Tuesday, 23 October 2012

2013 Monbukagakusho Scholarships for International Students at Ritsumeikan University in Japan

2013 Monbukagakusho Scholarships for International Students at Ritsumeikan University in Japan

October 19, 2012

Ritsumeikan University offers Monbukagakusho Scholarships for Master’s and PhD Students in the field of Research in Japan 2013
Study Subject(s): The scholarship is provided to learn any of the course offered by the university.
Course Level: This scholarship is for pursuing Master’s and PhD level.
Scholarship Provider: 
Ritsumeikan University
Scholarship can be taken at:
Students will get their studies in Japan.
Eligibility: -Persons who have completed a 16-year education program outside of Japan or who are expected to complete such a program before being enrolled in the graduate school.
-Persons who have graduated from a Japanese university.
-Persons who have completed a 15-year education program in a country outside Japan where the bachelor’s degree program is a three-year degree, or who are expected to complete such a program before being enrolled; who have demonstrated exceptional academic achievement as demonstrated by course grades; and who have received individual permission to apply by Ritsumeikan’s graduate schools prior to the application period (*1).
-Persons who have been recognized as having an academic ability equal to or higher than university graduates by Ritsumeikan University’s graduate schools as a result  of an individual preliminary screening and who have reached 22 years of age or who will reach 22 years of age before being enrolled in the graduate school.
Scholarship Open for International Students: The students of any nationality can apply.
Scholarship Description: The following outlines Ritsumeikan University’s recruiting and application procedures for 2013 University-Recommended Monbukagakusho International Student Scholarships. International Research Students are students who do not intend to acquire academic credits or a degree, but rather intend to conduct research at Ritsumeikan University’s professors and receive research guidance from its professors.
Number of awards offered: Not Known
Tenure of award: Not Known 
Value: Not Known 
Other Benefits: Not Known 
Selection criteria: Not Known
Notification: Mid-July, 2013
How to Apply:The mode of applying is by Electronically.
Scholarship Application Deadline: Do submit your applications till 5 November 2012.

Further Scholarship Information and Application

If links dont work properly then cut n paste the following in your browser to get to the concerned page

http://scholarship-positions.com/2013-monbukagakusho-scholarships-in-international-students-at-ritsumeikan-university-in-japan/2012/10/19/?utm_source=feedburner&utm_medium=feed&utm_campaign=Feed%3A+ScholarshipPositions+%28International+Scholarships+and+Financial+Aid+Positions%29

Fellowship on social media in public affairs reporting open [Worldwide] | IJNet

Fellowship on social media in public affairs reporting open [Worldwide] | IJNet

Fellowship on social media in public affairs reporting open [Worldwide]

Deadline:
11/30/12
Journalists worldwide interested in using social media to report on public affairs can participate in this program.
The Kiplinger Program in Public Affairs Journalism at Ohio State University invites journalists to apply for the 2013 Kiplinger Fellowship.
Participants will explore creative reporting uses of Twitter, Facebook, LinkedIn and other social media sites. Training sessions will showcase strategies for backgrounding individuals and companies, as well as building an online following. Fellows will learn the latest tactics for effective public affairs reporting, including the retrieval of public records, documents and data.
Print, broadcast and online journalists with five or more years of experience and strong English skills are eligible to apply.
The fellowship includes accommodation and a travel stipend, and will take place April 7 - 12, 2013 in in Columbus, Ohio.
The deadline is November 30.
For more information, click here.

Media training workshop open to Arab journalists | IJNet

Media training workshop open to Arab journalists | IJNet

Media training workshop open to Arab journalists

Deadline:

11/4/12
Journalists from one of the 22 Arab countries with at least 10 years of experience can apply for a spot in this workshop.
The Doha Centre for Media Freedom (DCMF invites Arab journalists working for print, radio, television or online media outlets to participate in a five-day workshop, “Train the Trainers” December 16 - 20 in Doha.
Experienced journalists wishing to become media trainers must acquire knowledge in designing relevant curricula and adopt up-to-date teaching techniques within the context of a fast-changing media industry. Regardless of their competency and experience, many journalists lack skills in imparting knowledge and know-how to others through formal training.
The goal of the workshop is to empower future media trainers to acquire new knowledge and skills in the design, delivery and evaluation of core competency media development programs.
Applicants must possess an excellent command of the Arabic language. Proficiency in English is a plus.
DCMF will cover all travel and accommodation expenses. Each participant will receive a per diem for the period of the training (including two travel days).
The application deadline is November 4.
For more information, click here.

Eight ways journalists can use SoundCloud | IJNet

Eight ways journalists can use SoundCloud | IJNet

Eight ways journalists can use SoundCloud

10/17/12
image:
Audio is an engaging way to bring readers and listeners deeper into a story, and it’s never been easier to tell stories with sound on the Web.
The best part: You don't need prior radio experience or access to expensive tools. SoundCloud, a Web-based audio program that allows users to create, share and collect audio clips, lets journalists and news organizations post, share and comment on audio with its free, user-friendly tools.
Launched in 2007 as a musician's resource, SoundCloud now has 20 million registered users, and is increasingly used for the spoken word. ReadWriteWeb recently described it as “a hub for radio-style journalism and commentary with an interactive twist.”
Here are some of the ways SoundCloud is being used around the world:
1. To post news programming
Traditional news outlets such as France 24 post their regular radio news programming on SoundCloud. This makes the news ripe for social sharing and available to a new audience. Listeners can also submit comments directly onto the audio track. The site lets users upload a total of 120 minutes of audio at any one time, but yearly subscriptions with more space are available for a fee.
2. To report from the field and post audio from interviews
A word or time limit in traditional media often forces reporters to leave out valuable quotes and material. SoundCloud is a place to post it all. As ReadWriteWeb notes, social media blogger and Columbia University's chief digital officer Sree Sreenivasan uses SoundCloud to post audio from the interviews he conducts with business and tech experts.
This feature can be especially useful during major events, such as elections, because it lets the storyteller include a number of voices and opinions. During the French presidential elections earlier this year, Al Jazeera reporters asked people which candidate they would vote for and why. In the U.S., California’s KQED public radio created “Voices of Young Voters” to explore youth views of the upcoming presidential election.
3. Record, edit and upload a recording from an iPhone
Reporters in the field can use the SoundCloud record feature on the iPhone for simple audio. The site also recently added trim and edit features to its mobile apps.
To edit more complicated audio packages using multitrack recording, you can use VC Audio Pro, which allows you to record, edit and post directly to SoundCloud. Other apps with edit features include FiRe 2 – Field Recorder and iRig Recorder.
Using these more complex tools, The Times (UK) uses SoundCloud to produce short audio dispatches and interviews, such as these clips from the Olympic Torch relay.
4. Embed audio onto your news site or blog
SoundCloud allows audio clips to be embedded onto other sites as well. CNN embeds SoundCloud clips on its CNN Radio Soundwaves blog. It includes some that were produced by other news organizations. PRI’s The World, too, embeds audio on its story pages, such as this one on the sound of Earth's "security blanket".
5. Invite listeners to talk
In 2011, National Public Radio encouraged its listeners to submit audio recordings about summer music memories. They embedded the SoundCloud dropbox widget on the NPR site, which allowed users to upload their own audio.
6. Produce a daily or weekly audio roundup
International tech news site The Next Web produces a daily roundup of the previous day’s top tech stories and delivers them to followers via a short morning update called the TNW Daily Dose.
7. Search for sources
Journalism.co.uk recommends that journalists use SoundCloud to look for quotes or audio from a news event to supplement reporting. To do so, you can use the site’s advanced search function. There is also an option to search for content licensed under Creative Commons. For instance, here are the search results for "Arab Spring".
8. Post other audio that might interest your audience
PBS NewsHour recently posted the entire audio clip of Bill Clinton addressing the Democratic National Convention. Do you have audio that users might enjoy or find interesting?
How are you using SoundCloud? Please share and post your links in the comments.
Image provided by SoundCloud

