Medvedev: Russia To Rearm Fleet, Army From 2011
Mar 17, 2009
MOSCOW (AFP)--President Dmitry Medvedev said Tuesday the North Atlantic Treaty Organization was still seeking to expand its physical presence near Russian borders and ordered a "large-scale" Russian rearmament from 2011.
"From 2011 a large-scale rearmament of the army and navy will begin," Medvedev was quoted by news agencies as saying at a meeting of military chiefs in Moscow.
He called for a renewal of Russia's nuclear weapons arsenal and said NATO was pursuing military expansion near Russia's borders.
"Analysis of the military-political situation in the world shows that a serious conflict potential remains in some regions," Medvedev said.
He listed local crises and international terrorism as persistent security threats and also stated: "Attempts to expand the military infrastructure of NATO near the borders of our country are continuing.
"The primary task is to increase the combat readiness of our forces, first of all our strategic nuclear forces. They must be able to fulfill all tasks necessary to ensure Russia's security," Medvedev said.
The comments came despite statements by the Russian leadership suggesting a thaw in relations with the U.S. following the end of the George W. Bush administration and the inauguration of President Barack Obama.
Some analysts have detected a softening of U.S. support for NATO enlargement to ex-Soviet countries on Russia's borders such as Georgia and Ukraine.
The Obama administration has said it is weighing what to do about a Bush-era project to build missile defense facilities in eastern Europe that has angered Moscow.
Russia, the world's largest country and one of a handful of nuclear-armed states, is attempting to slim down and improve its military, which currently numbers about 1 million personnel.
At Tuesday's meeting Defense Minister Anatoly Serdyukov said a host of non- core activity, from guest house management to weapons repair and food production, would be transferred from the Defense Ministry to a state-owned civilian company, Oboronservis.
Tuesday, March 17, 2009
China Gains Key Assets In Spate of Purchases
China Gains Key Assets In Spate of Purchases. By Ariana Eunjung Cha
Oil, Minerals Are Among Acquisitions Worldwide
Washington Post, Tuesday, March 17, 2009; Page A01
SHANGHAI -- Chinese companies have been on a shopping spree in the past month, snapping up tens of billions of dollars' worth of key assets in Iran, Brazil, Russia, Venezuela, Australia and France in a global fire sale set off by the financial crisis.
The deals have allowed China to lock up supplies of oil, minerals, metals and other strategic natural resources it needs to continue to fuel its growth. The sheer scope of the agreements marks a shift in global finance, roiling energy markets and feeding worries about the future availability and prices of those commodities in other countries that compete for them, including the United States.
Just a few months ago, many countries were greeting such overtures from China with suspicion. Today, as corporations and banks in other parts of the world find themselves reluctant or unable to give out money to distressed companies, cash-rich China has become a major force driving new lending and investment.
On Feb. 12, China's state-owned metals giant Chinalco signed a $19.5 billion deal with Australia's Rio Tinto that will eventually double its stake in the world's second-largest mining company.
In three other cases, China has used loans as a way of securing energy supplies. On Feb. 17 and 18, China National Petroleum signed separate agreements with Russia and Venezuela under which China would provide $25 billion and $4 billion in loans, respectively, in exchange for long-term commitments to supply oil. And on Feb. 19, the China Development Bank struck a similar deal with Petrobras, the Brazilian oil company, agreeing to a loan of $10 billion in exchange for oil.
On Saturday, Iran announced that it had signed a $3.2 billion agreement with a Chinese consortium to develop an area beneath the Persian Gulf seabed that is believed to hold about 8 percent of the world's reserves of natural gas.
Even as global financial flows have slowed sharply overall, China has dramatically stepped up its outbound investment. In 2008, its overseas mergers and acquisitions were worth $52.1 billion -- a record, according to the research firm Dealogic. In January and February of this year, Chinese companies invested $16.3 billion abroad, meaning that if the pace holds, the total for 2009 could be nearly double last year's.
Worldwide, the value of mergers and acquisitions transactions so far this year has dropped 35 percent to $384 billion. By comparison, the United States had $186.2 billion in outbound mergers and acquisitions in 2008 and Japan had $74.3 billion.
China's state-run media outlets are calling the acquisition spree an opportunity that comes once in a hundred years, and analysts are drawing parallels to 1980s Japan.
"That China started investing or acquiring some overseas mineral resources companies with relatively low prices during the global economic crisis is quite a normal practice. Japan did the same thing in its prime development period, too," said Xu Xiangchun, consulting director for Mysteel.com, a market research and analysis firm.
It's not just Chinese corporations that are taking advantage of the economic crisis to help others while helping themselves.
The Chinese government also has come to the rescue of ailing countries, such as Jamaica and Pakistan, that it wants as allies, extending generous loans. Even Chinese consumers are taking their money abroad. In a shopping trip last month organized by an online real estate brokerage, a group of 50 individual investors from China traveled to New York, Los Angeles and San Francisco to purchase homes at prices that have crashed since the subprime crisis.
"As soon as we launched the project, we had 100 people registered and ready to go," said Dai Jianzhong, chief executive of SouFun Holdings, which organized the trip. "Now the number has reached 400. Apparently, the American real estate market has a great appeal to Chinese buyers."
China's Commerce Ministry organized a similar shopping expedition -- but for Chinese companies to visit foreign companies -- the week of Feb. 25. Commerce Minister Chen Deming took with him about 90 executives, who signed contracts worth about $10 billion in Germany, $400,000 in Switzerland, $320 million in Spain and $2 billion in Britain. The deals were mostly for the purchase of goods, including olive oil, 3,000 Jaguars and 10,000 Land Rovers.
The Commerce Ministry said Monday that it intends to send more investment missions abroad this year. Although details are still being worked out, the itineraries will probably include the United States, Japan and Southeast Asia, the ministry said.
Foreign automakers may be next on China's acquisitions list.
On Feb. 23, Weichai Power, a diesel engine company, said it would spend about $3.8 million to acquire the products, technology and brand of France's Moteurs Baudouin, which designs and manufactures marine propulsive equipment such as engines and propellers.
That was a relatively small deal, but Chen Bin, director general of the National Development and Reform Commission's Department of Industry, hinted that larger acquisitions may be in the works. He noted on the sidelines of a news conference on the economy late last month that overseas car companies are facing cash difficulties at the same time their Chinese counterparts "need their technology, brands, talent and sales networks."
"It will be a very big challenge for Chinese companies to stabilize the operations of foreign automakers and to maintain growth," Chen acknowledged, according to the official People's Daily, but he added that if the companies decide to acquire such assets, "the government will support them."
The one country that appears conspicuously absent from China's corporate bargain-hunting spree is the United States.
Many Chinese investors are still stung by the memory of China National Offshore Oil's 2005 attempt to buy a stake in the U.S. energy company Unocal. The deal fell apart after U.S. lawmakers expressed concern about the national security implications of China controlling some of the country's oil resources.
Xiong Weiping, president of Chinalco, whose bid for a larger stake in Rio Tinto is China's biggest outbound investment to date, has taken measures to address concerns as scrutiny of that deal has increased. The deal will be put to a shareholder vote in May or June and must also be approved by Australia's Foreign Investment Review Board.
At a news briefing in Sydney on March 2, Xiong assured the country that Chinalco is not seeking a majority share of the mining giant and that its management and corporate strategy would not change. Xiong emphasized that "the transaction will in no way lead to any control of the natural resources of Australia."
Zha Daojiong, an energy researcher at Peking University, said Chinese companies feel they may be discriminated against in the United States because of the mistaken perception that they are all state-owned or state-directed.
"Foreigners question these companies' intentions and tend to link their moves with government instructions," Zha said, "but I should say it is really hard to tell whether this is true nor not."
Researchers Wang Juan and Liu Liu in Beijing contributed to this report.
Oil, Minerals Are Among Acquisitions Worldwide
Washington Post, Tuesday, March 17, 2009; Page A01
SHANGHAI -- Chinese companies have been on a shopping spree in the past month, snapping up tens of billions of dollars' worth of key assets in Iran, Brazil, Russia, Venezuela, Australia and France in a global fire sale set off by the financial crisis.
The deals have allowed China to lock up supplies of oil, minerals, metals and other strategic natural resources it needs to continue to fuel its growth. The sheer scope of the agreements marks a shift in global finance, roiling energy markets and feeding worries about the future availability and prices of those commodities in other countries that compete for them, including the United States.
Just a few months ago, many countries were greeting such overtures from China with suspicion. Today, as corporations and banks in other parts of the world find themselves reluctant or unable to give out money to distressed companies, cash-rich China has become a major force driving new lending and investment.
On Feb. 12, China's state-owned metals giant Chinalco signed a $19.5 billion deal with Australia's Rio Tinto that will eventually double its stake in the world's second-largest mining company.
In three other cases, China has used loans as a way of securing energy supplies. On Feb. 17 and 18, China National Petroleum signed separate agreements with Russia and Venezuela under which China would provide $25 billion and $4 billion in loans, respectively, in exchange for long-term commitments to supply oil. And on Feb. 19, the China Development Bank struck a similar deal with Petrobras, the Brazilian oil company, agreeing to a loan of $10 billion in exchange for oil.
On Saturday, Iran announced that it had signed a $3.2 billion agreement with a Chinese consortium to develop an area beneath the Persian Gulf seabed that is believed to hold about 8 percent of the world's reserves of natural gas.
Even as global financial flows have slowed sharply overall, China has dramatically stepped up its outbound investment. In 2008, its overseas mergers and acquisitions were worth $52.1 billion -- a record, according to the research firm Dealogic. In January and February of this year, Chinese companies invested $16.3 billion abroad, meaning that if the pace holds, the total for 2009 could be nearly double last year's.
Worldwide, the value of mergers and acquisitions transactions so far this year has dropped 35 percent to $384 billion. By comparison, the United States had $186.2 billion in outbound mergers and acquisitions in 2008 and Japan had $74.3 billion.
