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Opinion | Putin, in his feral cunning, is Bismarckian, with a dash of Lord Nelson - The... - 0 views

  • Vladimir Putin is emulating Bismarck, who used three quickly decisive wars — against Denmark in 1864, Austria in 1866 and France in 1870 — to create a unified modern Germany from what had been a loose confederation of states
  • By acquiring land, some German-speaking populations and an aura of national vitality, Bismarck’s wars of national creation stoked cohesion.
  • If Putin succeeds in reducing Ukraine to satellite status, and in inducing NATO to restrict its membership and operations to parameters he negotiates, he might, like Bismarck, consider other wars — actual, hybrid, cyber. The Baltic nations — Latvia, Lithuania, Estonia, all NATO nations — should worry.
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  • In Putin’s plan to dismember Ukraine by embracing self-determination for ethnic Russian separatists, he, like Hitler in 1938, is exploiting careless rhetoric that ignores the fact that ethnicities do not tidily coincide with national boundaries.
  • Lansing, who called Wilson “a phrase-maker par excellence,” warned that “certain phrases” of Wilson’s “have not been thought out.” The “undigested” phrase “self-determination” is “simply loaded with dynamite.” Nevertheless, President Franklin D. Roosevelt and Churchill in their Atlantic Charter of August 1941 affirmed the right of self-determination for all “peoples,” which the United Nations Charter also affirms.
  • This phrase can be used to sanitize the dismemberment of Ukraine — and some other nations (see above: the Baltics). And perhaps can reduce nations supposedly supporting Ukraine to paralytic dithering about whether sanctions, or which sanctions, are an appropriate response to an aggression wielding a Wilsonian concept.
  • Much of Putin’s geopolitics consists of doing whatever opposes U.S. policy. Call this the Nelson Rule. Before the Battle of Trafalgar, Lord Nelson, meeting with some of his officers, reportedly picked up a fire poker and said, “It matters not at all in what way I lay this poker on the floor. But if Bonaparte should say it must be placed in this direction, we must instantly insist upon its being laid in some other one.” Regarding the United States, Putin is Nelsonian.
  • raw power lubricated by audacious lying is Bismarckian. In July 1870, the French ambassador to Prussia asked King William of Prussia for certain assurances, which the king declined to give. Bismarck edited a telegram describing this conversation to make the episode resemble an exchange of insults. Passions boiled in both countries, and France declared war, which Bismarck wanted because he correctly thought war would complete the welding of the German states into a muscular nation.
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Alexander Gabuev writes from Moscow on why Vladimir Putin and his entourage want war | ... - 0 views

  • What actually drives the Kremlin are the tough ideas and interests of a small group of longtime lieutenants to President Vladimir Putin, as well as those of the Russian leader himself. Emboldened by perceptions of the West’s terminal decline, no one in this group loses much sleep about the prospect of an open-ended confrontation with America and Europe
  • In fact, the core members of this group would all be among the main beneficiaries of a deeper schism.
  • Consider Mr Putin’s war cabinet, which is the locus of most decision-making
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  • Their average age is 68 years old and they have a lot in common. The collapse of the Soviet Union, which Mr Putin famously described as the greatest geopolitical catastrophe of the 20th century, was the defining episode of their adult lives
  • Four out of five have a KGB background, with three, including the president himself, coming from the ranks of counterintelligence. It is these hardened men, not polished diplomats like Foreign Minister Sergey Lavrov, who run the country’s foreign policy.
  • In recent years members of this group have become very vocal. Messrs Patrushev and Naryshkin frequently give lengthy interviews articulating their views on global developments and Russia’s international role.
  • According to them, the American-led order is in deep crisis thanks to the failure of Western democracy and internal conflicts spurred by the promotion of tolerance, multiculturalism and respect for the rights of minorities. A new multipolar order is taking shape that reflects an unstoppable shift in power to authoritarian regimes that support traditional values.
  • Given the state of affairs in Western countries, the pair contend, it's only natural that they seek to contain Russia and to install pro-Western regimes in former Soviet republics. The West’s ultimate goal of a colour revolution in Russia itself would lead to the country’s conclusive collapse.
  • Washington sees unfinished business in Russia’s persistence and success, according to Mr Putin’s entourage. As America’s power wanes, its methods are becoming more aggressive. This is why the West cannot be trusted
  • The best way to ensure the safety of Russia’s existing political regime and to advance its national interests is to keep America off balance.
  • Seen this way, Ukraine is the central battleground of the struggle. The stakes could not be higher. Should Moscow allow that country to be fully absorbed into a western sphere of influence, Russia’s endurance as a great power will itself be under threat
  • The fact that the new elite in Kyiv glorifies the Ukrainian nationalists of the 20th century and thumb their noses at Moscow is a huge personal affront.
  • Messrs Patrushev, Bortnikov and Naryshkin all find themselves on the US Treasury’s blacklist already, along with many other members of Mr Putin’s inner circle. There is no way back for them to the West’s creature comforts. They are destined to end their lives in Fortress Russia, with their assets and their relatives alongside them.
  • As for sanctions by sector, including those that President Joe Biden’s team plans to impose should Russia invade Ukraine, these may end up largely strengthening the hard men’s grip on the national economy
  • Import substitution efforts have generated large flows of budget funds that are controlled by the coterie and their proxies, including through Rostec. The massive state conglomerate is run by a friend of Mr Putin’s from his KGB days in East Germany, Sergey Chemezov
  • In a similar vein, a ban on food imports from countries that have sanctioned Russia has led to spectacular growth in Russian agribusiness. The sector is overseen by Mr Patrushev’s elder son Dmitry, who is Mr Putin’s agriculture minister.
  • further sanctions wouldn’t just fail to hurt Mr Putin’s war cabinet, they would secure its members' place as the top beneficiaries of Russia’s deepening economic autarky.