Saturday, 20 October 2012

Scotland independence movement sends dangerous message

Scotland independence movement sends dangerous message

Scotland independence movement sends dangerous message

Scotland's Alex Salmond and British Prime Minister David Cameron signed the 'Edinburgh deal' – allowing Scotland to hold a referendum vote on independence in 2014. As Europe's bonds are tested, the push for Scottish independence sends a dangerous 'go it alone' message.

By Charles King / October 16, 2012
Britain's Prime Minister David Cameron, right, and Scotland's First Minister Alex Salmond sign an agreement in Edinburgh, Oct. 15 that allows Scotland to hold a 2014 referendum vote on Scottish independence. Op-ed contributor Charles King writes: 'Now is a time when bonds must be strengthened and perfected, not broken....The success of the Scottish independence movement in persuading London to accede to a referendum serves as a warning to Europe's democracies on how calculating politicians can undermine the very institutions most in need of preserving.'
Gordon Terris/AP
 
Washington and London
The question of Scotland’s place in the United Kingdom is currently the single most pressing issue in British politics and a point of growing concern across Europe. On Monday, Scottish First Minister Alex Salmond and British Prime Minister David Cameron signed what has been dubbed the “Edinburgh deal” – allowing Scotland to hold a referendum vote on independence in 2014.
As Europe faces a dire fiscal crisis, and some within Britain call for an exit from the European Union, the push for Scottish independence sends a dangerous “go it alone” message. Europe’s – and Britain’s – problems require unity. Now is a time when bonds must be strengthened and perfected, not broken.
Secessionist movements were once seen as the last option for embattled ethnic minorities or struggling democrats lodged inside brutal autocracies. But the Scottish deal represents the first wave in a new tide of independence claims in some of Europe's most stable democracies, from Spain to Belgium. The success of the Scottish independence movement in persuading London to accede to a referendum serves as a warning to Europe's democracies on how calculating politicians can undermine the very institutions most in need of preserving.
And to would-be secessionists in other countries, it is a lesson about the uses of quiet maximalism – the way in which astute regional parties can dismantle a workable country while no one seems to be looking.
Scotland joined its royal house with that of England in 1603; the countries' two parliaments were merged in 1707. Afterward, Scots retained many of their ancient institutions, such as a separate legal system, and Scots spread throughout the British Empire – from America to India – as soldiers, administrators, and merchants. In 1998, the Scottish Parliament was restored in Edinburgh, giving Scots much greater control over local governance and eventually even significant tax-raising powers.
Rather than staking their claim on ancient heritage or minority rights, modern Scottish nationalists offer a novel argument for independence: that the people of Scotland embrace political and social values that set them apart from the inhabitants of England, Wales, and Northern Ireland. A preference for social democratic policies such as free higher education and generous pensions, as well as a pan-European orientation on foreign and defense policy distinguishes Scots from other Britons, says the SNP. Now, the "Edinburgh deal" envisions a single, up-or-down vote on secession and will allow voters as young as 16 years old to cast a ballot.
Mr. Cameron has promised not to block independence if the referendum succeeds, but he will also probably move to grant even more powers to Edinburgh as a way of buying off Scottish voters – a policy known as maximum devolution, or “devo-max." However, over the next two years, the SNP, led by the gifted strategist Mr. Salmond, will counter those efforts with an energetic campaign to convince Scots that building a new and independent country is in their best interest.
As they make their case for independence, SNP leaders have found themselves in the difficult position of talking up the importance of a referendum while also downplaying the significance of the result they hope to attain. Salmond has repeatedly affirmed the right of the people of Scotland to determine their own fate. But he has insisted that the social union between Scotland and the rest of the United Kingdom – ties of history, language, and culture – would endure long after the political union vanishes. Moreover, with a sovereign Scotland still firmly planted in the European Union and presumably NATO, he argues, the costs of splitting off from the United Kingdom would be small.
Building what the SNP calls “a culture of independence” has defined its behavior as a governing party, and the next two years will be spent in permanent campaign mode. Such determined advocacy will cloud the ability of Scots to make a clear-eyed assessment of the costs and benefits of leaving the union.The SNP paints a vision of an independent Scotland that would be fairer, greener, and more progressive, yet still integrated with its neighbors, with Scots sharing the crown, a currency, and a common defense with the rump union of England, Wales, and Northern Ireland. But this outcome is still more fantasy than assured reality.
Much depends on the complex negotiations that would follow a successful referendum. The disposition of North Sea oil reserves, for example, would be one of the bargaining points, as would the apportionment of the British national debt. The status of British nuclear weapons currently stationed in Scotland would also come into question, given the SNP's desire for a nuclear-free country.
Scotland's independence bid, like all nationalist movements, is the product of calculated moves by political elites within existing institutions. Independence movements come about not because every member of an ethnic minority wakes up one day and decides to wave a flag or, worse, shoulder a rifle.
Instead, they usually begin with the simple assertion that local laws should take precedence over those devised by distant legislators. They progress toward more radical demands for control over local natural resources or an end to military service beyond one’s own frontiers. Their culmination is marked not by the roar of celebration, but by the whimpering realization in the capital that the benefits of staying together are just no longer worth the costs.
A nationalist movement seeks its own country. A nationalist party seeks a country that will keep electing it. The SNP has structured the debate over Scottish independence in ways that make it difficult for voters to distinguish these two demands. The SNP’s nationalism is certainly more palatable than the blood-and-soil variety. But its example is politically self-serving and ultimately harmful to Scotland's – and even Europe’s – long-term well-being.
To restive regionalists, the SNP provides a tutorial in how a secessionist party can win ground by understanding existing institutions better than the people who should have been most committed to preserving them. The SNP has astutely transformed the policy of devolution – a set of concessions designed to empower local government while strengthening the sense of common cause between Scots and other Britons – into a prelude to possible independence.
To the rest of Europe and the world, Scotland once embodied the belief that local distinctiveness, united governance, and democratic practice were mutually reinforcing. It would be a shame if the Scottish model became something else: a handbook for transforming muscular regionalism into territorial separatism.
Charles King is professor of international affairs and government at Georgetown University and a fellow at the Woodrow Wilson Center. His essay “The Scottish Play,” from which this article is adapted, appears in the Sept-Oct issue of Foreign Affairs.






