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Javier E

(1) Whither China? Part III: Policy hubris and the end of infallibility - 0 views

  • China’s economy is in trouble because its authoritarian demons are catching up with it and paralyzing the private sector.
  • China’s economy is in trouble because its growth model exhausted itself and entrenched power structures make it hard to shift gear.
  • Both are very powerful explanations rooted in well-established social scientific models - institutional economics and Keynesian macro, respectively.
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  • The “authoritarian impasse” model focuses on property rights and the supposed inevitability that at some point an authoritarian regime will succumb to the temptation to abuse them unleashing a downward spiral into a condition Posen compares to that of Russia, Turkey or Venezuela.
  • In Pettis’s model, based on macroeconomic flows - investment, consumption, government spending - what ultimately sets the limit on growth is the rate at which the economy can productively absorb new physical assets. When that limit is reached, the investment-driven growth model becomes dysfunctional. This too provides a powerful way of understanding China’s current impasse.
  • What both these strong models also have in common is that neither has a very precise account of the particular recessionary dynamics that China is currently suffering or why they emerged when they did.
  • we need a more particular policy narrative to explain how China and Xi’s regime have ended up in the particular impasse they face in the summer of 2023
  • The key theme of that narrative is not authoritarianism, or fixation on growth, but overconfidence and hubris.
  • There is much to be said about the failure of Beijing to prepare adequately for Omicron, notably the failure to vaccinate adequately - an instance of the regime shrinking from coercion when it might have yielded benefits. The important points to make here are twofold:
  • First, it was the development of the virus over time that turned Zero Covid from a spectacular success in 2020 into an oppressive debacle two years later. It was the virus that mutated and not Xi’s regime.
  • Secondly, the seriousness of the blow to the Chinese economy in 2022 resulted from the coincidence of the desperate effort to uphold zero COVID with the high-risk effort to deflate the real estate bubble.
  • The current acute sense of crisis, which both Posen and Pettis claim as confirming their structural interpretation of China’s problems, in fact resulted not from deep authoritarianism so much as over-confidence and slowness to react to changing circumstances, and it resulted not so much from the relentless pursuit of growth as a bold decision to prioritize medium and long-term stability and security.
  • if we say that it is authoritarianism that explains clumsy policy on the part of Beijing since 2020, what counterfactual are we invoking? How many governments around the world - democratic, populist or authoritarian - actually have much to be proud of in their COVID response?
  • In light of the track-record of economic policy-makers in Japan, Europe and the US, faced with much smaller real estate booms, why would we jump to the conclusion that China’s main problem is its authoritarianism?
  • China’s current crisis cannot be understood unless we also allow for the role of overconfidence, risk-taking and, possibly, miscalculation on the part of a regime facing an unprecedented array of challenges.
Javier E

A Chess Champion's Warning About Ukraine and U.S. Democracy - The New York Times - 0 views

  • Kasparov’s latest gambit is promoting what he views as two essential, connected ideas: that Putin’s war in Ukraine is a war for democracy itself, and that Western democracies are in peril unless their citizens fight for democratic values at home.
  • “I grew up in the Soviet Union, so I experienced undemocratic rule,” Kasparov said. “And while I never thought America was even close to this kind of desperation, when you look at history, the real threat in democracy comes when you have polarization.”
  • With Russia’s war effort flagging in Ukraine, Kasparov senses “panic” among authoritarian leaders from North Korea to Venezuela, because, he said, they view Putin as a man with “almost mystical powers.”
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  • . The group also organized an open letter, signed by 52 dissidents from 28 countries, warning that “to win the global fight against authoritarianism, America must once again believe in and live up to its own values.”
  • Western leaders should push to end the conflict as soon as possible, Kasparov argues, by giving Ukraine the heavy weapons its leaders say they need.
  • Here in the United States, Kasparov said, “It also could be a great moment for us to revise our commitment to democracy,” adding, “Because, let’s be honest, there was complacency.”
  • Kasparov was feuding online with Elon Musk, the Tesla founder. On Monday, Musk floated a 280-character proposal to end the war in Ukraine that, to Kasparov, seemed too friendly to the Kremlin. He called Musk’s proposal “moral idiocy.”
  • Kasparov’s response to Americans of all stripes is that although their democracy may be teetering, it’s still a beacon of hope to millions around the world. And as the war in Ukraine shows, maintaining it requires constant vigilance.
  • “You have to be an active member of society,” he said. “You have to be engaged. That is the message.”
Javier E