  • The same logic is true of domestic politics: as the country descends into a near-permanent state of siege, the security services will be the most important pillar of the regime. That further cements the hard men’s grip on the country
  • Russia’s interests are increasingly becoming conflated with the personal interests of the people at the very top of the system.
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Ukraine Crisis Kicks Off New Superpower Struggle Among U.S., Russia and China - WSJ - 0 views

  • Russia’s audacious military mobilization in and around Ukraine is the first major skirmish of a new order in international politics, with three major powers jostling for position in ways that threaten America’s primacy.
  • Russia and China have built a thriving partnership based in part on a shared interest in diminishing U.S. power. Unlike the Sino-Soviet bloc of the 1950s, Russia is a critical gas supplier to Europe, while China isn’t an impoverished, war-ravaged partner but the world’s manufacturing powerhouse with an expanding military.
  • To do this, Mr. Putin shifted military units from Russia’s border with China, showing confidence in his relations with Beijing. The two powers, in effect, are coordinating to reshape the global order to their advantage, though their ties stop short of a formal alliance.
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  • Russian President Vladimir Putin is demanding that the West rewrite the post-Cold War security arrangements for Europe and demonstrated that Russia has the military capability to impose its will despite Western objections and economic sanctions.
  • Even with annual defense budgets that soared over $700 billion, coping with an urgent Russian-generated crisis while preparing for a Chinese threat whose peak is still years away presents an enormous challenge for the Pentagon.
  • “And we’re seeing that while Beijing doesn’t really like Putin’s tactics, they’re willing to band together as authoritarian states against the Western democracies,” Ms. Flournoy added. “We are going to see more and more of that in the future.”
  • China’s Communist Party leadership also saw pro-democracy protest movements in former Soviet republics as U.S.-engineered plots that could ultimately be used against Beijing.
  • For much of the past decade, the U.S. security establishment began taking note of what the Pentagon in 2015 called the “re-emergence of great power competition” and shifted from its emphasis of counterterrorism operations in the Middle East and Southwest Asia.
  • Defense Secretary Lloyd Austin has repeatedly cast China as the “pacing challenge” while Russia was seen as the lesser longer-term danger.
  • “We all thought we were looking at a Europe whole, free and at peace indefinitely,” said Michele Flournoy, who served as the Pentagon’s top policy official during the Obama administration. “We knew that Russia would conduct gray zone operations and that Putin would use his KGB playbook to create instability on his periphery. But a wholesale invasion of a sovereign country to reorient its government is a different moment.”
  • A recent poll by the European Council on Foreign Relations noted most Europeans see the Ukraine crisis as a broader threat to Europe. Some current and former officials, however, worry that the alliance’s solidarity could fray in the years ahead as it debates the need for greater military spending and wrestles whether its military ties with Georgia might stir new confrontations with Moscow.
  • The era of nuclear reductions may come to an end as the U.S. military establishment argues for a large enough nuclear arsenal to deter both Russia’s formidable nuclear weaponry and China’s rapidly growing nuclear forces, which aren’t limited by any arms-control agreement.
  • “The United States is going to have to get used again to operating in multiple theaters simultaneously—not just militarily, but in terms of psychology and foreign-policy making,”
  • Already, debates are emerging among U.S. defense experts on whether the Pentagon should give equal weight to the twin challenges from Beijing and Moscow or focus more on the Pacific.
  • Should the West impose crippling sanctions on Russian banks and major companies, Moscow is likely to become more reliant on Beijing, which has issued a digital currency and is building a payments system separate from the West’s.
  • “It is already ending the amnesia about the importance of energy security,” said Daniel Yergin, vice chairman of research firm IHS Markit. “It means a new emphasis on diversification of energy sources for Europe and a new look at U.S. domestic and international energy policies.”
  • Advocates of using energy as a geopolitical tool say Washington should promote investment in U.S. oil and natural gas and approve new LNG export terminals and pipelines in the United States.
  • The 1997 NATO-Russia Founding Act precludes the alliance from permanently stationing additional substantial combat forces on the territory of its new Eastern and Central European members, but could now be repealed.
  • ”The United States is particularly at risk of being overwhelmed should its military be forced to fight on two or more fronts simultaneously,” said a Congressionally mandated study of the Pentagon’s strategy that was issued in 2018
  • the Alphen Group by former officials and other experts urges that European members of the alliance and Canada provide for 50% of NATO’s minimum military requirements by 2030 so the U.S. can focus more on deterring China.
  • “Everybody’s unified right now and outraged about what the Russians are doing,” said Alexander Vershbow, a former U.S. ambassador to NATO who also served as the alliance’s deputy secretary-general from 2012 to 2016. “But when we get down to making longer-term commitments to strengthen NATO’s defense posture and potentially revisit nuclear issues, it could become very divisive.”
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Ukraine War and U.S. Politics Complicate Climate Change Fight - The New York Times - 0 views

  • Energy experts said that Mr. Biden missed an opportunity to connect the war in Ukraine to the need to more swiftly sever an economic reliance on fossil fuels. “The president did not articulate the long-term opportunity for the U.S. to lead the world in breaking free of the geopolitical nightmare that is oil dependency,” said Paul Bledsoe, a strategic adviser to the Progressive Policy Institute, a Washington-based think tank.
  • In exposing the enormous leverage that Russia has enjoyed with its energy exports, the Ukraine conflict is forcing European leaders to make some urgent choices: Should it build new fossil fuel infrastructure so that it can replace Russian fuel with liquefied natural gas from elsewhere, chiefly the United States? Or should it shift away from fossil fuels faster?
  • A draft of the report, reviewed by The New York Times, suggests that the new strategy will propose speeding up energy efficiency measures and renewable energy installations. It views imports of liquefied natural gas, or L.N.G., from the United States and elsewhere as a short term measure to offset Russian piped gas.
