judiciary, what and who is there to determine what exactly is right and wrong, and to enforce such distinctions?
  • What individual Arabs and Chinese really want is justice. And justice is ultimately the fruit of enlightened administration.
  • How do you know if a society has effective institutions? Huntington writes that one way is to see how good their militaries are. Because societies that have made war well -- Sparta, Rome, Great Britain, America -- have also been well-governed. For effective war-making requires deep organizations, which, in turn, requires trust and predictability.
  • The ability to fight in large numbers is by itself a sign of civilization. Arab states whose regimes have fallen -- Egypt, Libya, Syria -- never had very good state armies. But sub-state armies in the Middle East -- Hezbollah in Lebanon, the Mehdi Army in Iraq, the various rebel groups in Syria and militias in Libya -- have often fought impressively. Huntington might postulate that this is an indication of new political formations that will eventually replace post-colonial states.
  • Huntington implies that today's instability -- the riotous formation of new institutional orders -- is caused by urbanization and enlightenment. As societies become more urbanized, people come into close contact with strangers beyond their family groups, requiring the intense organization of police forces, sewage, street lighting, traffic and so forth.
  • The main drama of the Middle East and China over the past half-century, remember, has been urbanization, which has affected religion, morals and much else. State autocrats have simply been unable to keep up with dynamic social change.
  • He writes that large numbers of illiterate people in a democracy such as India's can actually be stabilizing, since illiterates have relatively few demands; but as literacy increase, voters become more demanding, and their participation in democratic groupings like labor unions goes up, leading to instability. An India of more and more literate voters may experience more unrest.
  • As for corruption, rather than something to be reviled, it can be a sign of modernization, in which new sources of wealth and power are being created even as institutions cannot keep up. Corruption can also be a replacement for revolution. "He who corrupts a system's police officers is more likely to identify with the system than he who storms the system's police stations."
  • In Huntington's minds, monarchies, rather than reactionary, can often be more dedicated to real reform than modernizing dictatorships. For the monarch has historical legitimacy, even as he feels the need to prove himself through good works; while the secular dictator sees himself as the vanquisher of colonialism, and thus entitled to the spoils of power.
  • Huntington thus helps a little to explain why monarchs such as those in Morocco, Jordan and Oman have been more humane than dictators such as those in Libya, Syria and Iraq.
  • As for military dictatorships, Huntington adds several twists.
  • He writes, "In the world of oligarchy, the soldier is a radical; in the middle-class world he is a participant and arbiter; as the mass society looms on the horizon he becomes the conservative guardian of the existing order.
  • Thus, paradoxically but understandably," he goes on, "the more backward a society is, the more progressive the role of its military..." And so he explains why Latin America and sub-Saharan Africa underwent a plethora of military coups during the middle decades of the Cold War: The officer corps often represented the most enlightened branch of society at the time.
  • Americans see the military as conservative only because of our own particular stage of development as a mass society.
  • The logic behind much of Huntington's narrative is that the creation of order -- not the mere holding of elections -- is progressive.
  • Only once order is established can popular pressure be constructively asserted to make such order less coercive and more institutionally subtle.
  • Precisely because we inhabit an era of immense social change, there will be continual political upheaval, as human populations seek to live under more receptive institutional orders. To better navigate the ensuing crises, American leaders would do well to read Huntington, so as to nuance their often stuffy lectures to foreigners about how to reform.
  •  
    "In 1968, Harvard political scientist Samuel P. Huntington published Political Order in Changing Societies. Forty-five years later, the book remains without question the greatest guide to today's current events. Forget the libraries of books on globalization, Political Order reigns supreme: arguably the most incisive, albeit impolite, work produced by a political scientist in the 20th century. If you want to understand the Arab Spring, the economic and social transition in China, or much else, ignore newspaper opinion pages and read Huntington."
anonymous

Mr. America - 0 views

  • As the 41st Republican in an institution that requires 60 out of 100 votes to pass legislation, he’s had the power to stop, or at least massively slow down, everything from health care to financial reform. But Brown actually looms much larger than even this calculus would suggest. In his concerns, priorities, and, maybe most important, his confusion about the economy, Brown has come to represent the average voter in 2010. If Democrats are going to be successful this November, they’ll have to figure out a way to seize the territory that Brown currently holds.
  • A recent Globe poll illustrates the point nicely, crowning Brown the most popular politician in his overwhelmingly Democratic state. According to the poll, Brown’s favorable/unfavorable split is 55-18, versus 52-37 for Kerry and 54-41 for Barack Obama. Brown accomplishes this feat on the strength of his appeal to independents (55-11) and a surprisingly robust showing among Democrats (41-32). Given that Democratic candidates are highly unlikely to win many Republican votes this fall, they’ll have to limit their defections among Democrats and carry independents in order to hold Congress. Judged against Brown’s performance in Massachusetts, they are currently failing at this task.
  • Brown has been following a simple formula for building public support as a Republican: Toe as right-wing a line as you can without alienating the political middle. To take the subject of his interactions with Tim Geithner, Brown has used his influence as a pivotal Senate vote to extract loopholes for financial firms (like easing restrictions on their investments in hedge funds) and to beat back a tax on big banks. But, in the end, there’s little doubt he’ll embrace the financial reform bill.
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  • One of his first acts as a senator was to vote for a $15-billion Democratic measure giving companies a payroll tax-break if they hire unemployed workers.
  •  
    "Why Scott Brown is the key to U.S. politics" By Noam Scheiber in the New Republic on July 12, 2010. All I can say is, "hmmmmmm, okay...."
anonymous