China's state-run media outlets are calling the acquisition spree an opportunity that comes once in a hundred years, and analysts are drawing parallels to 1980s Japan.
"That China started investing or acquiring some overseas mineral resources companies with relatively low prices during the global economic crisis is quite a normal practice. Japan did the same thing in its prime development period, too," said Xu Xiangchun, consulting director for Mysteel.com, a market research and analysis firm.
It's not just Chinese corporations that are taking advantage of the economic crisis to help others while helping themselves.
The Chinese government also has come to the rescue of ailing countries, such as Jamaica and Pakistan, that it wants as allies, extending generous loans. Even Chinese consumers are taking their money abroad. In a shopping trip last month organized by an online real estate brokerage, a group of 50 individual investors from China traveled to New York, Los Angeles and San Francisco to purchase homes at prices that have crashed since the subprime crisis.
"As soon as we launched the project, we had 100 people registered and ready to go," said Dai Jianzhong, chief executive of SouFun Holdings, which organized the trip. "Now the number has reached 400. Apparently, the American real estate market has a great appeal to Chinese buyers."
China's Commerce Ministry organized a similar shopping expedition -- but for Chinese companies to visit foreign companies -- the week of Feb. 25. Commerce Minister Chen Deming took with him about 90 executives, who signed contracts worth about $10 billion in Germany, $400,000 in Switzerland, $320 million in Spain and $2 billion in Britain. The deals were mostly for the purchase of goods, including olive oil, 3,000 Jaguars and 10,000 Land Rovers.
The Commerce Ministry said Monday that it intends to send more investment missions abroad this year. Although details are still being worked out, the itineraries will probably include the United States, Japan and Southeast Asia, the ministry said.
Foreign automakers may be next on China's acquisitions list.
On Feb. 23, Weichai Power, a diesel engine company, said it would spend about $3.8 million to acquire the products, technology and brand of France's Moteurs Baudouin, which designs and manufactures marine propulsive equipment such as engines and propellers.
That was a relatively small deal, but Chen Bin, director general of the National Development and Reform Commission's Department of Industry, hinted that larger acquisitions may be in the works. He noted on the sidelines of a news conference on the economy late last month that overseas car companies are facing cash difficulties at the same time their Chinese counterparts "need their technology, brands, talent and sales networks."
"It will be a very big challenge for Chinese companies to stabilize the operations of foreign automakers and to maintain growth," Chen acknowledged, according to the official People's Daily, but he added that if the companies decide to acquire such assets, "the government will support them."
The one country that appears conspicuously absent from China's corporate bargain-hunting spree is the United States.
Many Chinese investors are still stung by the memory of China National Offshore Oil's 2005 attempt to buy a stake in the U.S. energy company Unocal. The deal fell apart after U.S. lawmakers expressed concern about the national security implications of China controlling some of the country's oil resources.
Xiong Weiping, president of Chinalco, whose bid for a larger stake in Rio Tinto is China's biggest outbound investment to date, has taken measures to address concerns as scrutiny of that deal has increased. The deal will be put to a shareholder vote in May or June and must also be approved by Australia's Foreign Investment Review Board.
At a news briefing in Sydney on March 2, Xiong assured the country that Chinalco is not seeking a majority share of the mining giant and that its management and corporate strategy would not change. Xiong emphasized that "the transaction will in no way lead to any control of the natural resources of Australia."
Zha Daojiong, an energy researcher at Peking University, said Chinese companies feel they may be discriminated against in the United States because of the mistaken perception that they are all state-owned or state-directed.
"Foreigners question these companies' intentions and tend to link their moves with government instructions," Zha said, "but I should say it is really hard to tell whether this is true nor not."
Researchers Wang Juan and Liu Liu in Beijing contributed to this report.
Congress Is the Real Systemic Risk
Congress Is the Real Systemic Risk. By Peter J Wallison
WSJ, Mar 17, 2009
After their experience with Fannie Mae and Freddie Mac, you'd think that Congress would no longer be interested in creating companies seen by the market as backed by the government. Yet that is exactly what the relevant congressional committees -- the Senate Banking Committee and the House Financial Services Committee -- are now considering.
In the wake of the financial crisis, the idea rapidly gaining strength in Washington is to create a systemic risk regulator. The principal sponsor of the plan is Barney Frank, the chair of the House Financial Services Committee. A recent report by the Group of Thirty (a private sector organization of financial regulation specialists), written by a subcommittee headed by Paul Volcker, also endorsed the idea, as has the U.S. Chamber of Commerce and the Securities Industry Financial Markets Association.
If implemented, this would give the government the authority to designate and supervise "systemically significant" companies. Presumably, systemically significant companies would be those that are so large, or involved in financial activities of such importance, that their failure would create systemic risk.
There are several serious problems with this plan, beginning with the fact that no one can define a systemic risk or its causes. The Congressional Oversight Panel, which was established to advise Congress on the use of the TARP funds, concluded -- with two Republicans dissenting -- that the current crisis is an example of a systemic risk evolving into a true systemic event. After all, virtually all the world's major financial institutions are seriously weakened, and many have either failed or been rescued. If this is not an example of a systemic risk, what is?
The current financial crisis is certainly systemic. But what caused it? The failure of Lehman Brothers occurred long after the market for mortgage-backed securities (MBS) had shut down, and six months after Bear Stearns had to be rescued because of its losses. In other words, the crisis did not arise from the failure of a particular systemically significant institution. The world's major financial institutions had already been weakened by the realization that losses on trillions of dollars in MBS were going to be much greater than anyone had imagined, and before the major asset write-downs had begun. So if this was a systemic event, it was not caused by the failure of one or more major institutions. In fact, it was the other way around: The weakness or failure of financial institutions was the result of an external event (losses on trillions of dollars of subprime mortgages embedded in MBS).
If this is true, what is the value of regulating systemically significant financial institutions? Financial failures, it seems, can be the result, rather than the cause, of systemic events like the one we are now experiencing. Even if we assume that regulating systemically significant companies will somehow prevent them from failing -- a doubtful proposition, given that the heavily regulated banks have been the most severely affected by the current crisis -- we will not have prevented the collapse of a major oil-supplying country, an earthquake or a pandemic from causing a similar problem in the future. All we will have done is given some government agency more power and imposed more costs on financial institutions and consumers.
But increased government power and higher costs are not the worst elements of the proposal to designate and supervise systemically significant companies. The worst result is that we will create an unlimited number of financial institutions that, like Fannie Mae and Freddie Mac, will be seen in the financial markets as backed by the government. This will be especially true if, as Mr. Frank has recommended, the Federal Reserve is given supervisory authority over these institutions. The Fed already has the power -- without a vote of Congress -- to provide financing under "exigent circumstances" to any company, and will no doubt be able to do so for the institutions it supervises.
A company that is designated as systemically significant will inevitably come to be viewed as having government backing. After all, the designation occurs because some government agency believes that the failure of a particular institution will have a highly adverse effect on the rest of the financial system. Accordingly, designation as a systemically significant company will in effect be a government declaration that that company is too big to fail. The market will understand -- as it did with Fannie and Freddie -- that loans to such a company will involve less risk than loans to its competitors. Counterparties and customers will believe that transactions with the company will generally be more secure than transactions with other firms that aren't similarly protected from failure.
As a consequence, the effect on competition will be profound. Financial institutions that are not large enough to be designated as systemically significant will gradually lose out in the marketplace to the larger companies that are perceived to have government backing, just as Fannie and Freddie were able to drive banks and others from the secondary market for prime middle-class mortgages. A small group of government-backed financial institutions will thus come to dominate all sectors of finance in the U.S. And when that happens they shall be called by a special name: winners.
Mr. Wallison is a fellow at the American Enterprise Institute.
WSJ, Mar 17, 2009
After their experience with Fannie Mae and Freddie Mac, you'd think that Congress would no longer be interested in creating companies seen by the market as backed by the government. Yet that is exactly what the relevant congressional committees -- the Senate Banking Committee and the House Financial Services Committee -- are now considering.
In the wake of the financial crisis, the idea rapidly gaining strength in Washington is to create a systemic risk regulator. The principal sponsor of the plan is Barney Frank, the chair of the House Financial Services Committee. A recent report by the Group of Thirty (a private sector organization of financial regulation specialists), written by a subcommittee headed by Paul Volcker, also endorsed the idea, as has the U.S. Chamber of Commerce and the Securities Industry Financial Markets Association.
If implemented, this would give the government the authority to designate and supervise "systemically significant" companies. Presumably, systemically significant companies would be those that are so large, or involved in financial activities of such importance, that their failure would create systemic risk.
There are several serious problems with this plan, beginning with the fact that no one can define a systemic risk or its causes. The Congressional Oversight Panel, which was established to advise Congress on the use of the TARP funds, concluded -- with two Republicans dissenting -- that the current crisis is an example of a systemic risk evolving into a true systemic event. After all, virtually all the world's major financial institutions are seriously weakened, and many have either failed or been rescued. If this is not an example of a systemic risk, what is?
The current financial crisis is certainly systemic. But what caused it? The failure of Lehman Brothers occurred long after the market for mortgage-backed securities (MBS) had shut down, and six months after Bear Stearns had to be rescued because of its losses. In other words, the crisis did not arise from the failure of a particular systemically significant institution. The world's major financial institutions had already been weakened by the realization that losses on trillions of dollars in MBS were going to be much greater than anyone had imagined, and before the major asset write-downs had begun. So if this was a systemic event, it was not caused by the failure of one or more major institutions. In fact, it was the other way around: The weakness or failure of financial institutions was the result of an external event (losses on trillions of dollars of subprime mortgages embedded in MBS).