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  • Analysts have said European countries can quickly reduce gas dependence with energy efficiency measures and ramping up renewable energy investments, which are already in line with Europe’s ambition to stop pumping additional greenhouse gases into the atmosphere by midcentury
  • The conflict in Ukraine could fast-track some of that. It could also lead to what Lisa Fischer, who follows energy policy at E3G, a research group, called “a tectonic shift” — using renewables, rather than ample gas storage, to achieve energy security.
  • The President’s centerpiece legislative agenda, which he had called the Build Back Better act, is dead. Democrats still hope to pass approximately $500 billion of clean energy tax incentives that had been part of the package, but opportunities to do so are waning
  • The United States, for its part, has ramped up exports of L.N.G. to Europe to counter the decline in Russian piped gas. By the end of this year, the United States is poised to have the world’s largest L.N.G. export capacity.
  • White House officials said Mr. Biden wove climate change and clean energy throughout his speech. He noted that Ford and GM are investing billions of dollars to build electric vehicles, creating millions of manufacturing jobs in the United States. He also noted that funding from the infrastructure package will build a national network of 500,000 electric vehicle charging stations.
  • “Energy is a key weapon within this fight, and if there were far less dependency on gas there would be a different set of plays.”
  • If that investment does not come through and the Supreme Court also restricts the administration’s ability to regulate emission, Mr. Biden’s goal of cutting United States emissions roughly in half compared with 2005 levels could be essentially unattainable.
  • Even if climate wasn’t the stated focus of Mr. Biden’s Tuesday address, administration officials said that Russia’s war against Ukraine has not pushed climate change off the agenda. They noted that Mr. Biden has made climate change an emphasis in virtually every federal agency, and has moved ahead with major clean energy deployments including a record-breaking offshore wind auction last week that brought in more than $4 billion.
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China under pressure, a debate | Financial Times - 0 views

  • Despite the $300bn mega-bankruptcy of Evergrande, the risk of an immediate 2008-style crisis in China is slight.
  • let us linger over the significance of this point. What China is doing is, after all, staggering. By means of its “three red lines” credit policy, it is stopping in its tracks a gigantic real estate boom. China’s real estate sector, created from scratch since the reforms of 1998, is currently valued at $55tn. That is the most rapid accumulation of wealth in history. It is the financial reflection of the surge in China’s urban population by more than 480mn in a matter of decades.
  • Throughout the history of modern capitalism real estate booms have been associated with credit creation and, as the work of Òscar Jordà, Moritz Schularick and Alan M. Taylor has shown, with major financial crises.
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  • if we are agreed that Beijing looks set to stop the largest property boom in history without unleashing a systemic financial crisis, it is doing something truly remarkable. It is setting a new standard in economic policy.
  • Is this perhaps what policy looks like if it actually takes financial stability seriously? And if we look in the mirror, why aren’t we applauding more loudly?
  • Add to real estate the other domestic factor roiling the Chinese financial markets: Beijing’s remarkable humbling of China’s platform businesses, the second-largest cluster of big tech in the world. That too is without equivalent anywhere else.
  • Beijing’s aim is to ensure that gambling on big tech no longer produces monopolistic rents. Again, as a long-term policy aim, can one really disagree with that?
  • we have two dramatic and deliberate policy-induced shocks of the type for which there is no precedent in the West. Both inflict short-term pain with a view to longer-term social, economic and financial stability.
  • Ultimately political economy determines the conditions for long-run growth. So if you had to bet on a regime, which might actually have what it takes to break a political economy impasse, to humble vested interests and make a “big play” on structural change, which would it be? The United States, the EU or Xi’s China?
  • Beijing’s challenge right now is to manage the fall out from the two most dramatic development policies the world has ever seen, the one-child policy and China’s urbanisation, plus the historic challenge of big tech — less a problem specific to China than the local manifestation of what Shoshana Zuboff calls “surveillance capitalism”.
  • no, Xi’s regime has not yet presented a fully convincing substitute plan. But, as Michael Pettis has forcefully argued, China has options. There is an entire range of policies that Beijing could put in place to substitute for the debt-fuelled infrastructure and housing boom.
  • First and foremost China needs a welfare state befitting of its economic development.
  • China needs to spend heavily on renewable energy and power distribution to break its dependence on coal. If it needs more housing, it should be affordable. All of this would generate more balanced growth. 5 per cent? Perhaps not, but certainly healthier and more sustainable.
  • If it has not so far pursued an alternative growth model in a more determined fashion, some of the blame no doubt falls on the prejudices of the Beijing policy elite. But even more significant are surely the entrenched interests of the infrastructure-construction-local government-credit machine, in other words the kind of political economy factors that generally inhibit the implementation of good policy.
  • The problem is only too familiar in the West. In Europe and the US too, such interest group combinations hobble the search for new growth models. In the United States they put in doubt the possibility of the energy transition, the possibility of providing a healthcare system that is fit for purpose and any initiative on trade policy that involves widening market access.
  • demography is normally treated as a natural parameter for economic activity. But in China’s case the astonishing fact is that the sudden ageing of its workforce is also a policy-induced challenge. It is a legacy of the one-child policy — the most gigantic and coercive intervention in human reproduction ever undertaken.
  • On balance, if you want to be part of history-making economic transformation, China is still the place to be. But it is undeniably shifting gear. And thanks to developments both inside and outside the country, investors will have to reckon with a much more complex picture of opportunity and risk. You are going to need to pick smart and follow the politics and geopolitics closely.
  • If on the other hand you want to invest in the green energy transition — the one big vision of economic development that the world has come up with right now — you simply have to have exposure to China, whether directly or indirectly by way of suppliers to China’s green energy sector. China is where the grand battle over the future of the climate is going to be fought. It will be a huge driver of innovation, capital accumulation and profit, the influence of which will be felt around the world.