Designing society for posterity - 0 views

  • We humans are really bad at designing institutions that outlast the life expectancy of a single human being. The average democratically elected administration lasts 3-8 years; public corporations last 30 years; the Leninist project lasted 70 years (and went off the rails after a decade). The Catholic Church, the Japanese monarchy, and a few other institutions have lasted more than a millennium, but they're all almost unrecognizably different.
  •  
    "If you can crank yourself up to 1% of light-speed, alpha centauri is more than four and a half centuries away at cruising speed. To put it in perspective, that's the same span of time that separates us from the Conquistadores and the Reformation; it's twice the lifespan of the United States of America." By Charlie Stoss at Charlie's Diary on November 12, 2009.
anonymous

Would Tort Reform Lower Costs? - 0 views

  • Q. But critics of the current system say that 10 to 15 percent of medical costs are due to medical malpractice. A. That’s wildly exaggerated. According to the actuarial consulting firm Towers Perrin, medical malpractice tort costs were $30.4 billion in 2007, the last year for which data are available. We have a more than a $2 trillion health care system. That puts litigation costs and malpractice insurance at 1 to 1.5 percent of total medical costs. That’s a rounding error. Liability isn’t even the tail on the cost dog. It’s the hair on the end of the tail.
  • Q. What about Senator John Kerry’s assertion that it’s “doable” to rid the system of frivolous lawsuits? A. I guess it’s doable because there aren’t very many frivolous suits.
  •  
    "On "This Week With George Stephanopoulos," Senators Orrin G. Hatch, Republican of Utah, and John Kerry, Democrat of Massachusetts, seemed to agree that medical malpractice lawsuits are driving up health care costs and should be limited in some way. "We've got to find some way of getting rid of the frivolous cases, and most of them are," Mr. Hatch said. "And that's doable, most definitely," Mr. Kerry replied. But some academics who study the system are less certain. One critic is Tom Baker, a professor of law and health sciences at the University of Pennsylvania School of Law and author of "The Medical Malpractice Myth," who believes that making the legal system less receptive to medical malpractice lawsuits will not significantly affect the costs of medical care. He spoke with the freelance writer Anne Underwood." By Anne Underwood at The New York Times on August 13, 2009.
anonymous

The big letdown - 0 views

  • In short, alleviating disappointment means understanding what someone actually means when they say they’re disappointed. And for a politician, it means realizing that a certain amount of disillusionment is built into the system--the natural human optimism that allows people, election after election, to believe campaign promises also consigns them to repeated bouts of disappointment. Even if a voter manages to keep his expectations low in the fever of a campaign, research suggests that his conception of the counterfactual--what might have been if different decisions had been made, different policies pursued, or different politicians elected--grows increasingly positive in his memory, setting him up for disappointment.
  • Of the two sister emotions, regret is by far the more studied. Regret--or, more accurately, our desire to avoid future regret--is a major factor in how we decide what to do, what to say, and what to buy. A man might go on an adventurous vacation because he doesn’t want to regret missing the opportunity, or he might forgo ordering a fifth and then a sixth cocktail because he regretted it the last time he did it. Disappointment, on the other hand, usually drives us to do not much at all, making it a less fruitful emotion for marketers and professional motivators. Negative emotions like anger or fear give people energy and incentive to act; disappointment does the opposite. That difference is reflected in polling right now that shows a yawning enthusiasm gap between Republicans and Democrats, with the former angry, motivated, and eager to vote, and the latter listless and expected to stay home in the upcoming mid-term elections.
  • Gilovich sees several reasons for this, but one of them is that over time we steadily minimize the barriers to action that shape our decisions. Our instinct is to come to believe that the thing we didn’t do would have been less difficult than we found it at the time. ”We think it’s easy in retrospect to have learned a foreign language. Sure, we think, we could have found a half an hour a day to listen to tapes. But half an hour a day in actual life is hard to find,” says Gilovich.
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  • Taken together, this body of research underlines just how inevitable some degree of disappointment is, in electoral politics as in our personal lives. There’s ample research in the psychology literature that shows just how incorrigibly optimistic and trusting human beings can be, and how vulnerable, as a result, they are to campaign rhetoric like Obama’s in 2008. ”Don’t compare me to the Almighty,” Vice President Joe Biden likes to say, quoting Boston’s former mayor Kevin White, ”compare me to the alternative.” Even when they think they’re doing just that, though, people tend to romanticize the road not taken.
  •  
    "America is disappointed. The economic recovery, such as it is, has produced few jobs and little growth, the war in Afghanistan is going poorly, and Washington's political culture, which President Obama took office promising to reform, is as vitriolic and paralyzed as ever. As a supporter put it to Obama at a Sept. 20 town hall meeting, "I have been told that I voted for a man who said he was going to change things in a meaningful way for the middle class. I'm one of those people. And I'm waiting, sir. I'm waiting."" By Drake Bennett at The Boston Globe on October 10, 2010.
anonymous