If this is true, what is the value of regulating systemically significant financial institutions? Financial failures, it seems, can be the result, rather than the cause, of systemic events like the one we are now experiencing. Even if we assume that regulating systemically significant companies will somehow prevent them from failing -- a doubtful proposition, given that the heavily regulated banks have been the most severely affected by the current crisis -- we will not have prevented the collapse of a major oil-supplying country, an earthquake or a pandemic from causing a similar problem in the future. All we will have done is given some government agency more power and imposed more costs on financial institutions and consumers.
But increased government power and higher costs are not the worst elements of the proposal to designate and supervise systemically significant companies. The worst result is that we will create an unlimited number of financial institutions that, like Fannie Mae and Freddie Mac, will be seen in the financial markets as backed by the government. This will be especially true if, as Mr. Frank has recommended, the Federal Reserve is given supervisory authority over these institutions. The Fed already has the power -- without a vote of Congress -- to provide financing under "exigent circumstances" to any company, and will no doubt be able to do so for the institutions it supervises.
A company that is designated as systemically significant will inevitably come to be viewed as having government backing. After all, the designation occurs because some government agency believes that the failure of a particular institution will have a highly adverse effect on the rest of the financial system. Accordingly, designation as a systemically significant company will in effect be a government declaration that that company is too big to fail. The market will understand -- as it did with Fannie and Freddie -- that loans to such a company will involve less risk than loans to its competitors. Counterparties and customers will believe that transactions with the company will generally be more secure than transactions with other firms that aren't similarly protected from failure.
As a consequence, the effect on competition will be profound. Financial institutions that are not large enough to be designated as systemically significant will gradually lose out in the marketplace to the larger companies that are perceived to have government backing, just as Fannie and Freddie were able to drive banks and others from the secondary market for prime middle-class mortgages. A small group of government-backed financial institutions will thus come to dominate all sectors of finance in the U.S. And when that happens they shall be called by a special name: winners.
Mr. Wallison is a fellow at the American Enterprise Institute.
Taiwan's New Defense Report Could Fray Ties With China
Taiwan's New Defense Report Could Fray Ties With China. By Ting-I Tsai
WSJ, Mar 17, 2009, page A9
TAIPEI -- Taiwan issued a defense report that calls for the island to press for modern military equipment from the U.S. -- a move that could complicate the warming relations both Taiwan and the U.S. have been cultivating with China.
The quadrennial military review, issued Monday, runs counter to softer, more China-friendly draft versions that circulated in Taiwan over the past few months. Some officials said the harder line is a response to criticism in Taipei and Washington that the current administration in Taiwan had been making too many concessions to China without having received much in return.
"The report is tougher than I expected," said Alexander Huang, a strategic studies professor at Tamkang University in Taipei, who was involved in earlier versions of the paper.
Taiwan and China have been ruled separately for more than 60 years, since China's civil war, and have become close trading partners. Under President Ma Ying-jeou, who was elected a year ago, the two sides have moved closer, setting up direct transport flights and shipping links and discussing a possible free-trade deal. On Monday, relations across the Taiwan Strait marked a new milestone when the Ocean Mystery, the first luxury cruise ship to sail directly from China, arrived in Taiwan with more than 1,000 Chinese tourists.
Perhaps the most notable sign of improving ties was a government defense paper endorsed by Mr. Ma that called for democratically governed Taiwan, a hub of the global high-tech industry, to give up its longtime strategy of preventing a Chinese attack by maintaining air and sea superiority. Instead, Taiwan would concentrate its defenses against a ground assault, according to the paper.
Supporters said the proposed strategy would be less costly for Taiwan and the weapons easier to obtain. In deference to China, few countries are willing to sell Taiwan weapons. Opponents said it would be nearly suicidal for the island of 23 million to fight a land war with its giant neighbor.
"Critics from the military and academia forced President Ma to emphasize that the navy and air force are both important," said a senior official from the Ministry of National Defense.
A presidential spokesman said: "President Ma fully respects professionals on this issue."
Under Monday's plan, Taiwan will try again to buy 66 F-16 C/D fighters from the U.S. These are more advanced versions of the F-16 that Taiwan has and would allow it to more effectively counter China's growing fleet of Russian-built warplanes. Last year, the Bush administration agreed to a US$6.43 billion arms package but excluded the fighters. China reacted by suspending military-to-military talks with the U.S., though they since have resumed.
Taiwan will formally request the fighters again, officials in Tapei said Monday, and in the long term try to buy "stealth" technology fighters. Taiwan also wants to buy submarines -- another item vetoed by the Bush administration. In an effort to balance this with more China-friendly policies, the paper calls for a "confidence-building mechanism" with China. Some officials have said this could involve officer exchanges.
Although the Obama administration is eager to improve relations with Beijing, some officials in Washington have implied that weapons sales are in the U.S.'s national interest. In testimony to Congress in February, National Intelligence Director Dennis Blair said the U.S. was the only outside power that could help Taiwan: "That means we're going to have to help them some more in order to maintain a balance."
Some U.S.-based analysts say sales would help maintain the balance of power in the region. That would reduce the need for American soldiers to defend Taiwan in case China tries to invade.
"If Taiwan is unable to deter attacks from China, it increases the probability of the U.S. having to confront China militarily should China make a mistake," said Rick Fisher, a senior fellow at the International Assessment and Strategy Center in Washington.
WSJ, Mar 17, 2009, page A9
TAIPEI -- Taiwan issued a defense report that calls for the island to press for modern military equipment from the U.S. -- a move that could complicate the warming relations both Taiwan and the U.S. have been cultivating with China.
The quadrennial military review, issued Monday, runs counter to softer, more China-friendly draft versions that circulated in Taiwan over the past few months. Some officials said the harder line is a response to criticism in Taipei and Washington that the current administration in Taiwan had been making too many concessions to China without having received much in return.
"The report is tougher than I expected," said Alexander Huang, a strategic studies professor at Tamkang University in Taipei, who was involved in earlier versions of the paper.
Taiwan and China have been ruled separately for more than 60 years, since China's civil war, and have become close trading partners. Under President Ma Ying-jeou, who was elected a year ago, the two sides have moved closer, setting up direct transport flights and shipping links and discussing a possible free-trade deal. On Monday, relations across the Taiwan Strait marked a new milestone when the Ocean Mystery, the first luxury cruise ship to sail directly from China, arrived in Taiwan with more than 1,000 Chinese tourists.
Perhaps the most notable sign of improving ties was a government defense paper endorsed by Mr. Ma that called for democratically governed Taiwan, a hub of the global high-tech industry, to give up its longtime strategy of preventing a Chinese attack by maintaining air and sea superiority. Instead, Taiwan would concentrate its defenses against a ground assault, according to the paper.
Supporters said the proposed strategy would be less costly for Taiwan and the weapons easier to obtain. In deference to China, few countries are willing to sell Taiwan weapons. Opponents said it would be nearly suicidal for the island of 23 million to fight a land war with its giant neighbor.
"Critics from the military and academia forced President Ma to emphasize that the navy and air force are both important," said a senior official from the Ministry of National Defense.
A presidential spokesman said: "President Ma fully respects professionals on this issue."
Under Monday's plan, Taiwan will try again to buy 66 F-16 C/D fighters from the U.S. These are more advanced versions of the F-16 that Taiwan has and would allow it to more effectively counter China's growing fleet of Russian-built warplanes. Last year, the Bush administration agreed to a US$6.43 billion arms package but excluded the fighters. China reacted by suspending military-to-military talks with the U.S., though they since have resumed.
Taiwan will formally request the fighters again, officials in Tapei said Monday, and in the long term try to buy "stealth" technology fighters. Taiwan also wants to buy submarines -- another item vetoed by the Bush administration. In an effort to balance this with more China-friendly policies, the paper calls for a "confidence-building mechanism" with China. Some officials have said this could involve officer exchanges.
Although the Obama administration is eager to improve relations with Beijing, some officials in Washington have implied that weapons sales are in the U.S.'s national interest. In testimony to Congress in February, National Intelligence Director Dennis Blair said the U.S. was the only outside power that could help Taiwan: "That means we're going to have to help them some more in order to maintain a balance."
Some U.S.-based analysts say sales would help maintain the balance of power in the region. That would reduce the need for American soldiers to defend Taiwan in case China tries to invade.
"If Taiwan is unable to deter attacks from China, it increases the probability of the U.S. having to confront China militarily should China make a mistake," said Rick Fisher, a senior fellow at the International Assessment and Strategy Center in Washington.
IER president on carbon taxes
A Taxing Debate, by Thomas J. Pyle
Planet Gore, Monday, March 16, 2009
Economists rarely agree on the past, and never on the future. But in the present debate over carbon taxes, a strange consensus is starting to form around the idea that a national tax on carbon is better than installing an economy-wide cap on it.
Maybe so. But being "better" than cap-and-trade doesn't make a carbon tax a worthwhile public investment. Black bears are less dangerous than grizzly bears; neither should be let loose in the subway. Just as we shouldn't let the perfect be the enemy of the good, we shouldn't let the horrendous serve as a justification for the horrible.
Well-intentioned proponents of the carbon tax call it "equitable and fair." It's "straightforward and upfront" — even its detractors admit that. And the coup de grâce: "It's budget neutral."
Here's how it's supposed to work: The federal government conjures a carbon-tax rate it believes will incent the American public to use, generate, and emit less of the stuff. To offset that new levy, the government reduces by a corresponding amount its tax-related take on things we desperately need right now: jobs, investment, and income. A revenue-neutral carbon tax, its advocates say, will create new jobs, generate new wealth, and save the planet, to boot.
The problem is, being revenue neutral from the government's point-of-view doesn't make a carbon tax revenue neutral for American families. Even if the government reduces income taxes to offset the imposition of a carbon tax, that tax will immediately increase the cost of nearly everything that's produced, consumed, manufactured, or transported — including and especially food and fuel.