  • it is one key area that both the Biden administration and the EU would like to “silo off” from other areas of conflict with China.
  • I worry that we may be too focused on the medium-term. Given the news out of Hong Kong and mainland China, Covid may yet come back to bite us.
  • Here too China is boxed in by its own success. It has successfully pursued a no-Covid policy, but due to the failing of the rest of the world, it has been left to do so in “one country”.
  • Until China finds some way to contain the risks, this is a story to watch. A dramatic Omicron surge across China would upend the entire narrative of the last two years, which is framed by Beijing success in containing the first wave.
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Opinion | We're in a Fossil Fuel War. Biden Should Say So. - The New York Times - 0 views

  • Russia’s invasion of Ukraine is a war enabled and exacerbated by the world’s insatiable appetite for fossil fuels.
  • Russia is a petrostate — its economy and global influence are heavily reliant on its vast reserves of oil and natural gas — and Vladimir Putin its petromonarch, another in a line of unsavory characters whom liberal democracies keep doing business with because they’ve got something we can’t live without.
  • The way out of this bind would also appear obvious and urgent. By accelerating our transition to cheap and abundant renewable fuels, we can address two grave threats to the planet at once: the climate-warming, air-polluting menace of hydrocarbons and the dictators who rule their supply.
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  • yet American politicians on the left sure seem incapable of drawing out this connection
  • In his State of the Union address shortly after Russia’s invasion, President Biden whiffed on a major opportunity to revive his stalled climate change agenda by underlining the geopolitical dangers of fossil fuels. His references to climate change — what he has previously called an “existential threat” to the planet — were buried under, rather than connected to, his comments about the war.
  • pundits on the right have had a field day with the notion that Russia’s invasion somehow points up the folly of focusing on climate change. The Wall Street Journal’s editorial board blamed “the Biden Administration’s obsession with climate” for making “the U.S. and Europe vulnerable to Mr. Putin’s energy blackmail” and wrote that “the climate lobby has made Mr. Putin more powerful.”
  • This could have been a moment for moral clarity on the dangers of fossil fuels — but so far, Democrats have fumbled that message.
  • “This narrative has not been out there — that this war is why we need to get off of fossil fuels,”
  • “More groups need to be connecting the dots, making the case that true energy independence is about running on sunshine, because sunshine is free and abundant and cannot be controlled by dictators.
  • such a message is likely to resonate with people. A study she and a co-author published online in 2017 examined the political factors that led to clean energy policies. “What we found was, overwhelmingly, these policies were passed during energy crises,”
  • the Democrats have yet to aggressively make the case for their proposals in the new context of war — to point out that climate policy is not unrelated to foreign policy, and that freeing ourselves from other people’s fuels is the best long-term solution to skyrocketing energy prices.
  • the ways in which fossil fuels make energy prices far more volatile and put us at the behest of powers and leaders that can act in ways that are dangerous and unjust” has rarely been more obvious.
  • “I started to think about the parallels between climate change and this war and it’s clear that the roots of both these threats to humanity are found in fossil fuels,” Krakovska said in the interview. “Burning oil, gas and coal is causing warming and impacts we need to adapt to
  • And Russia sells these resources and uses the money to buy weapons. Other countries are dependent upon these fossil fuels; they don’t make themselves free of them. This is a fossil fuel war. It’s clear we cannot continue to live this way; it will destroy our civilization.”
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Fiscal crisis nears as McCarthy takes debt ceiling plan to Wall Street - The Washington... - 0 views

  • “It will be financial chaos,” predicted Mark Zandi, the chief economist at Moody’s Analytics, when asked about a potential brush with default. “Our fiscal problems will be meaningfully worse. … Our geopolitical standing in the world will be undermined.”
  • Womack and other Republicans acknowledged that the “real question” is if their own party can shore up the 218 votes needed in the House to pass a bill. With tensions simmering among the GOP’s far-right and moderate ranks — and only four votes to spare in a narrow majority — Republicans said they need to show progress if they hope to put new pressure on Democrats.
  • More than a decade later, some Republicans in Washington acknowledged that it may well take a more severe economic disruption just to force a resolution to the country’s fiscal standoff.“You can’t rule that out,” said Douglas Holtz-Eakin, president of the American Action Forum, a conservative advocacy group, as he echoed the need for drastic action to reduce the federal debt. “Both sides are dug in. They’ve shown no signs of moving. Something has to change the landscape to incentivize the White House and Congress to move.”
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India Is Passing China in Population. Can Its Economy Ever Do the Same? - The New York ... - 0 views

  • The two nations share several historical parallels. The last time they traded places in population, in the 18th century or earlier, the Mughals ruled India and the Qing dynasty was expanding the borders of China; between them they were perhaps the richest empires that had ever existed
  • But as European powers went on to colonize most of the planet and then industrialized at home, the people of India and China became among the world’s poorest.
  • As recently as 1990, the two countries were still on essentially the same footing, with a roughly equal economic output per capita. Since then, China has shaken the world by creating more wealth than any other country in history. While India, too, has picked itself back up in the three decades since it liberalized its economy, it remains well behind in many of the most basic scales.
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  • Today, China’s economy is roughly five times the size of India’s. The average citizen of China has an economic output of almost $13,000 a year, while the average Indian’s is less than $2,500
  • In human-development indicators, the contrast is even sharper, with infant mortality rates much higher in India, life expectancy lower and access to sanitation less prevalent.
  • The divergence, analysts say, comes down largely to China’s central consolidation of policy power, an earlier start in opening up its economy to market forces starting in the late 1970s, and its single-minded focus on export-led growth.
  • China took the first-mover advantage and then compounded its dominance as it pursued its plans relentlessly.