The Myth That Screwed Up 50 Years of U.S. Foreign Policy - By Leslie H. Gelb | Foreign Policy

The Myth That Screwed Up 50 Years of U.S. Foreign Policy - By Leslie H. Gelb | Foreign Policy

The Myth That Screwed Up 50 Years of U.S. Foreign Policy

It's time to set the record straight about John F. Kennedy's handling of the Cuban missile crisis.

BY LESLIE H. GELB | NOVEMBER 2012

U.S. President John F. Kennedy's skillful management of the Cuban missile crisis, 50 years ago this autumn, has been elevated into the central myth of the Cold War. At its core is the tale that, by virtue of U.S. military superiority and his steely will, Kennedy forced Soviet Premier Nikita Khrushchev to capitulate and remove the nuclear missiles he had secretly deployed to Cuba. As Secretary of State Dean Rusk rhapsodized, America went "eyeball to eyeball," and the Soviets "just blinked." Mythologically, Khrushchev gave everything, and Kennedy gave nothing. Thus the crisis blossomed as an unabashed American triumph and unmitigated Soviet defeat.
Kennedy's victory in the messy and inconclusive Cold War naturally came to dominate the politics of U.S. foreign policy. It deified military power and willpower and denigrated the give-and-take of diplomacy. It set a standard for toughness and risky dueling with bad guys that could not be matched -- because it never happened in the first place.
Of course, Americans had a long-standing mania against compromising with devils, but compromise they did. President Harry Truman even went so far as to offer communist Moscow a place in the Marshall Plan. His secretary of state, Dean Acheson, later argued that you could deal with communists only by creating "situations of strength." And there matters more or less rested until the Cuban missile crisis, when JFK demonstrated the strength proposition in spades, elevating pressures on his successors to resist compromise with those devils.
What people came to understand about the Cuban missile crisis -- that JFK succeeded without giving an inch -- implanted itself in policy deliberations and political debate, spoken or unspoken. It's there now, all these decades later, in worries over making any concessions to Iran over nuclear weapons or to the Taliban over their role in Afghanistan. American leaders don't like to compromise, and a lingering misunderstanding of those 13 days in October 1962 has a lot to do with it.
In fact, the crisis concluded not with Moscow's unconditional diplomatic whimper, but with mutual concessions. The Soviets withdrew their missiles from Cuba in return for U.S. pledges not to invade Fidel Castro's island and to remove Jupiter missiles from Turkey. For reasons that seem clear, the Kennedy clan kept the Jupiter part of the deal secret for nearly two decades and, even then, portrayed it as a trifle. For reasons that remain baffling, the Soviets also kept mum. Scholars like Harvard University's Graham Allison set forth the truth over the years, but their efforts rarely suffused either public debates or White House meetings on how to stare down America's foes.
FROM THE OUTSET, Kennedy's people went out of their way to conceal the Jupiter concession. It started when the president's brother, Attorney General Robert F. Kennedy, met Soviet Ambassador Anatoly Dobrynin on Oct. 27 to present the Jupiters-for-Soviet-missiles swap. He told Dobrynin: We'll take the Jupiters out, but it's not part of the deal, and you can never talk about it. The Soviets removed their missiles, the United States removed the Jupiters, and the secret held for 16 years, until a small paragraph in an Arthur Schlesinger book upon which few remarked.
Four years later, Kennedy's key advisors wrote a Time article on the 20th anniversary of the crisis in which they admitted including the Jupiters in the agreement. They did so, however, in such a way as to diminish its importance, presenting the Jupiters almost as an afterthought while saying that JFK had already decided to remove them from Turkey. Then, they totally contradicted themselves, acknowledging that secrecy surrounding the Jupiter part of the deal was so important that a leak "would have had explosive and destructive effects on the security of the U.S. and its allies."
These Kennedy aides were so devoted to their triumphal myth that most of them continued to propagate it long after they themselves had turned against its very precepts. Most ended up opposing a Vietnam war that JFK had still been fighting when he was assassinated. They all grew skeptical about the value of military might and big-power confrontations, and they became formidable advocates of diplomatic compromise.
It was not until 1988, however, that one among them clearly and openly acknowledged his decades-long hypocrisy and its costs. In his book Danger and Survival, McGeorge Bundy, Kennedy's national security advisor, lamented: "Secrecy of this sort has its costs. By keeping to ourselves the assurance on the Jupiters, we misled our colleagues, our countrymen, our successors, and our allies" into concluding "that it had been enough to stand firm on that Saturday." It took 26 years, but there it was.
STUNNINGLY, THE RUSSIANS didn't reveal the truth far earlier. A well-timed Soviet leak after the Jupiters were removed could have done two things for Moscow. First, the story of the swap would have sharply blunted accounts of their utter defeat. Never mind that JFK was planning to take out the Jupiters anyway and replace them with Polaris missile-firing subs.
Second, it would have caused great consternation in NATO, where the swap would have been portrayed as selling out Turkey. RFK even told Dobrynin that this fear was his major reason for keeping the deal secret. Dobrynin cabled Bobby's words back to Moscow: "If such a decision were announced now, it would seriously tear apart NATO." Once the Jupiters had been removed, Moscow could have pounced. One would think the Soviets would have welcomed the opportunity.
Dobrynin fully grasped how the myth chilled U.S. willingness to compromise, something he told me about in the late 1970s when I was ensconced at the State Department. He didn't say so publicly, however, until his memoirs came out in 1995. He wrote: "If Khrushchev had managed to arrange [a leak], the resolution of the crisis need not have been seen as such an inglorious retreat."