And what of the nearly 40 percent of the public that doesn't pay taxes on its income? How are they made whole under a carbon tax system that's "offset" by tax reductions elsewhere? If government were to reduce payroll taxes rather than income taxes to achieve budget neutrality, how would we cover the ballooning obligations of our entitlement programs for retirees? A plan that would rob Peter to pay Paul is bad enough; robbing Mildred to subsidize Moonbat represents the height of irresponsibility.
Still, a growing number of economists — left, right, and middle — agree that a straight carbon tax makes more sense than cap and trade. Their fundamental contention is that it's more transparent, more understandable, and subject to less political manipulation than a purposefully opaque, intentionally unwieldy cap-and-trade regime. All good points. And irrelevant ones.
Why? Because the carbon tax is being sold as a means to reduce the concentration of atmospheric carbon dioxide, and thus to slow the pace and intensity of our world's changing climate. But America's share of the world's total CO2 emissions is getting smaller and smaller by the year, as developing nations' share continues to grow. The trend lines are so pronounced that if the U.S. were to halt its use of hydrocarbons today, the increase in carbon emissions from the rest of the world would replace our emissions in fewer than eight years. If we adopted a more modest approach - ban all cars, for instance - the rest of the world would replace our transportation emissions in less than two years.
And since Congress is powerless to levy a carbon tax on other countries, a unilateral, preemptive strike on carbon would only erode our ability to compete economically, without doing anything meaningful thing to change the composition of our air or the quality of our environment.
China and India will be happy to meet us half-way on at least one crucial consideration: they're more than willing to take the jobs America hemorrhages if we go it alone on carbon taxation. Government accountants can call the plan "budget neutral," but the labor department's monthly unemployment reports will have the final say on whether it is "job neutral."
Are the American people willing — or able — to set aside trillions of dollars to support a plan that cannot work without global participation? The very least we should expect from our elected leaders is a grown-up discussion about what it will all cost, what we'll get in return, and whether or not we can afford it right now. Or ever.
Those who support cap-and-trade have refused to engage in that discussion from the start. Carbon-tax supporters have been more up front. But that doesn't mean they're right.
— Thomas J. Pyle is president of the Institute for Energy Research
Planet Gore, Monday, March 16, 2009
Economists rarely agree on the past, and never on the future. But in the present debate over carbon taxes, a strange consensus is starting to form around the idea that a national tax on carbon is better than installing an economy-wide cap on it.
Maybe so. But being "better" than cap-and-trade doesn't make a carbon tax a worthwhile public investment. Black bears are less dangerous than grizzly bears; neither should be let loose in the subway. Just as we shouldn't let the perfect be the enemy of the good, we shouldn't let the horrendous serve as a justification for the horrible.
Well-intentioned proponents of the carbon tax call it "equitable and fair." It's "straightforward and upfront" — even its detractors admit that. And the coup de grâce: "It's budget neutral."
Here's how it's supposed to work: The federal government conjures a carbon-tax rate it believes will incent the American public to use, generate, and emit less of the stuff. To offset that new levy, the government reduces by a corresponding amount its tax-related take on things we desperately need right now: jobs, investment, and income. A revenue-neutral carbon tax, its advocates say, will create new jobs, generate new wealth, and save the planet, to boot.
The problem is, being revenue neutral from the government's point-of-view doesn't make a carbon tax revenue neutral for American families. Even if the government reduces income taxes to offset the imposition of a carbon tax, that tax will immediately increase the cost of nearly everything that's produced, consumed, manufactured, or transported — including and especially food and fuel.
And what of the nearly 40 percent of the public that doesn't pay taxes on its income? How are they made whole under a carbon tax system that's "offset" by tax reductions elsewhere? If government were to reduce payroll taxes rather than income taxes to achieve budget neutrality, how would we cover the ballooning obligations of our entitlement programs for retirees? A plan that would rob Peter to pay Paul is bad enough; robbing Mildred to subsidize Moonbat represents the height of irresponsibility.
Still, a growing number of economists — left, right, and middle — agree that a straight carbon tax makes more sense than cap and trade. Their fundamental contention is that it's more transparent, more understandable, and subject to less political manipulation than a purposefully opaque, intentionally unwieldy cap-and-trade regime. All good points. And irrelevant ones.
Why? Because the carbon tax is being sold as a means to reduce the concentration of atmospheric carbon dioxide, and thus to slow the pace and intensity of our world's changing climate. But America's share of the world's total CO2 emissions is getting smaller and smaller by the year, as developing nations' share continues to grow. The trend lines are so pronounced that if the U.S. were to halt its use of hydrocarbons today, the increase in carbon emissions from the rest of the world would replace our emissions in fewer than eight years. If we adopted a more modest approach - ban all cars, for instance - the rest of the world would replace our transportation emissions in less than two years.
And since Congress is powerless to levy a carbon tax on other countries, a unilateral, preemptive strike on carbon would only erode our ability to compete economically, without doing anything meaningful thing to change the composition of our air or the quality of our environment.
China and India will be happy to meet us half-way on at least one crucial consideration: they're more than willing to take the jobs America hemorrhages if we go it alone on carbon taxation. Government accountants can call the plan "budget neutral," but the labor department's monthly unemployment reports will have the final say on whether it is "job neutral."
Are the American people willing — or able — to set aside trillions of dollars to support a plan that cannot work without global participation? The very least we should expect from our elected leaders is a grown-up discussion about what it will all cost, what we'll get in return, and whether or not we can afford it right now. Or ever.
Those who support cap-and-trade have refused to engage in that discussion from the start. Carbon-tax supporters have been more up front. But that doesn't mean they're right.
— Thomas J. Pyle is president of the Institute for Energy Research
Sheikh Hasina’s Regional Anti-Terror Task Force Unlikely to Takeoff
Sheikh Hasina’s Regional Anti-Terror Task Force Unlikely to Takeoff. By Anand Kumar
Institute for Defence Studies and Analyses, March 16, 2009
Counter-terrorism and elimination of religious extremism were important parts of Sheikh Hasina’s election manifesto. But the concern about terrorism is not limited to top Awami League leaders and is also felt by a major section of the Bangladesh public. Many supported the Awami League in the hope of reversing the rising trend of extremism and terrorism in the country. In her very first press conference after winning the elections, Sheikh Hasina stated that she will not allow the country's soil to be used by terror groups and proposed a joint task force in the subcontinent to tackle terror. It is felt that this task force will help track down militants and bring them to justice as well as strengthen cooperation between the police forces and judiciaries of South Asian nations. Hasina also sought British support for such a task force during a meeting with the British High Commissioner to Dhaka. Terrorism was also a prominent topic that was discussed at the meeting with the American envoy James Moriarty and Bangladesh’s Foreign Minister Dipu Moni.
However, Hasina’s proposal to establish a South Asian regional anti-terror task force may not fructify especially given domestic opposition within Bangladesh. The Awami League’s main political rival, Bangladesh Nationalist Party (BNP), has expressed its opposition to the proposal. The party feels that other nations, particularly Pakistan, are unlikely to be enthusiastic about it. When Sheikh Hasina discussed the proposal with Indian foreign minister Pranab Mukherjee, the BNP launched a blistering attack against. BNP Secretary General Khandaker Delwar Hossain warned the government that “any bilateral mechanism” with India in the name of a South Asian regional anti-terror task force could turn Bangladesh into a “Gaza.” It could give rise to “complications and possibilities of armed activities of other countries spilling over to Bangladesh.” Hossain also said, “We firmly believe that our people, conventional laws, law enforcing agencies and the armed forces are capable enough to keep the country free from militancy and strife. Signing any deal with other countries outside international conventions to contain militancy is unnecessary and could prove suicidal.”
Jamaat-e-Islami Bangladesh has also warned the Hasina government that it will only invite trouble by forming a regional anti-terror task force. Party chief Matiur Rahman Nizami said, "Our police, BDR, RAB and army are enough to prevent terrorism in the country. If foreign troops are called inside the country it will amount to inviting trouble." Nizami criticized the government for its impatience to sign "anti-people" agreements like the regional anti-terrorism task, transit facilities, the Trade and Investment Framework Agreement (TIFA) with the United States, etc. Nizami also alleged that "….such a hasty move proves that they were put to power through a conspiracy only for signing such anti-people agreements."
In addition to domestic resistance, the regional task force proposal also has to contend with the realities of divergent interests among South Asian countries. There is little doubt that to combat terrorism South Asia needs a joint effort. It was realized long ago that regional cooperation was necessary to address terrorism, and it was with this objective that South Asian countries had adopted the SAARC Convention on Terrorism in 1987. The convention was reinforced by the adoption of an Additional Protocol on terrorism at the 12th Summit whose modalities were finalised in the Dhaka Summit. The SAARC established a Terrorist Offences Monitoring Desk (STOMD) in Colombo to collate, analyse and disseminate information about terrorist incidents, tactics, strategies and methods. At the 11th Summit in Kathmandu in January 2002, leaders of SAARC had taken a pledge to make collective efforts to stamp out terrorism.
But for regional efforts to bear fruit, all member states have to show equal commitment. In the past this has not been the case, a state of affairs that has not yet changed. If South Asia really wants to uproot terror SAARC should get down to implementing the declarations it has agreed upon at various summits. Hasina is also probably aware of the problem among SAARC countries, hence her call for good relations between Pakistan and India. But it is also known that relations between India and Pakistan are not going to improve in a hurry. Thus, it is all the more incomprehensible as to why the Hasina government wants to make counter-terrorism cooperation hostage to the creation of a regional mechanism.
Dr. Anand Kumar is Associate Fellow at the Institute for Defence Studies and Analyses, New Delhi.