  • India started opening its quasi-socialist economy nearly a decade later. Its approach remained piecemeal, constrained by tricky coalition politics and the competing interests of industrialists, unions, farmers and factions across its social spectrum.
  • “There is that element where China is a natural role model — not for its politics, but for the sheer efficiency,”
  • The world now has a radically different power structure than it did in 1990. China has already made itself the world’s factory, all but closing off any path India could take to competitive dominance in export-driven manufacturing.
  • A “Make in India” campaign, inaugurated by Mr. Modi in 2014, has been stuttering ever since. Wage costs are lower in India than in China, but much of the work force is poorly educated, and the country has struggled to attract private investment with its restrictive labor laws and other impediments to business, including lingering protectionism.
  • service-sector growth can go only so far in reaping India’s promise of a demographic dividend, or blunt the peril of an unemployment crisis. Hundreds of millions of people can’t find jobs or are underemployed in work that pays too little.
  • the employment entrance exams at government agencies. These jobs are still coveted as private sector work remains limited and less stable.
  • 650,000 students will apply for just 600 or 700 jobs in the national civil service this year.
  • The civil service is a tiny part of the work force, but it is prestigious — in part because it comes with job security for life. Most applicants spend years, and a big chunk of their family’s savings, and still fail to make the cut.
  • “Here there is no enterprise, no companies,” Mr. Kumar said. For any young person, “the question comes, ‘What next? What can I do?’”
  • The lessons Mr. Modi is taking from China are most apparent in his push for infrastructure development, investing heavily in highways, railways and airports to improve supply chains and connectivity.
  • India has quintupled its annual spending on roads and railways during Mr. Modi’s nine years in power
  • As Mr. Modi has boxed in opponents, cowed the press and overwhelmed independent elements of civil society, his government has lashed out at expressions of concern from abroad as evidence of a colonial plot to undermine India or a lack of understanding of India’s “civilizational” approach — both elements that diplomats had long heard in China’s own defensiveness.
  • All the while, the increasing militancy of his Hindu nationalist supporters, as arms of the state hang back and give perpetrators a free pass, exacerbates India’s religious fault lines and clashes that threaten to disrupt India’s rise.
  • Even as India tries to align its growing technological and economic capacity to capitalize on the Western tensions with China, it is determined to stick to its neutrality and maintain a balancing act between the United States and Russia. There is also the question of whether the West’s shift from China, the linchpin of the global economy, is a temporary recalibration or a more fundamental one.
  • “China took advantage of a favorable geopolitical moment to really transform itself by having access to technology, to capital, to markets led by the United States. It took advantage of that to build itself up,” Mr. Saran said. “This could be that moment for India.”
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German living standards plummeted after Russia invaded Ukraine, say economists | German... - 0 views

  • The energy shock caused by Russia’s invasion of Ukraine has led to the biggest collapse in German living standards since the second world war and a downturn in economic output comparable to the 2008 financial crisis, a stark assessment has found.
  • real wages in the country slumped further in 2022 than in any year since 1950.
  • A failure to protect German industry from the energy price spike may turn the 2020s into “a lost decade for Germany” and further fuel the rise of the populist far-right Alternative für De
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  • “In an age of conflict, climate and geopolitical crisis the rise of the AfD is a wake-up call. The collapse in living standards experienced by Germans is unprecedented since world war two. While it is true that the factors that fuelled the rise of the AfD go beyond economics, it is also impossible to ignore how this unprecedented slump in German living went hand-in-hand with the rising popularity of the far right.”
  • Europe’s largest economy is still reeling from the February 2022 full-scale invasion of Ukraine. The International Monetary Fund forecast for German growth in 2024 and 2025 is that it will be lower than any comparable advanced economy save Argentina.
  • Weber and Krebs highlighted that two distinct surges in support for the AfD in the summers of 2022 and 2023 coincide with periods of uncertainty in the German government about how to address the impact of energy price shocks on living standards.
  • Once the damage to output caused by the Covid crisis is included, actual output at the end of 2023 was about 7% below the pre-crisis trend. Real wages were 10% below their pre-crisis trend in 2023.
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Opinion | The 100-Year Extinction Panic Is Back, Right on Schedule - The New York Times - 0 views

  • The literary scholar Paul Saint-Amour has described the expectation of apocalypse — the sense that all history’s catastrophes and geopolitical traumas are leading us to “the prospect of an even more devastating futurity” — as the quintessential modern attitude. It’s visible everywhere in what has come to be known as the polycrisis.
  • Climate anxiety, of the sort expressed by that student, is driving new fields in psychology, experimental therapies and debates about what a recent New Yorker article called “the morality of having kids in a burning, drowning world.”
  • The conviction that the human species could be on its way out, extinguished by our own selfishness and violence, may well be the last bipartisan impulse.
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  • a major extinction panic happened 100 years ago, and the similarities are unnerving.
  • The 1920s were also a period when the public — traumatized by a recent pandemic, a devastating world war and startling technological developments — was gripped by the conviction that humanity might soon shuffle off this mortal coil.
  • It also helps us see how apocalyptic fears feed off the idea that people are inherently violent, self-interested and hierarchical and that survival is a zero-sum war over resources.
  • Either way, it’s a cynical view that encourages us to take our demise as a foregone conclusion.
  • What makes an extinction panic a panic is the conviction that humanity is flawed and beyond redemption, destined to die at its own hand, the tragic hero of a terrestrial pageant for whom only one final act is possible
  • What the history of prior extinction panics has to teach us is that this pessimism is both politically questionable and questionably productive. Our survival will depend on our ability to recognize and reject the nihilistic appraisals of humanity that inflect our fears for the future, both left and right.