America Is Growing Apart, Possibly for Good - The Atlantic - 0 views

  • Michael Podhorzer, a longtime political strategist for labor unions and the chair of the Analyst Institute
  • Podhorzer recently laid out a detailed case for thinking of the two blocs as fundamentally different nations uneasily sharing the same geographic space.
  • in truth, we have never been one nation. We are more like a federated republic of two nations: Blue Nation and Red Nation. This is not a metaphor; it is a geographic and historical reality.”
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  • the growing divisions between red and blue states represent a reversion to the lines of separation through much of the nation’s history.
  • “very similar, both geographically and culturally, to the divides between the Union and the Confederacy. And those dividing lines were largely set at the nation’s founding, when slave states and free states forged an uneasy alliance to become ‘one nation.’”
  • he’s warning that the pressure on the country’s fundamental cohesion is likely to continue ratcheting up in the 2020s
  • the “MAGA movement”—as the U.S. equivalent to the authoritarian parties in places such as Hungary and Venezuela. It is a multipronged, fundamentally antidemocratic movement that has built a solidifying base of institutional support through conservative media networks, evangelical churches, wealthy Republican donors, GOP elected officials, paramilitary white-nationalist groups, and a mass public following
  • Virginia has voted like a blue state at the presidential level, and Arizona and Georgia have moved from red to purple. With these three states shifted into those categories, the two “nations” are almost equal in eligible voting-age population, and the blue advantage in GDP roughly doubles, with the blue section contributing 48 percent and the red just 35 percent.)
  • This divergence itself creates enormous strain on the country’s cohesion, but more and more even that looks like only a way station
  • the underlying political question of the 2020s remains whether majority rule—and democracy as we’ve known it—can survive this offensive.
  • Podhorzer defines modern red and blue America as the states in which each party has usually held unified control of the governorship and state legislature in recent years.
  • By that yardstick, there are 25 red states, 17 blue states, and eight purple states
  • the red nation houses slightly more of the country’s eligible voting population (45 percent versus 39 percent), but the blue nation contributes more of the total U.S. gross national product: 46 percent versus 40 percent
  • it is determined to impose its policy and social vision on the entire country—with or without majority support
  • The hardening difference between red and blue, Podhorzer maintains, “empowers” the 10 purple states (if you include Arizona and Georgia) to “decide which of the two superpower nations’ values, Blue or Red, will prevail” in presidential and congressional elections
  • that leaves the country perpetually teetering on a knife’s edge: The combined vote margin for either party across those purple states has been no greater than two percentage points in any of the past three presidential elections
  • That’s a reversal from the middle decades of the 20th century, when the basic trend was toward greater convergence.
  • One element of that convergence came through what legal scholars call the “rights revolution.” That was the succession of actions from Congress and the Supreme Court, mostly beginning in the 1960s, that strengthened the floor of nationwide rights and reduced the ability of states to curtail those rights.
  • Key moments in that revolution included the passage of the Civil Rights and Voting Rights Acts and the Supreme Court decisions striking down state bans on contraception, interracial marriage, abortion, and, much later, prohibitions against same-sex intimate relations and marriage.)
  • Simultaneously, the regional differences were moderated by waves of national investment, including the New Deal spending on rural electrification, the Tennessee Valley Authority, agricultural price supports, and Social Security during the 1930s, and the Great Society programs that provided federal aid for K–12 schools and higher education, as well as Medicare and Medicaid.
  • The impact of these investments (as well as massive defense spending across both periods) on states that had historically spent little on public services and economic development helped steadily narrow the gap in per capita income between the states of the old Confederacy and the rest of the country from the 1930s until about 1980.
  • Since about 2008, Podhorzer calculates, the southern states at the heart of the red nation have again fallen further behind the blue nation in per capita income.
  • red states, as a group, are falling behind blue states on a broad range of economic and social outcomes—including economic productivity, family income, life expectancy, and “deaths of despair” from the opioid crisis and alcoholism.
  • other measures that show those places in a more favorable light