Institute for Defence Studies and Analyses, March 16, 2009
Counter-terrorism and elimination of religious extremism were important parts of Sheikh Hasina’s election manifesto. But the concern about terrorism is not limited to top Awami League leaders and is also felt by a major section of the Bangladesh public. Many supported the Awami League in the hope of reversing the rising trend of extremism and terrorism in the country. In her very first press conference after winning the elections, Sheikh Hasina stated that she will not allow the country's soil to be used by terror groups and proposed a joint task force in the subcontinent to tackle terror. It is felt that this task force will help track down militants and bring them to justice as well as strengthen cooperation between the police forces and judiciaries of South Asian nations. Hasina also sought British support for such a task force during a meeting with the British High Commissioner to Dhaka. Terrorism was also a prominent topic that was discussed at the meeting with the American envoy James Moriarty and Bangladesh’s Foreign Minister Dipu Moni.
However, Hasina’s proposal to establish a South Asian regional anti-terror task force may not fructify especially given domestic opposition within Bangladesh. The Awami League’s main political rival, Bangladesh Nationalist Party (BNP), has expressed its opposition to the proposal. The party feels that other nations, particularly Pakistan, are unlikely to be enthusiastic about it. When Sheikh Hasina discussed the proposal with Indian foreign minister Pranab Mukherjee, the BNP launched a blistering attack against. BNP Secretary General Khandaker Delwar Hossain warned the government that “any bilateral mechanism” with India in the name of a South Asian regional anti-terror task force could turn Bangladesh into a “Gaza.” It could give rise to “complications and possibilities of armed activities of other countries spilling over to Bangladesh.” Hossain also said, “We firmly believe that our people, conventional laws, law enforcing agencies and the armed forces are capable enough to keep the country free from militancy and strife. Signing any deal with other countries outside international conventions to contain militancy is unnecessary and could prove suicidal.”
Jamaat-e-Islami Bangladesh has also warned the Hasina government that it will only invite trouble by forming a regional anti-terror task force. Party chief Matiur Rahman Nizami said, "Our police, BDR, RAB and army are enough to prevent terrorism in the country. If foreign troops are called inside the country it will amount to inviting trouble." Nizami criticized the government for its impatience to sign "anti-people" agreements like the regional anti-terrorism task, transit facilities, the Trade and Investment Framework Agreement (TIFA) with the United States, etc. Nizami also alleged that "….such a hasty move proves that they were put to power through a conspiracy only for signing such anti-people agreements."
In addition to domestic resistance, the regional task force proposal also has to contend with the realities of divergent interests among South Asian countries. There is little doubt that to combat terrorism South Asia needs a joint effort. It was realized long ago that regional cooperation was necessary to address terrorism, and it was with this objective that South Asian countries had adopted the SAARC Convention on Terrorism in 1987. The convention was reinforced by the adoption of an Additional Protocol on terrorism at the 12th Summit whose modalities were finalised in the Dhaka Summit. The SAARC established a Terrorist Offences Monitoring Desk (STOMD) in Colombo to collate, analyse and disseminate information about terrorist incidents, tactics, strategies and methods. At the 11th Summit in Kathmandu in January 2002, leaders of SAARC had taken a pledge to make collective efforts to stamp out terrorism.
But for regional efforts to bear fruit, all member states have to show equal commitment. In the past this has not been the case, a state of affairs that has not yet changed. If South Asia really wants to uproot terror SAARC should get down to implementing the declarations it has agreed upon at various summits. Hasina is also probably aware of the problem among SAARC countries, hence her call for good relations between Pakistan and India. But it is also known that relations between India and Pakistan are not going to improve in a hurry. Thus, it is all the more incomprehensible as to why the Hasina government wants to make counter-terrorism cooperation hostage to the creation of a regional mechanism.
Dr. Anand Kumar is Associate Fellow at the Institute for Defence Studies and Analyses, New Delhi.
Lawrence Summers on the Economic Crisis and Recovery
Lawrence Summers on the Economic Crisis and Recovery
Brookings, Mar 17, 2009
On March 13, the Brookings Institution hosted Lawrence Summers, Director of the White House National Economic Council, for a discussion of the Obama administration’s economic program and the prospects for the American economy.
Dr. Summers was appointed Director of the National Economic Council by President Obama on November 24, 2008. Before joining the White House in January, Dr. Summers was the Charles W. Eliot University Professor at Harvard University. He served as the 27th president of Harvard University from July 2001 until June 2006. From 1999 to 2001, he served as the 71st United States Secretary of the Treasury following his earlier service as Deputy and Under Secretary of the Treasury and as Chief Economist of the World Bank. Summers has taught economics at Harvard and MIT. Lawrence Summers received his B.S. from MIT and his Ph.D. in economics from Harvard. He served as a Brookings trustee from November 2002 – January 2009.
Brookings Senior Fellow Martin Neil Baily provided introductory remarks. After the program, Dr. Summers took audience questions.
Transcript
LARRY SUMMERS: Our single most important priority is bringing about economic recovery and ensuring that the next economic expansion, unlike its recent predecessors, is fundamentally sound and not driven by financial excess. Without robust and sustained economic expansion, we will not achieve any other important national goal. We will not be able to project strength globally or reduce poverty locally. We will not expand access to higher education or make health care more affordable. And we will not be able to create opportunities for new small businesses to thrive, or most importantly, to raise incomes for middle-class families.
So today I come here to explain and discuss the rationale behind the President's Recovery Program and our strategy for long-term growth. Our problems were not made in a day or a month or a year, and they will not be solved quickly. But there is one ineluctable lesson of the history of financial crises: they all end. I am confident that with strong and sound policies the President has put forward and the passage of time, we will restore economic growth, regain financial stability and find opportunity in this moment of crisis to assure that our future prosperity rests on a sound and sustainable foundation.
View Full Transcript »
Brookings, Mar 17, 2009
On March 13, the Brookings Institution hosted Lawrence Summers, Director of the White House National Economic Council, for a discussion of the Obama administration’s economic program and the prospects for the American economy.
Dr. Summers was appointed Director of the National Economic Council by President Obama on November 24, 2008. Before joining the White House in January, Dr. Summers was the Charles W. Eliot University Professor at Harvard University. He served as the 27th president of Harvard University from July 2001 until June 2006. From 1999 to 2001, he served as the 71st United States Secretary of the Treasury following his earlier service as Deputy and Under Secretary of the Treasury and as Chief Economist of the World Bank. Summers has taught economics at Harvard and MIT. Lawrence Summers received his B.S. from MIT and his Ph.D. in economics from Harvard. He served as a Brookings trustee from November 2002 – January 2009.
Brookings Senior Fellow Martin Neil Baily provided introductory remarks. After the program, Dr. Summers took audience questions.
Transcript
LARRY SUMMERS: Our single most important priority is bringing about economic recovery and ensuring that the next economic expansion, unlike its recent predecessors, is fundamentally sound and not driven by financial excess. Without robust and sustained economic expansion, we will not achieve any other important national goal. We will not be able to project strength globally or reduce poverty locally. We will not expand access to higher education or make health care more affordable. And we will not be able to create opportunities for new small businesses to thrive, or most importantly, to raise incomes for middle-class families.
So today I come here to explain and discuss the rationale behind the President's Recovery Program and our strategy for long-term growth. Our problems were not made in a day or a month or a year, and they will not be solved quickly. But there is one ineluctable lesson of the history of financial crises: they all end. I am confident that with strong and sound policies the President has put forward and the passage of time, we will restore economic growth, regain financial stability and find opportunity in this moment of crisis to assure that our future prosperity rests on a sound and sustainable foundation.
View Full Transcript »
Monday, March 16, 2009
Everybody hates ethanol
Hating Ethanol, by Drew Thornley
Planet Gore, Monday, March 16, 2009
In case you're not up to speed on the boondoggle that is the U.S. corn-ethanol industry, today's Wall Street Journal has a nice status report:
These days, it's routine for businesses to fail, get rescued by the government, and then continue to fail. But ethanol, which survives only because of its iron lung of subsidies and mandates, is a special case. Naturally, the industry is demanding even more government life support.
The ethanol boosters aren't troubled that only a fraction of the 240 million cars and trucks on the road today can run with ethanol blends higher than 10%. It can damage engines and corrode automotive pipes, as well as impair some safety features, especially in older vehicles. It can also overwhelm pollution control systems like catalytic converters. The malfunctions multiply in other products that use gas, such as boats, snowmobiles, lawnmowers, chainsaws, etc.
That possible policy train wreck is uniting almost every other Washington lobby — and talk about strange bedfellows. The Alliance of Automobile Manufacturers, the Motorcycle Industry Council and the Outdoor Power Equipment Institute, among others, are opposed, since raising the blend limit will ruin their products. The left-leaning American Lung Association and the Union of Concerned Scientists are opposed too, since it will increase auto emissions. The Natural Resources Defense Council and the Sierra Club agree, on top of growing scientific evidence that corn ethanol provides little or no net reduction in CO2 over the gasoline it displaces.
The biggest losers in this scheme are U.S. oil refiners. Liability for any problems arising from ethanol blending rests with them, because Congress refused to grant legal immunity for selling a product that complies with the mandates that it ordered. The refiners are also set to pay stiff fines for not fulfilling Congress's mandates for second-generation cellulosic ethanol. But the cellulosic ethanol makers themselves already concede that they won't be able to churn out enough of the stuff — 100 million gallons next year, 250 million gallons in 2011 — to meet the targets that Congress wrote two years ago.
So successful but politically unpopular businesses will be punished for not buying a product that does not exist — from companies that haven't yet found a way to succeed despite generous political and taxpayer advantages. The next step is to use cap and trade to make green alternatives look artificially good by comparison. Even then they'll probably still be bottomless money pits.
To recap: Congress and the ethanol lobby argue that if some outcome would be politically nice, it should be mandated (details to follow). Then a new round of market interventions is necessary to fix the economic harm resulting from the previous requirements, while creating more damage in the process. Ethanol is one of the most shameless energy rackets going, in a field with no shortage of competitors.