  • As a scholar who researches the history of Western fears about human extinction, I’m often asked how I avoid sinking into despair. My answer is always that learning about the history of extinction panics is actually liberating, even a cause for optimism
  • Nearly every generation has thought its generation was to be the last, and yet the human species has persisted
  • As a character in Jeanette Winterson’s novel “The Stone Gods” says, “History is not a suicide note — it is a record of our survival.”
  • Contrary to the folk wisdom that insists the years immediately after World War I were a period of good times and exuberance, dark clouds often hung over the 1920s. The dread of impending disaster — from another world war, the supposed corruption of racial purity and the prospect of automated labor — saturated the period
  • The previous year saw the publication of the first of several installments of what many would come to consider his finest literary achievement, “The World Crisis,” a grim retrospective of World War I that laid out, as Churchill put it, the “milestones to Armageddon.
  • Bluntly titled “Shall We All Commit Suicide?,” the essay offered a dismal appraisal of humanity’s prospects. “Certain somber facts emerge solid, inexorable, like the shapes of mountains from drifting mist,” Churchill wrote. “Mankind has never been in this position before. Without having improved appreciably in virtue or enjoying wiser guidance, it has got into its hands for the first time the tools by which it can unfailingly accomplish its own extermination.”
  • The essay — with its declaration that “the story of the human race is war” and its dismay at “the march of science unfolding ever more appalling possibilities” — is filled with right-wing pathos and holds out little hope that mankind might possess the wisdom to outrun the reaper. This fatalistic assessment was shared by many, including those well to Churchill’s left.
  • “Are not we and they and all the race still just as much adrift in the current of circumstances as we were before 1914?” he wondered. Wells predicted that our inability to learn from the mistakes of the Great War would “carry our race on surely and inexorably to fresh wars, to shortages, hunger, miseries and social debacles, at last either to complete extinction or to a degradation beyond our present understanding.” Humanity, the don of sci-fi correctly surmised, was rushing headlong into a “scientific war” that would “make the biggest bombs of 1918 seem like little crackers.”
  • The pathbreaking biologist J.B.S. Haldane, another socialist, concurred with Wells’s view of warfare’s ultimate destination. In 1925, two decades before the Trinity test birthed an atomic sun over the New Mexico desert, Haldane, who experienced bombing firsthand during World War I, mused, “If we could utilize the forces which we now know to exist inside the atom, we should have such capacities for destruction that I do not know of any agency other than divine intervention which would save humanity from complete and peremptory annihilation.”
  • F.C.S. Schiller, a British philosopher and eugenicist, summarized the general intellectual atmosphere of the 1920s aptly: “Our best prophets are growing very anxious about our future. They are afraid we are getting to know too much and are likely to use our knowledge to commit suicide.”
  • Many of the same fears that keep A.I. engineers up at night — calibrating thinking machines to human values, concern that our growing reliance on technology might sap human ingenuity and even trepidation about a robot takeover — made their debut in the early 20th century.
  • The popular detective novelist R. Austin Freeman’s 1921 political treatise, “Social Decay and Regeneration,” warned that our reliance on new technologies was driving our species toward degradation and even annihilation
  • Extinction panics are, in both the literal and the vernacular senses, reactionary, animated by the elite’s anxiety about maintaining its privilege in the midst of societal change
  • There is a perverse comfort to dystopian thinking. The conviction that catastrophe is baked in relieves us of the moral obligation to act. But as the extinction panic of the 1920s shows us, action is possible, and these panics can recede
  • To whatever extent, then, that the diagnosis proved prophetic, it’s worth asking if it might have been at least partly self-fulfilling.
  • today’s problems are fundamentally new. So, too, must be our solutions
  • It is a tired observation that those who don’t know history are destined to repeat it. We live in a peculiar moment in which this wisdom is precisely inverted. Making it to the next century may well depend on learning from and repeating the tightrope walk — between technological progress and self-annihilation — that we have been doing for the past 100 years
  • We have gotten into the dangerous habit of outsourcing big issues — space exploration, clean energy, A.I. and the like — to private businesses and billionaires
  • That ideologically varied constellation of prominent figures shared a basic diagnosis of humanity and its prospects: that our species is fundamentally vicious and selfish and our destiny therefore bends inexorably toward self-destruction.
  • Less than a year after Churchill’s warning about the future of modern combat — “As for poison gas and chemical warfare,” he wrote, “only the first chapter has been written of a terrible book” — the 1925 Geneva Protocol was signed, an international agreement banning the use of chemical or biological weapons in combat. Despite the many horrors of World War II, chemical weapons were not deployed on European battlefields.
  • As for machine-age angst, there’s a lesson to learn there, too: Our panics are often puffed up, our predictions simply wrong
  • In 1928, H.G. Wells published a book titled “The Way the World Is Going,” with the modest subtitle “Guesses and Forecasts of the Years Ahead.” In the opening pages, he offered a summary of his age that could just as easily have been written about our turbulent 2020s. “Human life,” he wrote, “is different from what it has ever been before, and it is rapidly becoming more different.” He continued, “Perhaps never in the whole history of life before the present time, has there been a living species subjected to so fiercely urgent, many-sided and comprehensive a process of change as ours today. None at least that has survived. Transformation or extinction have been nature’s invariable alternatives. Ours is a species in an intense phase of transition.”
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OpenAI Just Gave Away the Entire Game - The Atlantic - 0 views

  • If you’re looking to understand the philosophy that underpins Silicon Valley’s latest gold rush, look no further than OpenAI’s Scarlett Johansson debacle.
  • the situation is also a tidy microcosm of the raw deal at the center of generative AI, a technology that is built off data scraped from the internet, generally without the consent of creators or copyright owners. Multiple artists and publishers, including The New York Times, have sued AI companies for this reason, but the tech firms remain unchastened, prevaricating when asked point-blank about the provenance of their training data.