  • Housing is often more affordable in red states; partly for that reason, homelessness has become endemic in many big blue cities. Red-state taxes are generally lower than their blue counterparts. Many red states have experienced robust job growth
  • And red states across the Sun Belt rank among the nation’s fastest growing in population.
  • blue states are benefiting more as the nation transitions into a high-productivity, 21st-century information economy
  • red states (apart from their major metropolitan centers participating in that economy) are suffering as the powerhouse industries of the 20th century—agriculture, manufacturing, and fossil-fuel extraction—decline.
  • The gross domestic product per person and the median household income are now both more than 25 percent greater in the blue section than in the red,
  • The share of kids in poverty is more than 20 percent lower in the blue section than red, and the share of working households with incomes below the poverty line is nearly 40 percent lower.
  • Gun deaths are almost twice as high per capita in the red places as in the blue, as is the maternal mortality rate.
  • Per capita spending on elementary and secondary education is almost 50 percent higher in the blue states compared with red
  • All of the blue states have expanded access to Medicaid under the Affordable Care Act, while about 60 percent of the total red-nation population lives in states that have refused to do so.
  • All of the blue states have set a minimum wage higher than the federal level of $7.25, while only about one-third of the red-state residents live in places that have done so.
  • Right-to-work laws are common in the red states and nonexistent in the blue, with the result that the latter have a much higher share of unionized workers than the former
  • No state in the blue section has a law on the books banning abortion before fetal viability, while almost all of the red states are poised to restrict abortion rights
  • Almost all of the red states have also passed “stand your ground” laws backed by the National Rifle Association, which provide a legal defense for those who use weapons against a perceived threat, while none of the blue states have done so.
  • During the seven decades of legal Jim Crow segregation from the 1890s through the 1960s, the principal goal of the southern states at the core of red America was defensive: They worked tirelessly to prevent federal interference with state-sponsored segregation but did not seek to impose it on states outside the region.
  • Jim Crow segregation offers an important reference point for understanding how far red states might take this movement to roll back civil rights and liberties—not that they literally would seek to restore segregation, but that they are comfortable with “a time when states” had laws so “entirely different” that they created a form of domestic apartheid.
  • The flurry of socially conservative laws that red states have passed since 2021, on issues such as abortion; classroom discussions of race, gender, and sexual orientation; and LGBTQ rights, is widening this split. No Democratic-controlled state has passed any of those measures.
  • he documents a return to historical patterns from the Jim Crow era in which the dominant party (segregationist Democrats then, conservative Republicans now) has skewed the playing field to achieve a level of political dominance in the red nation far beyond its level of popular support
  • Undergirding that advantage, he argues, are laws that make registering or voting in many of the red states more difficult, and severe gerrymanders that have allowed Republicans to virtually lock in indefinite control of many state legislatures
  • how the United States will function with two sections that are moving so far apart.
  • History, in my view, offers two models
  • bedrock differences dating back to the country’s founding are resurfacing. And one crucial element of that, he argues, is the return of what he calls “one-party rule in the red nation.”
  • in the last years before the Civil War, the South’s political orientation was offensive: Through the courts (the 1857 Dred Scott decision) and in Congress (the Kansas-Nebraska Act in 1854), its principal aim was to authorize the expansion of slavery into more territories and states
  • Podhorzer, like Mason and Grumbach, believes that the MAGA movement’s long-term goal is to tilt the electoral rules in enough states to make winning Congress or the White House almost impossible for Democrats
  • Then, with support from the GOP-appointed majority on the Supreme Court, Republicans could impose red-state values and programs nationwide, even if most Americans oppose them. The “MAGA movement is not stopping at the borders of the states it already controls,” Podhorzer writes. “It seeks to conquer as much territory as possible by any means possible.”
  • The Trump model, in other words, is more the South in 1850 than the South in 1950, more John Calhoun than Richard Russell
  • it does mean that the 2020s may bring the greatest threats to the country’s basic stability since those dark and tumultuous years.
Javier E