Why, then, didn't the Soviets leak it? It's quite possible, even likely, that Khrushchev and his Politburo never considered leaking because they had no idea how the crisis would be portrayed -- how weak they would look. On the day the crisis was reaching a crescendo, before he knew that Kennedy would offer up the Jupiters, Khrushchev was ready to back down. He told his colleagues that the Soviet Union was "face to face with the danger of war and of nuclear catastrophe, with the possible result of destroying the human race." He wasn't thinking about the Jupiters; he just wanted out and was determined to convince his colleagues that a U.S. pledge not to invade would be enough to protect Soviet power and pride.
To check this view, I contacted the three living people most likely to know: Sergei Khrushchev (son of Nikita), Anatoly Gromyko (son of Andrei, the Soviet foreign minister during the missile crisis), and Alexander "Sasha" Bessmertnykh (a Foreign Ministry official at the time of the crisis and later foreign minister). All backed this theory, though they acknowledged not knowing the details of Khrushchev's thinking. Soviet leaders, they said, genuinely feared a U.S. invasion of Cuba. None was moved by my argument that by the time of the crisis, there was no likelihood of such an invasion. After the Bay of Pigs fiasco, this idea was laughable in U.S. policy circles. None would grant that Moscow's leaking of the swap was necessary to preserve Soviet honor. Yet as we spoke further, all eventually conceded that the image of Soviet power indeed would have fared far better had the swap become known.
In Moscow at a retrospective on the crisis in 1989, JFK speechwriter and confidant Ted Sorensen touted Bobby Kennedy's Thirteen Days as the definitive account. Dobrynin interrupted to say that the book omitted the Jupiters, to which Sorensen replied that Dobrynin was correct, but at the time, the deal was still "secret." "So I took it upon myself to edit that out," he said.
Reporters covering the meeting took it upon themselves not to chronicle this exchange. Nor has foreign-policy chatter over the years made much reference to the Jupiters. Indeed, the compromise is mentioned so infrequently that journalist Fred Kaplan had to nail it to the wall at considerable length in a recent Slate review of Robert Caro's latest volume on President Lyndon B. Johnson. Careful as he is, Caro relied on sources that extolled Kennedy's resolve, and he ignored the Jupiters.
COMPROMISE IS NOT a word that generally makes political hearts flutter, and it is even less loved when it comes to the politics of U.S. foreign policy. The myth of the missile crisis strengthened the scorn. The myth, not the reality, became the measure for how to bargain with adversaries. Everyone feared becoming the next Adlai Stevenson, whom the Kennedys, their aides, and their foes discredited for proposing the Jupiter deal publicly.
It's not that Washingtonians scurried about proclaiming their desire to emulate the missile-crisis myth, but it was very much a part of the city's ether in columns and conversations with friends from the early 1960s to the 1990s. Few wanted to expose themselves by proposing even mild compromises with enemies. In the famous "A to Z" review of U.S. policy toward Vietnam, ordered by LBJ after the 1968 Tet Offensive, we (I was in the Pentagon at that time) weren't even permitted to study possible compromises with Hanoi. And there's no doubt that only a dyed-in-the-wool Cold Warrior like Richard Nixon finally could have withdrawn from Vietnam.
It took extraordinary courage to propose compromises in arms control talks with Moscow. Even treaties for trivial reductions in nuclear forces on both sides faced furious battles in Congress. Today, it is near political suicide to publicly suggest letting Iran enrich uranium up to an inconsequential 5 percent with strong inspections, though the Nuclear Non-Proliferation Treaty permits it. And while Barack Obama's team is talking to the Taliban, its demands are so absolute -- the Taliban must lay down their arms and accept the Kabul constitution -- that any serious give-and-take is impossible. Were it at all serious, the White House would have to at least dangle the possibility of a power-sharing arrangement with the Taliban.
For too long, U.S. foreign-policy debates have lionized threats and confrontation and minimized realistic compromise. And yes, to be sure, compromise is not always the answer, and sometimes it's precisely the wrong answer. But policymakers and politicians have to be able to examine it openly and without fear, and measure it against alternatives. Compromises do fail, and presidents can then ratchet up threats or even use force. But they need to remember that the ever steely-eyed JFK found a compromise solution to the Cuban missile crisis -- and the compromise worked.

Want Closure? Go Talk to Dr. Phil. - By Aaron David Miller | Foreign Policy

Want Closure? Go Talk to Dr. Phil. - By Aaron David Miller | Foreign Policy

Want Closure? Go Talk to Dr. Phil.

You won't find it on the Iranian nuclear issue.

BY AARON DAVID MILLER | OCTOBER 17, 2012

If you're looking for clarity, change the channel now -- you're on the wrong station. When it comes to dealing with Iran's nuclear program, we may be living with great uncertainty for some time to come. Regardless of who's elected president in November, 2013 may be no more determinative in deciding the fate of the mullahs' bomb than 2012 was. And here's why.
For some time now, the Obama administration and the Iranian mullahcracy have shared, indirectly, a common objective: preventing an Israeli attack against Iran's nuclear sites. Even though the mullahs have flaunted the IAEA and much of the international community on the nuclear issue, they've left enough ambiguity about their intentions and demonstrated sufficient interest in negotiations to play for time -- a kind of Tom and Jerry cat-and-mouse game.
And the world's big powers have only been too willing to play along. Nobody wants war when sanctions and the prospects of diplomacy hold out even the slightest hope of changing Iran's course, least of all the United States. In the process of extricating America from two of the longest and most profitless wars in its history, President Barack Obama will go to great lengths to avoid getting America into another one.
Nor, despite some muscular rhetoric on Mitt Romney's part, is there much reason to believe he'd want to quickly green-light an Israeli strike or conduct one of his own. Right now, there's little clarity in the governor's position. Is it Iran's nuclear capacity he seeks to prevent, or the weapon itself?
I suspect that once the Pentagon and CIA go through their horrific ratio-of-risk-to-reward briefings and his political advisors think through the uncertainties that might be triggered in the wake of a U.S. strike, the least of which might be rising oil prices and plunging financial markets, much of Romney's campaign risk readiness will be converted into the more sober risk aversion of governance. Given the domestic challenges that the next American president will face, there's more than a little reason to believe that war with Iran might not be priority No. 1.
Throw in a healthy dose of serious divisions within Israel about the wisdom of an Israeli strike without U.S. approval or the real effectiveness of any military option that doesn't involve America in a major way. Add a pinch of Iranian caginess when it comes to keeping the international community guessing about its nuclear intentions and enrichment levels. And finish it off with a natural American penchant these days for the talking cure instead of a shooting war, and next year may well provide a recipe for diplomacy, not conflict.
The point is: Without an Iran much further along in its quest for nuclear weapons, nobody with the possible exception of Israel -- and again, there's no consensus there, let alone in Washington -- has the inclination, let alone the will, to go to war right now. And while the issue of who's got bigger balls on what to do about Iran has already figured prominently in the campaign and in the debates, caution should be the watchword for now.
If a U.S. president at some point makes a decision that stopping Iran from acquiring a nuclear weapon requires military force -- that is to say it is in the highest category of what constitutes America's vital national interest -- he almost certainly will try every conceivable approach before acting, including the possibility of direct secret diplomacy with the mullahs. But I don't think we're there quite yet.
Americans love clarity. But clearly there's not much of it when it comes to so many dimensions of the Iranian nuclear program. Does Iran want an actual weapon? (I think so, but who really knows?) How much highly enriched uranium do the Iranians really possess? How far along is their weapons research? How long would it take Iran to get a few bombs? One to three years? Take your pick. How does military action -- "mowing the grass," as the Israelis put it -- prevent Iran from reconstituting its program?
We've been conditioned to think in terms of binary choices: bomb or accept the bomb. And without a negotiated deal on the enrichment issue or some unilateral capitulation, it may well come down to that, in large part because though there are clearly risks to using military force, there are also risks to inaction. Given the fact that both Obama and Romney have repeatedly committed themselves to preventing Iran from acquiring a weapon, failure to do so would be a huge blow to America's credibility. Keep in mind this is the third administration that has vowed to stop the Iranian nuclear program.
If a military strike on Iran by Israel or the United States is the option that is ultimately contemplated, then there are two issues in the uncertainty department that need to be carefully considered. Both involve the end-state objective; that is, what we're ultimately trying to achieve. First, if in fact Iran's quest for a weapon is a matter of identity driven by profound insecurity and grandiosity, what is to prevent the regime from reconstituting its weapons program -- this time with more legitimacy, more determination, and more resolve? And second, once knowledge is acquired and technical and scientific processes mastered, how do you "bomb" that information and knowledge from a society's collective consciousness and memory? It seems logical that unless you can change the acquisitive character of the mullahs when it comes to nuclear enrichment, an attack, certainly by Israel, would indeed be akin to mowing the grass. The Iranians will simply plant the seeds again and the grass will grow back.
Nothing about this logic chain should rule out consideration of using force. A negotiated settlement is preferable, but even that may not be able to provide the kinds of iron-clad guarantees that will reassure the United States, let alone the Israelis, that Iran has abandoned its nuclear-weapons aspirations. We have to get used to the fact that without a fundamental change in the Iranian regime, it's unlikely that we will ever reach this level of certainty and assurance.
And no one -- not Benjamin Netanyahu, not Barack Obama, not Mitt Romney -- has the capacity and power to produce that. Iran fashions itself a great power profoundly insecure and entitled. Had Ayatollah Khomeini not overthrown the shah in 1979, Iran would have already been a nuclear weapons state. And even if you somehow resolve the nuclear-weapons issue, there are a variety of other matters, from Iran's meddling in its neighbors to its support for terrorism, that divide Iran and the West.
Nukes or no nukes, this situation is likely to guarantee a continuation of a cold war between Iran and the West and the ever-present risk of a hot one. If I had to bet the mortgage, however, I'd say we'll still be in a twilight zone on the Iranian nuclear issue this time next year -- suspended somewhere between a war nobody wants and can afford and negotiations and sanctions that have not been able to stop the mullahs' search for a nuclear weapons capacity. Yet?