Planet Gore, Monday, March 16, 2009
In case you're not up to speed on the boondoggle that is the U.S. corn-ethanol industry, today's Wall Street Journal has a nice status report:
These days, it's routine for businesses to fail, get rescued by the government, and then continue to fail. But ethanol, which survives only because of its iron lung of subsidies and mandates, is a special case. Naturally, the industry is demanding even more government life support.
The ethanol boosters aren't troubled that only a fraction of the 240 million cars and trucks on the road today can run with ethanol blends higher than 10%. It can damage engines and corrode automotive pipes, as well as impair some safety features, especially in older vehicles. It can also overwhelm pollution control systems like catalytic converters. The malfunctions multiply in other products that use gas, such as boats, snowmobiles, lawnmowers, chainsaws, etc.
That possible policy train wreck is uniting almost every other Washington lobby — and talk about strange bedfellows. The Alliance of Automobile Manufacturers, the Motorcycle Industry Council and the Outdoor Power Equipment Institute, among others, are opposed, since raising the blend limit will ruin their products. The left-leaning American Lung Association and the Union of Concerned Scientists are opposed too, since it will increase auto emissions. The Natural Resources Defense Council and the Sierra Club agree, on top of growing scientific evidence that corn ethanol provides little or no net reduction in CO2 over the gasoline it displaces.
The biggest losers in this scheme are U.S. oil refiners. Liability for any problems arising from ethanol blending rests with them, because Congress refused to grant legal immunity for selling a product that complies with the mandates that it ordered. The refiners are also set to pay stiff fines for not fulfilling Congress's mandates for second-generation cellulosic ethanol. But the cellulosic ethanol makers themselves already concede that they won't be able to churn out enough of the stuff — 100 million gallons next year, 250 million gallons in 2011 — to meet the targets that Congress wrote two years ago.
So successful but politically unpopular businesses will be punished for not buying a product that does not exist — from companies that haven't yet found a way to succeed despite generous political and taxpayer advantages. The next step is to use cap and trade to make green alternatives look artificially good by comparison. Even then they'll probably still be bottomless money pits.
To recap: Congress and the ethanol lobby argue that if some outcome would be politically nice, it should be mandated (details to follow). Then a new round of market interventions is necessary to fix the economic harm resulting from the previous requirements, while creating more damage in the process. Ethanol is one of the most shameless energy rackets going, in a field with no shortage of competitors.
The US should focus on defending itself, allowing friends and allies to defend themselves and their regions
Squaring the Pentagon, by Doug Bandow
The U.S. government should focus on defending America, allowing friends and allies to defend themselves and their regions.
Cato, Mar 10, 2009
President Barack Obama has unveiled his new budget, which proposes continued increases in military outlays. What for? The United States is spending far too much on the Pentagon.
There is no more important federal role than providing for the common defense. But what is required for defense depends upon circumstances. Military requirements in 1900 differed dramatically from those in 1940 and in 1980. What are the requirements today?
The latest Pentagon budget suggests that the United States is embattled and isolated, its territory threatened and its future imperiled. The Obama administration has proposed a $40 billion (8 percent) hike in military outlays in 2010 to $527.7 billion. (Counting Iraq and Afghanistan will push annual military spending up to around $700 billion.) President Obama plans to continue increasing the size of the Army and Marine Corps.
This proposal comes on top of a 75 percent increase in real military outlays under the Bush administration. Today, Washington possesses the world's most sophisticated nuclear arsenal, most powerful air force, most dominating navy and most effective army. America accounts for roughly half of global military outlays. Observes the Cato Institute's Ben Friedman: "Add the wars, nuclear weapons research, veterans, and homeland security, and you get about $750 billion. That is more than six times what China spends, 10 times what Russia spends and 70 times what Iran, North Korea and Syria spend combined."
Nevertheless, Pentagon officials and conservative activists are complaining about defense "cuts" since the new administration has reduced the Pentagon's request for even more money. Robert Kagan of the Carnegie Endowment for International Peace even contends that the Obama administration is signaling that "the American retreat has begun."
Thus, a mix of officials, lobbyists, and analysts advocate spending a fixed percentage of GDP on the military, irrespective of circumstance. Both Secretary of Defense Robert Gates and Joint Chiefs of Staff Chairman Admiral Mike Mullen advocate setting a spending floor of 4 percent of GDP. Marion Blakey, president of the Aerospace Industries Association says the 4 percent floor should be "front and center for any new president's agenda." Former Missouri Senator James Talent has been promoting the same number. The Heritage Foundation calls this the "4% for Freedom Solution." (Baseline spending currently runs 3.7 percent.)
Steven Kosiak of the Center for Strategic and Budgetary Assessments figures that a four percent rule would increase military outlays above current plans by between $1.4 and $1.7 trillion over the next decade. Even that isn't enough money for some uber-hawks. Republican presidential candidate Fred Thompson wanted 4.5 percent of GDP. AEI's Gary Schmitt prefers five percent. The Wall Street Journal has editorialized for five to six percent. Former and potential GOP presidential candidate Mike Huckabee advocated six percent—more than a 50 percent hike over today's levels.
Whatever could justify such increases?
The United States already spends more on the military in real terms than it did during the cold war, even as the very hot Korean and Vietnam Wars raged. America devotes a lower percentage of its GDP to the military, but the U.S. economy is much greater today—six times (adjusting for inflation) as big as at the end of World War II. Total resources for defense are higher today than at any other point in over six decades.
Nevertheless, worries Admiral Mullen: "the four percent floor is . . . really important, given the world we're living in, given the threats that we see out there, the risks that are, in fact, global, not just in the Middle East." Bret Stephens of the Wall Street Journal believes that we are in what amounts to a new post-Locarno world like that before World War II, as the forces of darkness were gathering. AEI's Frederick Kagan argued that "American inattention to the world in the coming years could lead to a similarly devastating result" like World War II, since "the current international environment is by any comparison more dangerous for the U.S. than the one that led to World War II." Jim Talent contended: "We live in a multipolar world with threats that are highly unpredictable and therefore, taken as a whole, more dangerous than the threats we faced during the cold war." Representative John Shadegg claimed that "Our nation is facing the threat of Radical Islam, the gravest threat to our national security in history."
If these claims are true, then why spend only four percent of GDP on defense? Why not 9.4 percent, as during the Vietnam War? Or 14.2 percent, as during the Korean War? Or 37.8 percent, as during World War II? Or even more? After all, we can never be too safe.
The reason why not is simple. These apocalyptic claims are absurd.
There is no longer a Nazi Germany or imperial Japan. Nor even a fascist Italy. There is no more Soviet Union or Warsaw Pact. There is no longer an ideologically-aggressive Communist China allied with the Soviet Union. The patchwork of Third World states backed by the Soviet Union has dissolved. As Gertrude Stein once said of Oakland, there is no there there in terms of traditional military threats.
At the same time, Washington spends almost as much as the rest of the world combined on our military. Sure, some small or poor states devote a larger percentage of their limited resources to defense, but their total outlays remain minuscule compared to those of America. That's not all, however. The United States is allied with every major industrialized state save China and Russia. America and other NATO members together account for about $1.05 trillion out of $1.470 trillion in world military expenditures. Adding Japan, South Korea, and Australia take the allied up to $1.15 trillion.
Nevertheless, when running for president Rudy Giuliani opined: "The idea of a post-Cold War 'peace dividend' was a serious mistake—the product of wishful thinking and the opposite of true realism." The Washington Examiner worries that "potential adversaries rapidly are ramping up their militaries."
Precisely who?
America's relationship with Moscow and Beijing is civil, if sometimes difficult. Even if one assumes greater hostility not today evident, the United States vastly outranges both militarily. America's defense expenditures—not counting spending for the Afghanistan and Iraq wars—run at least four times and as much as seven times as much as each of their outlays (for which estimates vary). America has eleven carrier groups, while Russia has one and China has none. Moscow has a nuclear force sufficient to deter U.S. military action, but little conventional capability beyond its own borders. Russia can beat up neighboring Georgia, but not threaten the United States.
Beijing is investing more in the military, but is starting with a far lower base and still spending far less. If the People's Republic of China (PRC) wants to overtake Washington as a global power, the PRC will have to spend more than America for years. What China is doing today is creating a defensive force capable of deterring U.S. intervention, not an offensive force capable of attacking America. And even as China grows economically, it will remain well behind the United States in wealth. America's per capita GDP last year was $48,000. That of China was $6,100. The PRC is in no position to match, let alone overtake, America, in the foreseeable future.
Moreover, Russia's and China's neighbors, most of whom are close friends of Washington, could do much more if necessary: America's allies account for about three-quarters of world GDP, and the number goes higher when one includes friendly states like India. The European Union's GDP alone is thirteen times as great as that of Russia.
Japan's economy remains roughly as large as that of the PRC (estimates differ). Still, China has a greater prospect than Russia of becoming regionally dominant. But Beijing is surrounded by countries with which it has fought wars: Russia, Japan, India and Vietnam. Further, India, Japan, South Korea, Australia and ASEAN states have created or could create militaries capable of deterring Chinese adventurism. Beijing would have to undertake a dramatic military build-up to overwhelm Washington's East Asian friends, let alone threaten America's territory.
Could circumstances change in five, ten or twenty years? Yes, but it makes no sense for the United States to waste money today dealing with unlikely scenarios which, even if they occurred, could be dealt with less expensively in the future. America will be stronger and better prepared to face future challenges if it husbands its resources and encourages economic growth today. The United States should work to defuse, not exacerbate conflict. For instance, philosophical distaste for Vladimir Putin's Russia is no reason to turn it into a military adversary.
If not China and Russia, then who threatens America? Washington has forged better ties with India and has no serious conflicts with other emerging powers, such as Brazil, Indonesia and South Africa. America's presumed enemies are few and pitiful: North Korea, Iran, Cuba. Maybe Burma and Venezuela. Toss in Sudan and Somalia, as if the latter actually existed as a nation. Stretch to include Syria. This disparate group is no replacement for the Axis alliance or Soviet empire.