Russian Women Flock to Argentina to Give Birth - WSJ - 0 views

  • With the temporary residency, parents can begin the process to gain citizenship, migration authorities say. An Argentine passport can be obtained in as little as two years, immigration lawyers and migration officials say, and gives the holder the ability to travel visa-free to Europe, which Russians can’t do.
  • Ms. Davydova and other new arrivals say they feel welcomed. Argentina has historically been a destination for emigrants from Europe and more recently from Bolivia, Paraguay and Venezuela.
  • On Feb. 9, 33 young Russians in advanced stages of pregnancy arrived on that flight, Ms. Carignano told a local radio station. Two days later, another 83 passengers, 16 of them pregnant Russian women, arrived via the same route, she said.
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  • Many take the daily Ethiopian Airlines flight that originates in Moscow, stopping in Addis Ababa and São Paulo before landing in Buenos Aires—considered a relatively inexpensive route at around $2,500. They usually buy a round-trip ticket but don’t use the return.
  • The Buenos Aires Health Ministry said at its busiest public hospital, the Fernández Hospital, 85 of the 985 births last year, or 8.6%, were to Russian women. This year through Feb. 14, 38 of the 168 births, or 22.6%, have been babies born to Russian women. At the private Finochietto Hospital, doctors delivered 50 Russian babies in December of the total 180 births recorded, said Dr. Guido Manrique, chief of obstetrics.
Javier E