Afghanistan's Fiscal Cliff - By Matthieu Aikins | Foreign Policy

Afghanistan's Fiscal Cliff - By Matthieu Aikins | Foreign Policy

Afghanistan's Fiscal Cliff

Kabul-watchers are rightly worried about what the withdrawal of Western aid money will mean for one of the most impoverished countries on the planet. But everyone's asking the wrong questions.

BY MATTHIEU AIKINS | OCTOBER 17, 2012

KABUL — Afghanistan is awash in foreign aid. In 11 years of war, the United States and its allies have funneled hundreds of billions of dollars into the country. As a result, international spending is now the biggest part of the economy, making Afghanistan an "extreme outlier" when it comes to aid dependency, according to the World Bank. In 2010, for example, it received about $15.7 billion in development funding alone. That's roughly equivalent to Afghanistan's entire gross domestic product. And with $9.4 billion in public spending versus $1.65 billion in revenues in 2010-11, the country is heading off a fiscal cliff as the international community scales down its involvement ahead of transition in 2014.
But what will be the political consequences of the money running dry? For the time being, international spending has forged a bought peace in Kabul, but many of the political settlements that keep violence at bay -- the agreements and expectations negotiated between elites -- could be upended by the transition. To benefit from aid largesse, Afghans have had to cooperate. At the Kabul Bank, for instance, which was linked to major Afghan contractors employed by the United States and the International Security Assistance Force (ISAF), cooperation between competing factions enabled nearly $1 billion in insider loans to be siphoned off in recent years. The bank's financial arrangement illustrates the reigning political settlement in the country, uniting a number of national-level networks, most notably those of President Hamid Karzai, a southern Pashtun, and Vice President Mohammed Fahim, a northern Tajik. The Karzai-Fahim alliance has been crucial to stabilizing relationships between north and south in Afghanistan, and has been underpinned by the flow of international money, which provided an incentive to play along with the existing order.
This situation is replicated in hundreds of smaller, localized political agreements across Afghanistan. The country remains fragmented among rival networks of strongmen, many of whom have been co-opted by the central state and the international community. A drastic decline in funding will undoubtedly generate instability as the reigning political deals are renegotiated. Yet, even as the international community charges ahead with its exit strategy of increasing local troop levels and building bureaucratic capacity, there has been little serious analysis about the way its spending is interlinked with Afghan politics.
This week, I published a paper on Afghanistan's private security companies (PSCs) that examines the relationship between international spending and Afghan politics. Fed by the military surge, the PSC industry in Afghanistan has grown to a monstrous size, with high-end estimates of 60,000-80,000 employees in 2011, most of them armed Afghan guards. Unlike Iraq, the PSC industry in Afghanistan is largely dominated by Afghans, and as result it has become deeply interlinked with the Afghan government and local politics. Many of the newly rich PSC owners were former commanders who fought in the Soviet and civil wars and were able to mobilize networks of armed men. Some of them, like Matiullah Khan in the province of Urozgan, have become the preeminent strongmen in their areas as a result of their control over supply convoy and base defense contracts for the United States and NATO.
The PSC industry is one example of how international funding, by its sheer scale, has shaped the environment in which Afghan actors make decisions. As such, it has a lot to say about the frequently bemoaned corruption of the Afghan central government.
Take, for example, the critical southern province of Kandahar, where in 2001, the Karzai family was faced with the task of outmaneuvering its principal rival, Gul Agha Sherzai, who had from the beginning secured crucial access to U.S. military patronage. Because of his contracts with the U.S. military -- which allowed him to transform his private militias into "legitimate" PSCs -- Sherzai was initially beyond the control of the central state. But President Karzai eventually outmaneuvered him by empowering his half-brother Ahmed Wali to take control of critical contracting networks, by making patronage appointments, and using the muscle of the central government to intervene directly in private business in Kandahar.
The result was politically beneficial for Karzai, but detrimental to Afghanistan's fragile democratic institutions. The corruption of the central government, in other words, was a product of the structure and scale of the international intervention, which made contracting, not institutions, the determinant of political power in Afghanistan.
So far, the myriad donor nations, militaries, and non-governmental organizations involved in Afghanistan have mostly defined a successful transition as a technical exercise -- one defined by objectives like handing over security responsibilities to Afghan forces, enhancing the capacity of the civil service, and so forth. But the future stability of the country has less to do with Afghan troop levels than it does with whether Afghan powerbrokers can forge a more stable, indigenous order after the international money dries up. There is, perhaps, a silver lining to the coming economic decline: Afghan politicians will have to rely more on their own people and less on a top-down flow of dollars. But the reckoning will not be pretty.