None of these countries actually endangers the United States. Nasty actors, yes, but with very limited ambitions and abilities. Writes Friedman, "North Korea and Iran trouble their citizens and neighbors, but with decaying economies, shoddy militaries, and aversion to suicidal behavior, they pose little threat to the United States."
Only North Korea has a serious military, but it is directed at the Republic of Korea (ROK), not the United States. The ROK is a long-time friend, but can defend itself. With 40 times the GDP, twice the population, a vast technological edge and far more international friends, including the North's old allies Beijing and Moscow, South Korea no longer needs America's help.
Iran doesn't even threaten U.S. allies. Tehran remains far away from developing actual nuclear weapons, is surrounded by potential adversaries and faces Israel, which is a regional superpower with a sizable nuclear arsenal. The other hostile states are militarily irrelevant—brutal towards their own people, but unable to harm anyone else.
Washington is not without serious security concerns, most obviously terrorism. However, carrier groups and armored divisions are largely irrelevant to this issue. Better intelligence, improved allied cooperation and expanded special forces are far more useful tools. Indeed, military involvement itself encourages terrorism: intervening in the Lebanese civil war, placing a garrison on Saudi territory and sending the USS Cole to Yemen all helped spark terrorist attacks. So did the occupation of Iraq. In these and other cases, a smaller and less active military would have done more to reduce terrorism.
Washington should spend heavily, if necessary, to safeguard America's population, territory, constitutional system and liberties. But this mission cannot explain Washington's current military outlays. Observes Richard Betts of Columbia University,
such levels cannot be justified based on any actual threats that the U.S. armed forces might plausibly be expected to encounter. The military capabilities of the United States need to be kept comfortably superior to those of present and potential enemies. But they should be measured relatively, against those enemies' capabilities, and not against the limits of what is technologically possible or based on some vague urge to have more.
Today most U.S. military outlays are directed at offense, not defense, to underwrite populous and prosperous allies and remake failed societies. This is why defense expenditures are seen by some as "inadequate." Military spending is the price of one's foreign policy, and it is expensive to attempt to micromanage world affairs. Thus, Tom Donnelly of the American Enterprise Institute correctly complains of "the large and long-standing gap between U.S. strategy and military resources." But he is wrong to assume that promiscuous intervention is Washington's only policy option.
How should America decide how much to spend on the military? Steven Kosiak writes:
considering the range of military threats and challenges the country faces, and determining the strategy, forces and capabilities needed to counter those challenges and advance U.S. interests, at an acceptable level of risk—as well as at an acceptable cost, in terms of other national priorities (including everything from homeland security to health care).
By this standard, military expenditures should come down substantially. The point is not that Washington cannot afford to be a global cop and social engineer, though the economic crisis—with the collapse in private asset values and explosion of federal debt—has made such a policy much more difficult. But it is not in America's interest to devote so much of its resources to activities with so little relevance to American security. The U.S. government should focus on defending America, allowing friends and allies to defend themselves and their regions.
If spending as much as the rest of the world on the military isn't enough, how much is? If accounting for nearly 80 percent of world military outlays isn't enough for the United States and its allies, how much is? America is by far the most powerful nation on earth. What the United States needs is not a bigger military budget, but a more restrained foreign policy. That is, a foreign policy befitting a democratic republic.
The U.S. government should focus on defending America, allowing friends and allies to defend themselves and their regions.
Cato, Mar 10, 2009
President Barack Obama has unveiled his new budget, which proposes continued increases in military outlays. What for? The United States is spending far too much on the Pentagon.
There is no more important federal role than providing for the common defense. But what is required for defense depends upon circumstances. Military requirements in 1900 differed dramatically from those in 1940 and in 1980. What are the requirements today?
The latest Pentagon budget suggests that the United States is embattled and isolated, its territory threatened and its future imperiled. The Obama administration has proposed a $40 billion (8 percent) hike in military outlays in 2010 to $527.7 billion. (Counting Iraq and Afghanistan will push annual military spending up to around $700 billion.) President Obama plans to continue increasing the size of the Army and Marine Corps.
This proposal comes on top of a 75 percent increase in real military outlays under the Bush administration. Today, Washington possesses the world's most sophisticated nuclear arsenal, most powerful air force, most dominating navy and most effective army. America accounts for roughly half of global military outlays. Observes the Cato Institute's Ben Friedman: "Add the wars, nuclear weapons research, veterans, and homeland security, and you get about $750 billion. That is more than six times what China spends, 10 times what Russia spends and 70 times what Iran, North Korea and Syria spend combined."
Nevertheless, Pentagon officials and conservative activists are complaining about defense "cuts" since the new administration has reduced the Pentagon's request for even more money. Robert Kagan of the Carnegie Endowment for International Peace even contends that the Obama administration is signaling that "the American retreat has begun."
Thus, a mix of officials, lobbyists, and analysts advocate spending a fixed percentage of GDP on the military, irrespective of circumstance. Both Secretary of Defense Robert Gates and Joint Chiefs of Staff Chairman Admiral Mike Mullen advocate setting a spending floor of 4 percent of GDP. Marion Blakey, president of the Aerospace Industries Association says the 4 percent floor should be "front and center for any new president's agenda." Former Missouri Senator James Talent has been promoting the same number. The Heritage Foundation calls this the "4% for Freedom Solution." (Baseline spending currently runs 3.7 percent.)
Steven Kosiak of the Center for Strategic and Budgetary Assessments figures that a four percent rule would increase military outlays above current plans by between $1.4 and $1.7 trillion over the next decade. Even that isn't enough money for some uber-hawks. Republican presidential candidate Fred Thompson wanted 4.5 percent of GDP. AEI's Gary Schmitt prefers five percent. The Wall Street Journal has editorialized for five to six percent. Former and potential GOP presidential candidate Mike Huckabee advocated six percent—more than a 50 percent hike over today's levels.
Whatever could justify such increases?
The United States already spends more on the military in real terms than it did during the cold war, even as the very hot Korean and Vietnam Wars raged. America devotes a lower percentage of its GDP to the military, but the U.S. economy is much greater today—six times (adjusting for inflation) as big as at the end of World War II. Total resources for defense are higher today than at any other point in over six decades.
Nevertheless, worries Admiral Mullen: "the four percent floor is . . . really important, given the world we're living in, given the threats that we see out there, the risks that are, in fact, global, not just in the Middle East." Bret Stephens of the Wall Street Journal believes that we are in what amounts to a new post-Locarno world like that before World War II, as the forces of darkness were gathering. AEI's Frederick Kagan argued that "American inattention to the world in the coming years could lead to a similarly devastating result" like World War II, since "the current international environment is by any comparison more dangerous for the U.S. than the one that led to World War II." Jim Talent contended: "We live in a multipolar world with threats that are highly unpredictable and therefore, taken as a whole, more dangerous than the threats we faced during the cold war." Representative John Shadegg claimed that "Our nation is facing the threat of Radical Islam, the gravest threat to our national security in history."
If these claims are true, then why spend only four percent of GDP on defense? Why not 9.4 percent, as during the Vietnam War? Or 14.2 percent, as during the Korean War? Or 37.8 percent, as during World War II? Or even more? After all, we can never be too safe.
The reason why not is simple. These apocalyptic claims are absurd.
There is no longer a Nazi Germany or imperial Japan. Nor even a fascist Italy. There is no more Soviet Union or Warsaw Pact. There is no longer an ideologically-aggressive Communist China allied with the Soviet Union. The patchwork of Third World states backed by the Soviet Union has dissolved. As Gertrude Stein once said of Oakland, there is no there there in terms of traditional military threats.
At the same time, Washington spends almost as much as the rest of the world combined on our military. Sure, some small or poor states devote a larger percentage of their limited resources to defense, but their total outlays remain minuscule compared to those of America. That's not all, however. The United States is allied with every major industrialized state save China and Russia. America and other NATO members together account for about $1.05 trillion out of $1.470 trillion in world military expenditures. Adding Japan, South Korea, and Australia take the allied up to $1.15 trillion.
Nevertheless, when running for president Rudy Giuliani opined: "The idea of a post-Cold War 'peace dividend' was a serious mistake—the product of wishful thinking and the opposite of true realism." The Washington Examiner worries that "potential adversaries rapidly are ramping up their militaries."
Precisely who?
America's relationship with Moscow and Beijing is civil, if sometimes difficult. Even if one assumes greater hostility not today evident, the United States vastly outranges both militarily. America's defense expenditures—not counting spending for the Afghanistan and Iraq wars—run at least four times and as much as seven times as much as each of their outlays (for which estimates vary). America has eleven carrier groups, while Russia has one and China has none. Moscow has a nuclear force sufficient to deter U.S. military action, but little conventional capability beyond its own borders. Russia can beat up neighboring Georgia, but not threaten the United States.
Beijing is investing more in the military, but is starting with a far lower base and still spending far less. If the People's Republic of China (PRC) wants to overtake Washington as a global power, the PRC will have to spend more than America for years. What China is doing today is creating a defensive force capable of deterring U.S. intervention, not an offensive force capable of attacking America. And even as China grows economically, it will remain well behind the United States in wealth. America's per capita GDP last year was $48,000. That of China was $6,100. The PRC is in no position to match, let alone overtake, America, in the foreseeable future.
Moreover, Russia's and China's neighbors, most of whom are close friends of Washington, could do much more if necessary: America's allies account for about three-quarters of world GDP, and the number goes higher when one includes friendly states like India. The European Union's GDP alone is thirteen times as great as that of Russia.