The future belongs to Right-wing progressives - UnHerd - 0 views

  • the only subset of Right-wing thought in the West today that doesn’t feel moribund is actively anti-conservative. The liveliest corner of the Anglophone Right is scornful of cultural conservatism and nostalgia, instead combining an optimistic view of technology with a qualified embrace of global migration and an uncompromising approach to public order.
  • in much the same way as the Western Left seized on Venezuela under Chávez as a totemic worked example of this vision, so too the radical Right today has its template for the future: El Salvador under Nayib Bukele
  • These moves have drastically reduced the murder rate in a previously notoriously dangerous country
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  • Since coming to power in 2019, Bukele has declared a still-to-be-rescinded state of exception, suspended the Salvadorean constitution, and locked up some 70,000 alleged gang members without due process.
  • This trait also makes him a touchstone for the Right-wing movement that I predict will replace “conservatism” in the 21st century. This outlook owes more to the Italian Futurist Filippo Marinetti than conservatives of the G.K. Chesterton variety
  • yet, Bukele’s strongman tactics have made him wildly popular with Salvadoreans, who doubtless enjoy a reported 70% reduction in the country’s previously extremely high murder rate. They have also made Bukele a rock star for the online Right. This group, fond of complaining about spineless leaders, fraying Western law and order, and the bleeding-away of political agency into international institutions and NGOs, regards the spectacle of a strongman leader with good social media game as something like a fantasy made flesh.
  • Arguably, it’s as much his embrace of technology that accords Bukele the mantle of poster-boy for a futuristic Right. Whether in his extremely online presence, his (admittedly not completely successful) embrace of Bitcoin as legal tender, or the high-tech, recently rebuilt National Library, funded by Beijing and serving more as showcase for futuristic technologies than as reading-room
  • Western critics, though, point to allegations that he has corrupted institutions by packing them with allies, not to mention, according to Amnesty International, “concealed and distorted public information, backed actions to undermine civic space, militarised public security, and used mass arrests and imprisonment as the sole strategies for counteracting violence in the country”.
  • is perhaps most visibly embodied in American technologists such as Elon Musk, Mark Andreessen or Peter Thiel. As a worldview, it is broadly pro-capitalist, enthusiastically pro-technology and unabashedly hierarchical, as well as sometimes also scornful of Christian-inflected concern for the weak.
  • We might call it, rudely, “space fascism”, though N.S. Lyons’s formulation “Right-wing progressivism” is probably more accurate. Among its adherents, high-tech authoritarianism is a feature, not a bug, and egalitarianism is for fools. Thinkers such as Curtis Yarvin propose an explicitly neo-monarchical model for governance; Thiel has declared that: “I no longer believe freedom and democracy are compatible.”
  • El Salvador is thus the most legible real-world instance of something like a Right-wing progressive programme in practice. And along with the tech enthusiasm and public-order toughness, the third distinctive feature of this programme can be gleaned: a desire not to end international migration, but to restrict it to elites.
  • For Right-wing progressives, polities are not necessarily premised on ethnic or cultural homogeneity — at least not for elites. Rather, this is a vision of statehood less based on affinity, history or even ethnicity, and more on a kind of opt-in, utility-maximisation model
  • As a worldview, it’s jarring to cultural conservatives, who generally value thick ties of shared history and affinity
  • Right-wing progressives generally accord greater political value to gifted, high-productivity foreigners than any slow-witted, unproductive coethnic: those within Right-wing progressive circles propose, and in some cases are already working on, opt-in startup cities and “network states” that would be, by definition, highly selective about membership.
  • As for those still wedded to the 20th-century idea that being Right-wing necessarily means ethnicity-based nationalism, they are likely to find this outlook bewildering.
  • Yet it’s still more heretical to egalitarian progressives, for whom making migration and belonging an elite privilege offends every premise of inclusion and social justice.
  • Right-wing progressives, by contrast, propose to learn from the immigration policies of polities such as Singapore and the Gulf states, and avert the political challenges posed by ethnic voting blocs by imposing tiered citizenship for low-skilled migrants, while courting the wealth and productivity of international elites
  • Bukele’s proposal suggests a pragmatic two-tier Right-wing progressive migration policy that courts rich, productive, geographically rootless international “Anywheres” of the kind long understood to have more affinity with one another than with less wealthy and more rooted “Somewheres” — but to do so while explicitly protecting cultural homogeneity on behalf of the less-mobile masses.
  • There are larger structural reasons for such pragmatism, not least that population growth is slowing or going into reverse across most of the planet.
  • At the same time, impelled by easier transportation, climate change, social-media promises of better lives elsewhere, and countless other reasons, people everywhere are on the move. As such, like a global game of musical chairs, a battle is now on for who ends up where, once the music stops — and on what terms.
  • How do you choose who is invited? And how do you keep unwanted demographics out? Within an egalitarian progressive framework, these are simply not questions that one may ask
  • Within the older, cultural conservative framework, meanwhile, all or most migration is viewed with suspicion.
  • The Right-wing progressive framework, by contrast, is upbeat about migration — provided it’s as discerning as possible, ideally granting rights only to elite incomers and filtering others aggressively by demographics, for example an assessment of the statistical likeliho
  • od of committing crime or making a net economic contribution.
  • In Britain, meanwhile, whatever happens to the Tories, I suspect we’ll see more of the Right-wing progressives. I find many of their policies unnerving, especially on the biotech side; but theirs is a political subculture with optimism and a story about the future, two traits that go a long way in politics.
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