Britain Cripples Business with a barmiest immigration policy: Economist

Immigration

The Tories’ barmiest policy

Britain’s immigration policy is crippling business and the economy. Wake up, Mr Cameron


THE prime minister’s speech at the Conservative Party conference on October 10th contained a thumping statement of the obvious. Britain might never recover its former glory, David Cameron admitted. The country is running a global race against much nimbler competitors. Its only hope is to slice regulations so that innovative, entrepreneurial folk can thrive, and trade furiously. Splendid stuff. So why is Mr Cameron’s government pursuing an immigration policy that is creating red tape, stifling entrepreneurs and hobbling Britain?
The country has, in effect, installed a “keep out” sign over the white cliffs of Dover. Even as Mr Cameron defends the City of London as a global financial centre, and takes planeloads of business folk on foreign trips, his government ratchets up measures that would turn an entrepôt into a fortress. In the past two years the Tories have made it much harder for students and foreign workers and family members to enter and settle in the country. Britain is not only losing the war for global talent, it is scarcely competing. More people now leave to take up job offers in other countries than come the other way.
Little England trumps Great Britain Businesses everywhere complain about immigration systems. But Britain’s is comprehensively bad, in three ways. First, the policy itself. In opposition, Mr Cameron promised to bring net migration—immigration minus emigration—to below 100,000 a year by 2015. Since the latest tally stands at 216,000, this is hard, perhaps impossible. Britons and Europeans can come and go as they wish. Human-rights laws protect asylum-seekers. So Theresa May, the home secretary, has squeezed migrant workers and students—the very people who are most likely to boost Britain’s economy, as well as the most likely to leave soon. The number of study visas handed out has plunged by 21% in a year. The government has made it harder to move from study to work, which in turn will deter foreign students from applying. International education, one of the country’s most important export industries and an area where Britain should have a huge competitive advantage, is being starved.
In theory, Britain’s door is open to the most highly skilled, as well as to the very rich. In practice it is not, because of the second disastrous aspect of the immigration system: its bureaucracy. It takes far too long to process visa applications. Big firms can generally put up with the hassle involved in transferring a worker from Delhi. Smaller ones cannot. Fast-growing technology firms are in the worst position because they compete for a flighty, global pool of talent (see article). Workers who navigate the maze are tied to a firm, sapping their productivity. Britain fails to hand out even its meagre allocation of work visas. One category, for people of exceptional talent, has an annual cap of 1,000. Last year 37 such visas were granted.
Third, British politicians, led by the Conservatives, do their utmost to signal hostility and mislead the public. Last month Parliament approved a motion to take “all necessary steps” to keep the country’s population below 70m. Ed Miliband, Labour’s leader, has apologised on behalf of his party for the migration of east Europeans to Britain in the middle of the last decade (never mind that the Poles, like most people who migrate for work, claimed few benefits and contributed far more to the public purse). Mr Cameron has promised to review the rules guaranteeing freedom of movement within the EU. This right probably cannot be withdrawn unless Britain leaves the union, which it is not about to do. The only thing achieved by bringing it up is to add neon lights to the “keep out” sign. Talented folk, who can go elsewhere, will get the message.
The paradox of populism
Some senior politicians admit privately that Britain’s immigration policy is disastrous. A few business-minded Conservative MPs have begun to complain that the country’s immigration strategy is undermining its growth strategy. Boris Johnson, London’s ambitious, liberal-minded mayor, is egging them on. But what can be done, they ask? Britons, they shudder, will not wear a relaxation of the immigration rules. The government must stick to its promises.
The simple answer is that if a policy is doing as much harm to your country’s prospects as the net-migration target, then you should drop it entirely—and explain why. Mr Cameron is sadly unlikely to make such a bold U-turn, but he has some political room for smaller manoeuvres.
Immigration is certainly unpopular. Britons are more opposed to it than are the inhabitants of any other large European country. Fully 62% think immigrants make it harder for natives to get jobs, compared with a European average of 45%. Three-quarters argue that immigrants put too much pressure on public services. But the natives are not as xenophobic as their leaders suppose. Britons dislike skilled workers and students less than other immigrants. (Indeed, by European standards, they are exceptionally keen to discriminate between such desirable arrivals and the rest.) More important, they know the government’s policies aren’t working: immigration scores even lower than health, a Tory disaster area. If the net migration target is missed they will become angrier.
Even if Mr Cameron cannot scrap that foolish target, the government could take a few useful steps. Some groups, such as workers on company transfers and students, could be exempted from the target. The government should make it easier to move from study to work, at least for students at the best institutions. Somebody who can make it to a leading university will almost certainly prove an asset to Britain. The government should also speed and simplify the visa system. It has hacked back much of the red tape that binds business, and should do the same to immigration rules.
As emerging countries grow, the enthusiasm of young, talented foreigners to get an education in a British university or to sell their wares to Britain’s relatively prosperous consumers is likely to diminish. For now, though, the country’s global popularity gives it a huge advantage, which the government is squandering. The world is a competitive place. Britain is trying to run with its shoelaces tied together.


The Driverless Road ahead

The driverless road ahead

Carmakers are starting to take autonomous vehicles seriously. Other businesses should too


THE arrival of the mass-produced car, just over a century ago, caused an explosion of business creation. First came the makers of cars and all the parts that go into them. Then came the garages, filling stations and showrooms. Then all sorts of other car-dependent businesses: car parks, motels, out-of-town shopping centres. Commuting by car allowed suburbs to spread, making fortunes for prescient housebuilders and landowners. Roadbuilding became a far bigger business, whereas blacksmiths, farriers and buggy-whip makers faded away as America’s horse and mule population fell from 26m in 1915 to 3m in 1960.
Now another revolution on wheels is on the horizon: the driverless car. Nobody is sure when it will arrive. Google, which is testing a fleet of autonomous cars, thinks in maybe a decade, others reckon longer. A report from KPMG and the Centre for Automotive Research in Michigan concludes that it will come “sooner than you think”. And, when it does, the self-driving car, like the ordinary kind, could bring profound change.
Cars have always been about status as well as mobility; many people would still want to own a trophy car. These might not clock up much mileage, so carmakers would have to become more like fashion houses, constantly creating new designs to get people to swap their motors long before they have worn out. But cars that are driverless may not need steering wheels, pedals and other manual controls; and, being virtually crashless (most road accidents are due to human error), their bodies could be made much lighter. So makers would be able to turn out new models quicker and at lower cost. Fresh entrants to carmaking could prove nimbler than incumbents at adapting to this new world.
All these trends will affect the car business. But when mass-produced cars appeared, they had an impact on the whole of society. What might be the equivalent social implications of driverless cars? And who might go the same way as the buggy-whip makers? Electronics and software firms will be among the winners: besides providing all the sensors and computing power that self-driving cars will need, they will enjoy strong demand for in-car entertainment systems, since cars’ occupants will no longer need to keep their eyes on the road. Bus companies might run convoys of self-piloting coaches down the motorways, providing competition for intercity railways. Travelling salesmen might prefer to journey from city to city overnight in driverless Winnebagos packed with creature comforts. So, indeed, might some tourists. If so, they will need fewer hotel rooms.
Cabbies, lorry drivers and all others whose job is to steer a vehicle will have to find other work. The taxi and car-rental businesses might merge into one automated pick-up and drop-off service: GM has already shown a prototype of a two-seater, battery-powered pod that would scuttle about town, with passengers summoning it by smartphone. Supermarkets, department stores and shopping centres might provide these free, to attract customers. Driverless cars will be programmed to obey the law, which means, sadly, the demise of the traffic cop and the parking warden. And since automated cars will reduce the need for parking spaces in town, that will mean less revenue for local authorities and car-park operators.
When people are no longer in control of their cars they will not need driver insurance—so goodbye to motor insurers and brokers. Traffic accidents now cause about 2m hospital visits a year in America alone, so autonomous vehicles will mean much less work for emergency rooms and orthopaedic wards. Roads will need fewer signs, signals, guard rails and other features designed for the human driver; their makers will lose business too. When commuters can work, rest or play while the car steers itself, longer commutes will become more bearable, the suburbs will spread even farther and house prices in the sticks will rise. When self-driving cars can ferry children to and from school, more mothers may be freed to re-enter the workforce. The popularity of the country pub, which has been undermined by strict drink-driving laws, may be revived. And so on.
Getting there from here
All this may sound far-fetched. But the self-driving car is already arriving in dribs and drabs. Cars are on sale that cruise on autopilot, slot themselves into awkward parking spaces and brake automatically to avert collisions. Motorists seem ready to pay for such features, encouraging carmakers to keep working on them. The armed forces are also sponsoring research on autonomous vehicles. Some insurers offer discounts to drivers who put a black box in their cars to measure how safely they drive: as cars’ computers get better than humans at avoiding accidents, self-drive mode may become the norm, and manual driving uninsurable.
The first airline to operate a regular international schedule began in 1919, only 16 years after the Wright Brothers showed that people really could fly in heavier-than-air planes. For those businesses that stand to gain and lose from the driverless car, the future may arrive even quicker.
Economist.com/blogs/schumpeter