The Real New Deal - 0 views

  • Money, an item not necessarily intrinsically desirable or usable but serving as a stand-in for the complex wants and valuations of untold individuals, is an unnatural idea that required centuries to take hold.
  • Endism, especially when attached to the sort of nouns we were once prone to capitalize, can become a bad habit when used as anything more than a literary device to call attention to events worthy of it. The Great Depression was certainly worthy of its capital letters; even if nothing exactly ended, plenty changed. But what? And with what, if any relevance for present circumstances?
    • anonymous
       
      Hat Tip to Robin Hanson at Overcoming Bias for pointing me toward this article. http://www.overcomingbias.com/2010/03/great-depression.html
    • anonymous
       
      And this 'endism' is quite present in the current anger over health-care reform. It's not merely a loss, it is elevated to historical travesty.
  • Whether we realize it or not, we are still reacting to those portrayals more than we are to the actions themselves. What really changed was the way the world’s elite thought of themselves and their institutions.
    • anonymous
       
      This falls under the category of "lies we tell ourselves." Of course, less cynically, we can call it the standard act of national mythmaking. It's akin to the fact that humans remember what they *need* to remember, not what was.
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  • In crude political form, this Whiggish inclination toward progress was encapsulated in the functionalist view retailed by Norman Angell around the turn of the last century, which held that countries that traded with each other would develop economic self-interests too intertwined to justify war.
    • anonymous
       
      This strikes me as something generally true, but not necessarily a truism. Libertarians will often postulate the "trade kills war" argument, without appreciating that it's not an iron-clad law or even - necessarily - the most likely outcome. It strikes me as more a naive, though admirable, conceit of what they *wish* as opposed to what IS.
  • If markets had come to play a more prominent part in the industrial West, it was not because markets had just been invented. It was because social and political systems had evolved in which powerful elites were willing to tolerate institutions that diffused economic power and weakened the state at the expense of private enterprise. This was the core meaning of liberalism in its original formulation.
  • The Crash of 1929, the subsequent economic slump and, particularly, the duration of the Depression took most contemporaries completely by surprise. Indeed, the uniquely severe catastrophe of the 1930s is so unusual that modern analysts should be cautious in drawing lessons from it.
    • anonymous
       
      One way in which we fundamentally misunderstand a time period is in projecting our current political definitions on a period in gross violation of the political norms of the time.
  • Conventional wisdom tends to treat President Hoover as a clueless advocate of laissez faire who refused to stimulate the economy in the dramatic downturn. Franklin Roosevelt, on the other hand, was the heroic leader who both saved the day and transformed the American economy through his promotion of the New Deal. Conventional wisdom is still very much with us.
  • Hoover did not advocate “do-nothing” policies.
  • Roosevelt’s interventions were neither as thorough nor as systematically revolutionary as they have often been portrayed.
  • Above all, FDR’s worst policies were animated by a desire to repress business, by distrust of competition and a general disdain for the market. Those were, of course, precisely the qualities that made his policies extremely popular. FDR’s economic policies scored mixed successes at best, but his political strategy succeeded by any measure long before U.S. entry into World War II, and subsequent generations have not ceased to conflate the former with the latter.
  • So thoroughly has the West taken for granted the triumph of the more abstract liberal nation-state that its denizens must remind themselves how fragile its origins were and how little emotional loyalty it has commanded.
  • Even in America, where visceral support for individualism and self-reliance remains strong, this has always been so. In good times, economic systems are supported by inertia and utilitarian compromise that appeal to the broad center. In hard times abstract convictions tend to melt away. The American preference for the free market is neither as common nor as “American” as many suppose.
    • anonymous
       