  • At the core of these deflections is an implication: The hypothetical superintelligence they are building is too big, too world-changing, too important for prosaic concerns such as copyright and attribution. The Johansson scandal is merely a reminder of AI’s manifest-destiny philosophy: This is happening, whether you like it or not.
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  • Altman and OpenAI have been candid on this front. The end goal of OpenAI has always been to build a so-called artificial general intelligence, or AGI, that would, in their imagining, alter the course of human history forever, ushering in an unthinkable revolution of productivity and prosperity—a utopian world where jobs disappear, replaced by some form of universal basic income, and humanity experiences quantum leaps in science and medicine. (Or, the machines cause life on Earth as we know it to end.) The stakes, in this hypothetical, are unimaginably high—all the more reason for OpenAI to accelerate progress by any means necessary.
  • As with other grand projects of the 20th century, the voting public had a voice in both the aims and the execution of the Apollo missions. Altman made it clear that we’re no longer in that world. Rather than waiting around for it to return, or devoting his energies to making sure that it does, he is going full throttle forward in our present reality.
  • In response to one question about AGI rendering jobs obsolete, Jeff Wu, an engineer for the company, confessed, “It’s kind of deeply unfair that, you know, a group of people can just build AI and take everyone’s jobs away, and in some sense, there’s nothing you can do to stop them right now.” He added, “I don’t know. Raise awareness, get governments to care, get other people to care. Yeah. Or join us and have one of the few remaining jobs. I don’t know; it’s rough.”
  • Part of Altman’s reasoning, he told Andersen, is that AI development is a geopolitical race against autocracies like China. “If you are a person of a liberal-democratic country, it is better for you to cheer on the success of OpenAI” rather than that of “authoritarian governments,” he said. He noted that, in an ideal world, AI should be a product of nations. But in this world, Altman seems to view his company as akin to its own nation-state.
  • Wu’s colleague Daniel Kokotajlo jumped in with the justification. “To add to that,” he said, “AGI is going to create tremendous wealth. And if that wealth is distributed—even if it’s not equitably distributed, but the closer it is to equitable distribution, it’s going to make everyone incredibly wealthy.”
  • This is the unvarnished logic of OpenAI. It is cold, rationalist, and paternalistic. That such a small group of people should be anointed to build a civilization-changing technology is inherently unfair, they note. And yet they will carry on because they have both a vision for the future and the means to try to bring it to fruition
  • Wu’s proposition, which he offers with a resigned shrug in the video, is telling: You can try to fight this, but you can’t stop it. Your best bet is to get on board.
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Opinion | Bidenomics: The Queen Bee Is Jennifer Harris - The New York Times - 0 views

  • I was thrilled when the Biden administration came in with a plan for big federal investments in the American industrial base, tariffs, support for labor unions and actions against monopolies. No one knew what to call it — Post-neoliberalism? Democratic capitalism? Neopopulism? — but for the first time in generations a U.S. administration was saying that people should control the market, not the other way around.
  • But if it was the right path, why didn’t more voters trust President Biden on the economy?
  • To understand who Ms. Harris is, you have to know who she used to be.
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  • As a young State Department policy planner in the 2000s, she was a lonely voice in Washington raising the alarm about the rise of China. She pushed for tariffs and against trade agreements before it was cool, and was an author of a book called “War by Other Means” about how blind faith in free markets put the United States at a geopolitical disadvantage. For years, she felt like an oddball in Washington, where both parties were still in thrall to neoliberalism.
  • The Hewlett Foundation hired her as the head of an initiative that has given away $140 million so far to people who are devising a new economic philosophy. Then she served a stint in the White House. Today, she’s an intellectual leader of a growing, bipartisan consensus
  • She fell in love with economics and studied it at Wake Forest. After she joined a student delegation to a NATO summit in Prague in 2002, a faculty adviser on that trip offered her a job in Washington working at the National Intelligence Council. In those early years, she believed what everyone else in Washington believed about the economy — that governments ought not meddle with it.
  • if Mr. Trump correctly identified a problem — “China is eating our lunch” — he did not solve it, beyond putting tariffs on Chinese products. His tax cut for the rich hurt rather than helped matters.
  • It’s the Biden administration that came in with a plan to build an economy that was good for workers, not just shareholders, using some strategies Ms. Harris had been talking about for years.
  • The thinking behind it goes like this: Unquestioning belief in the free market created a globalism that funneled money to the 1 percent, which has used its wealth to amass political power at the expense of everyone else. It produced free trade agreements that sent too many U.S. factories to China and rescue plans after the 2008 financial crisis that bailed out Wall Street instead of Main Street.
  • It was her job to track China’s use of subsidies, industrial espionage and currency manipulation to fuel its rise as a manufacturing powerhouse. Ms. Harris argued that tariffs on China were a necessary defense. Nobody agreed. “I was kind of just banging my head against this wall,” she told me. “The wall was a foreign policy establishment that saw markets as sacrosanct.”
  • Barack Obama campaigned on a pledge to renegotiate NAFTA, but he struck up a new trade deal instead — the Trans-Pacific Partnership. Ms. Harris argued against it. “We didn’t have the foggiest idea” of what it would do to our economy, she told me. Nobody listened.
  • it sent Democrats back to the intellectual drawing board. Larry Kramer, then the president of the Hewlett Foundation, recruited her in 2018 to promote alternatives to ideas that had guided U.S. policy for decades. He hoped she could do for free-market skepticism what Milton Friedman and his allies had done for free-market fundamentalism, which became policy under the Reagan administration and eventually was embraced by both parties as truth.
  • She has since rejoined the Hewlett Foundation, where she funds people who are proposing new solutions to economic problems. One grantee, the conservative think tank American Compass, promotes the idea of a domestic development bank to fund infrastructure — an idea with bipartisan appeal.