Newsweek’s future Goodbye ink

Newsweek’s future

Goodbye ink

Oct 18th 2012, 21:24 by A.E.S.

MOST 79-year-olds are haunted by fears of their own mortality. After some months of speculation, it was confirmed today that Newsweek, the American weekly, would not live to see its 80th birthday in its current form. The last print edition will be published on December 31st. In 2013 Newsweek will be rebranded Newsweek Global. It will run exclusively online and on tablet devices and will charge for content. A few articles will be available free on the Daily Beast, a website which merged with Newsweek in 2010 and does not have a paywall.

Newsweek must respond to two kinds of challenges: one shared with peers, the other unique to its ownership structure. Advertising revenue for print publications has softened along with the economy, and no one reading this blog needs reminding that more people are now looking to the internet for news. Newsweek’s total circulation dropped by more than 51% between 2007 and 2011, to around 1.5m.

But why stop printing so soon? This is where Newsweek’s owners come in. In 2010 the Washington Post sold Newsweek to Sidney Harman, a 92-year-old billionaire, for $1 and $47m in assumed liabilities. He died last year, and this summer his family announced that they would no longer invest in the magazine and the website. Barry Diller, a savvy media investor who runs IAC/InterActiveCorp and is the other owner of Newsweek, probably did not want to stomach the magazine’s losses alone. It will reportedly lose as much as $22m this year. The costs of running a digital publication are much lower. Some jobs will also be axed.
Tina Brown, the editor of the Daily Beast and Newsweek, and Baba Shetty, the boss of Newsweek Daily Beast Co., announced the closure today. They wrote online that they have “reached a tipping point at which we can most efficiently and effectively reach our readers in all-digital format.” The optimism partially stems from the popularity of tablet computers, which give news organisations hope that more readers will be willing to pay for news as long as it is portable. But it is unclear whether this model will work. Losses at the Daily, an iPad-only magazine launched by Rupert Murdoch’s News Corporation in February 2011, have piled up.
Newsweek’s digital reincarnation at least has the advantage that the brand is already well known. Print subscribers may elect to read it online, if they are not already doing so. Or they could migrate to all those websites that give away their content without a subscription fee—like the Daily Beast.

U.S. Open to Thais Inviting Burma to Observe Cobra Gold

Defense.gov News Article: U.S. Open to Thais Inviting Burma to Observe Cobra Gold

U.S. Open to Thais Inviting Burma to Observe Cobra Gold

By Jim Garamone
American Forces Press Service
WASHINGTON, Oct. 19, 2012 – The United States is open to considering a Thai request to allow a small contingent of Burmese military officers to attend the joint exercise Cobra Gold 2013 as observers, Pentagon Press Secretary George Little said today.
Thailand hosts the military exercise and in consultation with the United States will make the decision on whether to invite up to three Burmese officers to observe portions of the annual event.
If the invitation is extended, the Burmese observers will only participate in the humanitarian assistance/disaster response and military medical portions of the exercise.
Cobra Gold is a Thai-led exercise and is the largest Asia-based military exercise the United States participates in. Around 6,900 U.S. service members participated in Cobra Gold 2012 held in February.
There are two set of observers. The first is called multinational planning augmentation teams and include nations such as Singapore, Japan, South Korea, Malaysia and Indonesia.
The second category of observers consists of coalition observer liaison teams, and this would include Burma. This past year, coalition observer liaison teams came from Brunei, China, the Netherlands, Laos, New Zealand, Russia, South Africa, Sri Lanka and the United Arab Emirates.
The Burmese government has opened up over the past year. As part of a larger U.S. government effort, DOD representatives were part of a State Department-led visit to Burma earlier this month.
“That mission was focused primarily on human rights dialogue with the Burmese,” Little said. “We’re exploring opportunities to discuss a range of issues with the government of Burma.”



Thursday, 18 October 2012

U.S. Partners With Israel for Exercise Austere Challenge

U.S. Partners With Israel for Exercise Austere Challenge

10/17/2012 12:58 PM CDT

U.S. Partners With Israel for Exercise Austere Challenge

By Jim Garamone
American Forces Press Service
WASHINGTON, Oct. 17, 2012 - More than 3,500 American service members will join with Israeli allies for Exercise Austere Challenge 2012 in Israel next week, U.S. and Israeli officials said today.
The exercise will be conducted throughout Israel and off-shore, U.S. Air Force Lt. Gen. Craig A. Franklin and Israel Defense Forces Brig. Gen. Nitzan Nuriel said during a teleconference with reporters. Franklin commands the 3rd Air Force and is the senior U.S. commander for the exercise. Nuriel is the Israeli lead planner.
More than 1,000 U.S. military personnel are arriving in Israel for the exercise, Franklin said. "They will be in a variety of locations across the country for the next several weeks," he said. The exercise will build on the long-standing relationship between the two countries, test the cooperative missile defense of Israel, and promote regional stability.
U.S. service members will man Patriot anti-missile systems, an Aegis ballistic missile defense ship and various other air defense systems. The Israelis will put more than 1,000 service members into the field and will test the Iron Dome and Arrow 2 systems. The Israelis will also tie the developing David's Sling system into the scenarios.
Most of the three-week exercise will be simulation, but some training will entail live-fire, Nuriel said.
Austere Challenge 2012 is the largest U.S.-Israeli military exercise to date, Franklin said, and it is the latest in a long line of such exercises. The scenario for the exercise is not aimed at any specific threat or country in the region, both Franklin and Nuriel said.
"This exercise is purely about improving our combined U.S.-Israeli capabilities," the U.S. general said. "It's about military teamwork. It is not related to national elections nor any perceived tensions in the Middle East. We are military professionals coming together to train for a defensive mission."
The U.S. has pledged $30 million to the exercise and the Israelis pegged their exercise costs at 30 million shekels --around $7.9 million.