      But our identities are inventions and are mostly divorced from a close reading of history. As America nears a genuine crisis point, the current phenomenon of the "Tea Party" is going to be less relevant. It will eventually become "quaint" and irrelevant. At least, that is my hope (and current Generational prediction).
  • Seen as a reversion to older habits, the odd mix of regulation, make-work, intervention, protectionism, nationalism and (as in Germany and elsewhere) anti-Semitism that characterized the Western policy response to the Depression suddenly seems less like an incoherent flaying in all directions and more like elements of a uniform retrenchment in social relations.
    • anonymous
       
      Which is why the narratives don't stick on a closer read.
  • It seems odd that humans in their day-to-day interactions think of buying or selling as the most natural of activities, recreating markets unprompted in the most dismal of circumstances. Yet there is something about the ideology of a market system, or of any generally decentralized order, that seems inconceivable to most people.
  • Economists have a hard time dealing with nationalism.
    • anonymous
       
      Again: Nationalism - in its current form - is a modern social invention.
  • A severe economic crisis implicates the entire system of political economy, regardless of how narrow the source of that crisis may be. Thus those with long-simmering fears and resentments—as well as those with more venal or ideological motives—see crisis as an opportunity to strike out at the system.
  • Anti-market movements, whether pushed by Populists or Progressives in the United States or the various forms of socialism in Europe, took for granted that vigorous political action was the only way to impose order and bring social harmony to an unfettered market economy. But the specific remedies and the zeal with which reformers sought to repudiate the past belie ideological origins more than technocratic ones.
  • He had mastered the politics of trust.
  • Roosevelt deserves credit for largely resisting these ideological enthusiasms. On balance, he dealt with the crisis pragmatically and forthrightly.
  • If FDR had left out the high-flying rhetoric and only pursued an attenuated New Deal—namely the financial policies that economists now agree truly helped us out of the Depression—would he be as celebrated a figure as he is today? Not likely.
  • The end of World War II furnishes still more evidence that political images leave a wider trace in historical memory than actual policies.
  • Thanks to Truman we were once again moving in the direction of a competitive, open-access market economy. Had there been a lingering recession and a continuation of older, harmful regulations into the 1946–48 period, Truman, not his predecessor, would have been blamed. Yet Truman’s stellar reputation today owes nothing to his economic achievements, which most of those who today praise his foreign policy acumen know nothing about.
    • anonymous
       
      I'll raise my hand on this one. Even with my better-than-nothing knowledge of US history, I knew nothing about this.
    • anonymous
       
      They weren't in the stories I learned about.
  • In any event, we would do well to bear in mind how important, yet also how unnatural, the modern system of impersonal finance and trade really is. If we would preserve that system as a basis for our prosperity, we must recognize that many of the regulatory solutions we apply to our current crisis may themselves induce responses that can generate new crises. History suggests, too, that fears of the market and the political pressures it generates will wax and wane as crises deepen or ease. Patience and prudence are, therefore, the best watchwords for government amid the many trials and errors we will surely endure in the months, and perhaps years, ahead.
  • Indeed, many of his interventions—for example, his attempts to balance the budget by raising taxes in 1932, and strengthening support for the gold standard—worsened the economy for reasons orthodox theory would have predicted. On the other hand, Hoover initiated the Reconstruction Finance Corporation to support failed banks, to fund public works, subsidize state relief and otherwise engage in policies that presaged the widely praised interventions of the Roosevelt era.
  • Economic historians stress that it was in the realm of monetary and not fiscal policy that FDR had the most success.
    • anonymous
       
      I can't even tell you the difference between those two things. I would venture to guess that a *lot* of people with strong convictions about government intrusion can't either.
  • What is one to make of the widespread popularity of protectionism and high tariffs throughout the Western world? Nationalist policies of every stripe, whether in the form of cartelization of industry in the United States or of more widespread regulation and control in Europe, especially in Germany, were not natural accompaniments to any neutral, technocratic view of recovery.
  • large-scale systems based on anonymous exchange were a recent phenomenon.
    • anonymous
       
      We have a stubborn inability to understand that businesses are technologies like anything else we create. A chief conceit of neocons is the idea that our current economic system is somehow closer to a blank slate than those with more government power. Since it is our corporate system that is the "newish" thing, it puts supporters on the right in the uncomfortable position of being Progressives of at least one stripe.
  • The current Chair of the Council of Economic Advisors, Christina Romer, wrote in her widely cited article, “What Ended the Great Depression?” (1992), that “unusual fiscal policy contributed almost nothing to the recovery from the Great Depression.” The consensus view is that FDR’s policy success was the abandonment of the gold standard in 1933.
  • Harry Truman left office in 1953 a very unpopular man. Almost no one at the time gave him credit for overseeing a period of rapid recovery that was much broader and more impressive than anything that happened under Roosevelt’s tenure—and this at a time when most economists predicted a deep postwar recession.
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