  • But the work that Ms. Harris and others in the Biden administration have done is unfinished, and poorly understood. The terms “Bidenomics” and “Build Back Better” don’t seem to resonate
  • Ms. Harris acknowledges that these ideas haven’t yet taken hold in the broader electorate, and that high interest rates overshadow the progress that’s been made. It’s too early for voters to feel it, she told me: “The investments Biden has pushed through aren’t going to be felt in a month, a year, two years.”
  • she celebrates the fact that leaders across the political spectrum are embracing the idea that Americans need to “get back to building things in this country.” This election has no candidates blindly promoting the free market. The last one didn’t either. In the battle of ideas, she has already won.
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Opinion | How We've Lost Our Moorings as a Society - The New York Times - 0 views

  • To my mind, one of the saddest things that has happened to America in my lifetime is how much we’ve lost so many of our mangroves. They are endangered everywhere today — but not just in nature.
  • Our society itself has lost so many of its social, normative and political mangroves as well — all those things that used to filter toxic behaviors, buffer political extremism and nurture healthy communities and trusted institutions for young people to grow up in and which hold our society together.
  • You see, shame used to be a mangrove
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  • That shame mangrove has been completely uprooted by Trump.
  • The reason people felt ashamed is that they felt fidelity to certain norms — so their cheeks would turn red when they knew they had fallen short
  • in the kind of normless world we have entered where societal, institutional and leadership norms are being eroded,” Seidman said to me, “no one has to feel shame anymore because no norm has been violated.”
  • People in high places doing shameful things is hardly new in American politics and business. What is new, Seidman argued, “is so many people doing it so conspicuously and with such impunity: ‘My words were perfect,’ ‘I’d do it again.’ That is what erodes norms — that and making everyone else feel like suckers for following them.”
  • Nothing is more corrosive to a vibrant democracy and healthy communities, added Seidman, than “when leaders with formal authority behave without moral authority.
  • Without leaders who, through their example and decisions, safeguard our norms and celebrate them and affirm them and reinforce them, the words on paper — the Bill of Rights, the Constitution or the Declaration of Independence — will never unite us.”
  • . Trump wants to destroy our social and legal mangroves and leave us in a broken ethical ecosystem, because he and people like him best thrive in a broken system.
  • He keeps pushing our system to its breaking point, flooding the zone with lies so that the people trust only him and the truth is only what he says it is. In nature, as in society, when you lose your mangroves, you get flooding with lots of mud.
  • Responsibility, especially among those who have taken oaths of office — another vital mangrove — has also experienced serious destruction.
  • It used to be that if you had the incredible privilege of serving as U.S. Supreme Court justice, in your wildest dreams you would never have an American flag hanging upside down
  • Your sense of responsibility to appear above partisan politics to uphold the integrity of the court’s rulings would not allow it.
  • Civil discourse and engaging with those with whom you disagree — instead of immediately calling for them to be fired — also used to be a mangrove.
  • when moral arousal manifests as moral outrage — and immediate demands for firings — “it can result in a vicious cycle of moral outrage being met with equal outrage, as opposed to a virtuous cycle of dialogue and the hard work of forging real understanding.”
  • In November 2022, the Heterodox Academy, a nonprofit advocacy group, surveyed 1,564 full-time college students ages 18 to 24. The group found that nearly three in five students (59 percent) hesitate to speak about controversial topics like religion, politics, race, sexual orientation and gender for fear of negative backlashes by classmates.
  • Locally owned small-town newspapers used to be a mangrove buffering the worst of our national politics. A healthy local newspaper is less likely to go too far to one extreme or another, because its owners and editors live in the community and they know that for their local ecosystem to thrive, they need to preserve and nurture healthy interdependencies
  • in 2023, the loss of local newspapers accelerated to an average of 2.5 per week, “leaving more than 200 counties as ‘news deserts’ and meaning that more than half of all U.S. counties now have limited access to reliable local news and information.”
  • As in nature, it leaves the local ecosystem with fewer healthy interdependencies, making it more vulnerable to invasive species and disease — or, in society, diseased ideas.
  • It’s not that the people in these communities have changed. It’s that if that’s what you are being fed, day in and day out, then you’re going to come to every conversation with a certain set of predispositions that are really hard to break through.”
  • we have gone from you’re not supposed to say “hell” on the radio to a nation that is now being permanently exposed to for-profit systems of political and psychological manipulation (and throw in Russia and China stoking the fires today as well), so people are not just divided, but being divided. Yes, keeping Americans morally outraged is big business at home now and war by other means by our geopolitical rivals.
  • More than ever, we are living in the “never-ending storm” that Seidman described to me back in 2016, in which moral distinctions, context and perspective — all the things that enable people and politicians to make good judgments — get blown away.
  • Blown away — that is exactly what happens to the plants, animals and people in an ecosystem that loses its mangroves.
  • a trend ailing America today: how much we’ve lost our moorings as a society.
  • Civil discourse and engaging with those with whom you disagree — instead of immediately calling for them to be fired — also used to be mangroves.
  • civility itself also used to be a mangrove.
  • “Why the hell not?” Drummond asks.“You’re not supposed to say ‘hell,’ either,” the announcer says.You are not supposed to say “hell,” either. What a quaint thought. That is a polite exclamation point in today’s social media.
  • Another vital mangrove is religious observance. It has been declining for decades:
  • So now the most partisan national voices on Fox News, or MSNBC — or any number of polarizing influencers like Tucker Carlson — go straight from their national studios direct to small-town America, unbuffered by a local paper’s or radio station’s impulse to maintain a community where people feel some degree of connection and mutual respect
  • In a 2021 interview with my colleague Ezra Klein, Barack Obama observed that when he started running for the presidency in 2007, “it was still possible for me to go into a small town, in a disproportionately white conservative town in rural America, and get a fair hearing because people just hadn’t heard of me. … They didn’t have any preconceptions about what I believed. They could just take me at face value.”
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