Biographies:
Air Force Lt. Gen. Craig A. Franklin
Related Sites:
Exercise Austere Challenge 2012
U.S. European Command
3rd Air Force

Inequality and the world economy: True Progressivism | The Economist

Inequality and the world economy: True Progressivism | The Economist

Inequality and the world economy

True Progressivism

A new form of radical centrist politics is needed to tackle inequality without hurting economic growth


BY THE end of the 19th century, the first age of globalisation and a spate of new inventions had transformed the world economy. But the “Gilded Age” was also a famously unequal one, with America’s robber barons and Europe’s “Downton Abbey” classes amassing huge wealth: the concept of “conspicuous consumption” dates back to 1899. The rising gap between rich and poor (and the fear of socialist revolution) spawned a wave of reforms, from Theodore Roosevelt’s trust-busting to Lloyd George’s People’s Budget. Governments promoted competition, introduced progressive taxation and wove the first threads of a social safety net. The aim of this new “Progressive era”, as it was known in America, was to make society fairer without reducing its entrepreneurial vim.
Modern politics needs to undergo a similar reinvention—to come up with ways of mitigating inequality without hurting economic growth. That dilemma is already at the centre of political debate, but it mostly produces heat, not light. Thus, on America’s campaign trail, the left attacks Mitt Romney as a robber baron and the right derides Barack Obama as a class warrior. In some European countries politicians have simply given in to the mob: witness François Hollande’s proposed 75% income-tax rate. In much of the emerging world leaders would rather sweep the issue of inequality under the carpet: witness China’s nervous embarrassment about the excesses of Ferrari-driving princelings, or India’s refusal to tackle corruption.
At the core, there is a failure of ideas. The right is still not convinced that inequality matters. The left’s default position is to raise income-tax rates for the wealthy and to increase spending still further—unwise when sluggish economies need to attract entrepreneurs and when governments, already far bigger than Roosevelt or Lloyd George could have imagined, are overburdened with promises of future largesse. A far more dramatic rethink is needed: call it True Progressivism.
To have or to have not
Does inequality really need to be tackled? The twin forces of globalisation and technical innovation have actually narrowed inequality globally, as poorer countries catch up with richer ones. But within many countries income gaps have widened. More than two-thirds of the world’s people live in countries where income disparities have risen since 1980, often to a startling degree. In America the share of national income going to the top 0.01% (some 16,000 families) has risen from just over 1% in 1980 to almost 5% now—an even bigger slice than the top 0.01% got in the Gilded Age.
It is also true that some measure of inequality is good for an economy. It sharpens incentives to work hard and take risks; it rewards the talented innovators who drive economic progress. Free-traders have always accepted that the more global a market, the greater the rewards will be for the winners. But as our special report this week argues, inequality has reached a stage where it can be inefficient and bad for growth.
That is most obvious in the emerging world. In China credit is siphoned to state-owned enterprises and well-connected insiders; the elite also gain from a string of monopolies. In Russia the oligarchs’ wealth has even less to do with entrepreneurialism. In India, too often, the same is true.
In the rich world the cronyism is better-hidden. One reason why Wall Street accounts for a disproportionate share of the wealthy is the implicit subsidy given to too-big-to-fail banks. From doctors to lawyers, many high-paying professions are full of unnecessary restrictive practices. And then there is the most unfair transfer of all—misdirected welfare spending. Social spending is often less about helping the poor than giving goodies to the relatively wealthy. In America the housing subsidy to the richest fifth (through mortgage-interest relief) is four times the amount spent on public housing for the poorest fifth.
Even the sort of inequality produced by meritocracy can hurt growth. If income gaps get wide enough, they can lead to less equality of opportunity, especially in education. Social mobility in America, contrary to conventional wisdom, is lower than in most European countries. The gap in test scores between rich and poor American children is roughly 30-40% wider than it was 25 years ago. And by some measures class mobility is even stickier in China than in America.
Some of those at the top of the pile will remain sceptical that inequality is a problem in itself. But even they have an interest in mitigating it, for if it continues to rise, momentum for change will build and may lead to a political outcome that serves nobody’s interests. Communism may be past reviving, but there are plenty of other bad ideas out there.
Hence the need for a True Progressive agenda. Here is our suggestion, which steals ideas from both left and right to tackle inequality in three ways that do not harm growth.
Compete, target and reform
The priority should be a Rooseveltian attack on monopolies and vested interests, be they state-owned enterprises in China or big banks on Wall Street. The emerging world, in particular, needs to introduce greater transparency in government contracts and effective anti-trust law. It is no coincidence that the world’s richest man, Carlos Slim, made his money in Mexican telecoms, an industry where competitive pressures were low and prices were sky-high. In the rich world there is also plenty of opening up to do. Only a fraction of the European Union’s economy is a genuine single market. School reform and introducing choice is crucial: no Wall Street financier has done as much damage to American social mobility as the teachers’ unions have. Getting rid of distortions, such as labour laws in Europe or the remnants of China’s hukou system of household registration, would also make a huge difference.
Next, target government spending on the poor and the young. In the emerging world too much cash goes to universal fuel subsidies that disproportionately favour the wealthy (in Asia) and unaffordable pensions that favour the relatively affluent (in Latin America). But the biggest target for reform is the welfare states of the rich world. Given their ageing societies, governments cannot hope to spend less on the elderly, but they can reduce the pace of increase—for instance, by raising retirement ages more dramatically and means-testing the goodies on offer. Some of the cash could go into education. The first Progressive era led to the introduction of publicly financed secondary schools; this time round the target should be pre-school education, as well as more retraining for the jobless.
Last, reform taxes: not to punish the rich but to raise money more efficiently and progressively. In poorer economies, where tax avoidance is rife, the focus should be on lower rates and better enforcement. In rich ones the main gains should come from eliminating deductions that particularly benefit the wealthy (such as America’s mortgage-interest deduction); narrowing the gap between tax rates on wages and capital income; and relying more on efficient taxes that are paid disproportionately by the rich, such as some property taxes.
Different parts of this agenda are already being embraced in different countries. Latin America has invested in schools and pioneered conditional cash transfers for the very poor; it is the only region where inequality in most countries has been falling. India and Indonesia are considering scaling back fuel subsidies. More generally, as they build their welfare states, Asian countries are determined to avoid the West’s extravagance. In the rich world Scandinavia is the most inventive region. Sweden has overhauled its admittedly huge welfare state and has a universal school-voucher system. Britain too is reforming schools and simplifying welfare. In America Mr Romney says he wants to means-test Medicare and cut tax deductions, though he is short on details. Meanwhile, Mr Obama, a Democrat, has invoked Theodore Roosevelt, and Ed Miliband, leader of Britain’s Labour Party, is now trying to wrap himself in Benjamin Disraeli’s “One Nation” Tory cloak.
Such cross-dressing is a sign of change, but politicians have a long way to go. The right’s instinct is too often to make government smaller, rather than better. The supposedly egalitarian left’s failure is more fundamental. Across the rich world, welfare states are running out of money, growth is slowing and inequality is rising—and yet the left’s only answer is higher tax rates on wealth-creators. Messrs Obama, Miliband and Hollande need to come up with something that promises both fairness and progress. Otherwise, everyone will pay.