Japan's economy remains roughly as large as that of the PRC (estimates differ). Still, China has a greater prospect than Russia of becoming regionally dominant. But Beijing is surrounded by countries with which it has fought wars: Russia, Japan, India and Vietnam. Further, India, Japan, South Korea, Australia and ASEAN states have created or could create militaries capable of deterring Chinese adventurism. Beijing would have to undertake a dramatic military build-up to overwhelm Washington's East Asian friends, let alone threaten America's territory.
Could circumstances change in five, ten or twenty years? Yes, but it makes no sense for the United States to waste money today dealing with unlikely scenarios which, even if they occurred, could be dealt with less expensively in the future. America will be stronger and better prepared to face future challenges if it husbands its resources and encourages economic growth today. The United States should work to defuse, not exacerbate conflict. For instance, philosophical distaste for Vladimir Putin's Russia is no reason to turn it into a military adversary.
If not China and Russia, then who threatens America? Washington has forged better ties with India and has no serious conflicts with other emerging powers, such as Brazil, Indonesia and South Africa. America's presumed enemies are few and pitiful: North Korea, Iran, Cuba. Maybe Burma and Venezuela. Toss in Sudan and Somalia, as if the latter actually existed as a nation. Stretch to include Syria. This disparate group is no replacement for the Axis alliance or Soviet empire.
None of these countries actually endangers the United States. Nasty actors, yes, but with very limited ambitions and abilities. Writes Friedman, "North Korea and Iran trouble their citizens and neighbors, but with decaying economies, shoddy militaries, and aversion to suicidal behavior, they pose little threat to the United States."
Only North Korea has a serious military, but it is directed at the Republic of Korea (ROK), not the United States. The ROK is a long-time friend, but can defend itself. With 40 times the GDP, twice the population, a vast technological edge and far more international friends, including the North's old allies Beijing and Moscow, South Korea no longer needs America's help.
Iran doesn't even threaten U.S. allies. Tehran remains far away from developing actual nuclear weapons, is surrounded by potential adversaries and faces Israel, which is a regional superpower with a sizable nuclear arsenal. The other hostile states are militarily irrelevant—brutal towards their own people, but unable to harm anyone else.
Washington is not without serious security concerns, most obviously terrorism. However, carrier groups and armored divisions are largely irrelevant to this issue. Better intelligence, improved allied cooperation and expanded special forces are far more useful tools. Indeed, military involvement itself encourages terrorism: intervening in the Lebanese civil war, placing a garrison on Saudi territory and sending the USS Cole to Yemen all helped spark terrorist attacks. So did the occupation of Iraq. In these and other cases, a smaller and less active military would have done more to reduce terrorism.
Washington should spend heavily, if necessary, to safeguard America's population, territory, constitutional system and liberties. But this mission cannot explain Washington's current military outlays. Observes Richard Betts of Columbia University,
such levels cannot be justified based on any actual threats that the U.S. armed forces might plausibly be expected to encounter. The military capabilities of the United States need to be kept comfortably superior to those of present and potential enemies. But they should be measured relatively, against those enemies' capabilities, and not against the limits of what is technologically possible or based on some vague urge to have more.
Today most U.S. military outlays are directed at offense, not defense, to underwrite populous and prosperous allies and remake failed societies. This is why defense expenditures are seen by some as "inadequate." Military spending is the price of one's foreign policy, and it is expensive to attempt to micromanage world affairs. Thus, Tom Donnelly of the American Enterprise Institute correctly complains of "the large and long-standing gap between U.S. strategy and military resources." But he is wrong to assume that promiscuous intervention is Washington's only policy option.
How should America decide how much to spend on the military? Steven Kosiak writes:
considering the range of military threats and challenges the country faces, and determining the strategy, forces and capabilities needed to counter those challenges and advance U.S. interests, at an acceptable level of risk—as well as at an acceptable cost, in terms of other national priorities (including everything from homeland security to health care).
By this standard, military expenditures should come down substantially. The point is not that Washington cannot afford to be a global cop and social engineer, though the economic crisis—with the collapse in private asset values and explosion of federal debt—has made such a policy much more difficult. But it is not in America's interest to devote so much of its resources to activities with so little relevance to American security. The U.S. government should focus on defending America, allowing friends and allies to defend themselves and their regions.
If spending as much as the rest of the world on the military isn't enough, how much is? If accounting for nearly 80 percent of world military outlays isn't enough for the United States and its allies, how much is? America is by far the most powerful nation on earth. What the United States needs is not a bigger military budget, but a more restrained foreign policy. That is, a foreign policy befitting a democratic republic.
A Dialogue With Lebanon's Ayatollah, Muhammad Hussein Fadhlullah
A Dialogue With Lebanon's Ayatollah. By Robert L Pollock
WSJ, Beirut, Mar 16, 2009, page A7
'I have not found in the whole long history of the Arab-Israeli conflict even one neutral American position. We used to love America in the region in the '40s. [President Woodrow] Wilson's principles [of national self-determination] represent freedom facing a Europe that was colonizing us. But America now is living a policy worse than that of British and French colonialism."
So said Muhammad Hussein Fadhlullah early one morning last week, and I suppose I should not have been surprised.
We met in a nondescript -- but heavily guarded -- office building in south Beirut. On my way there I had noticed, as in the Bekaa Valley a day earlier, numerous posters celebrating Hezbollah "martyrs." According to many, the Grand Ayatollah Fadhlullah is Hezbollah's spiritual leader. He is not actually a member of the famous Lebanese Shiite organization headed by Hassan Nasrallah. But his interpreter tells me the Israelis bombed his house during their 2006 air campaign in Lebanon. There is no doubt someone -- the CIA and the Saudis, according to a detailed account in Bob Woodward's book "Veil" -- targeted him in 1985, when a massive bomb aimed in his direction killed nearly 80 civilians in Beirut.
That, readers may recall, was not long after alleged Hezbollah suicide bombers directed by the late Imad Mugniyeh -- one of the "martyrs" celebrated in the posters -- murdered hundreds at the American Embassy and Marine barracks. And it was in the midst of the hostage crises that would define Lebanon in the minds of my own generation of Americans. Outside of the Iranian theocrats, no group did more than Hezbollah to associate Shiism, once known for its political quietism, with radicalism and terror.
And what of Mr. Fadhlullah today? The aging cleric (born 1935), sports the requisite black turban and a disarming twinkle in his eyes. He is often described as a "progressive" religious thinker because of views such as his egalitarian outlook on the role of women in Muslim society (he is online at english.bayynat.org.lb). Yet there can be little doubt the Ayatollah's views have also shaped, and been shaped by, the fragile and often violent country he has called home since the mid-1960s.
The Lebanese-born scholar Fouad Ajami draws my attention to Mr. Fadhlullah's preface to the 1984 edition of his book, "Islam and the Logic of Force": "Civilization does not mean that you face a rocket with a stick or a jet-fighter with a kite, or a warship with a sailboat. . . . One must face force with equal or superior force. If it is legitimate to defend self and land and destiny, then all means of self-defense are legitimate."
I decide to start our interview by asking what people mean when they describe him in "progressive" terms. "When man thinks," he tells me, "he should live in his own age, not think through the past . . . When I am in dialogue with anyone, I attempt to study their mind and to speak to them in the language of their mind, not to address them in the way I think but rather in the way they think. On this basis we begin this dialogue with you."
Mr. Fadhlullah tells me that though he is originally Lebanese, he was born in Najaf, Iraq, where his father was a teacher at the Hawza, or religious seminary, from which he would eventually earn his current distinction. (He holds the same rank as Iraq's Ali Sistani; Shiites recognize a small number of "grand ayatollahs" who issue religious rulings known as fatwas and serve as objects of "emulation.") He says his international upbringing shaped his way of thinking.
I ask if he thinks Iraq is better off now than it was under Saddam. Iraq had a problem with "dictatorship," he concedes. But this "dictatorship had a relationship with the former American administration," he says, pointing to Saddam's invasion of Iran and other actions that allegedly "serv[ed] the American strategy . . . Saddam Hussein was an employee of the CIA but his job was finished by the end." He accuses the Bush administration of pursuing a policy of "constructive chaos" during the occupation.
Mr. Fadhlullah's fellow Shiite scholars in Najaf have been heard to complain about such sour pronouncements, but I see no reason to belabor the point. There is a rivalry of sorts with Mr. Sistani. And when it comes to the upcoming parliamentary elections in Lebanon -- the country shook off Syrian occupation in 2005, some say inspired by Iraq -- Mr. Fadhlullah even points to the West as a good example:
"We hope that that the elections will be as free as in civilized nations. Our problem in the Arab world is that people fear their rulers and therefore fall short of changing them, whereas the natural course of things is that rulers should fear their peoples. . . . We appreciate the way elections are run in America or the West; the Americans or the Europeans are not frozen over one personality. They study the success or failure of this president or this administration, and therefore they change it from time to time."
I point out that many people associate political Shiism with Iran and a concept known as Welayat al-Faqih -- or Guardianship of the Jurist -- which has been used to justify the authoritarian regimes of the Ayatollahs Khomeini and Khameini.
"I don't believe that Welayat al-Faqih has any role in Lebanon," Mr. Fadhlullah says without hesitation. "Perhaps some Lebanese commit themselves to the policy of the Guardian Jurist, as some of them commit themselves to the policy of the Vatican [Lebanon's large Maronite community is Catholic]. My opinion is that I don't see the Guardianship of the Jurist as the definitive Islamic regime."
When a Muslim goes to vote should he care more about a cleric's opinion than anyone else's?
"He should care about his own stance . . . . The Islamic idea says: When you cast your ballot, you have to watch for God because God will hold you responsible for the results of this ballot. If the person you voted for was unjust, God will hold you accountable for participating in his injustice. . . . Hence, the Americans who voted for George Bush are responsible for all the blood shed in his wars and occupations."
That seems as good an opening as any to broach the subject of Hezbollah. Does he think it's healthy that Lebanon's Shiites are increasingly associated with such a party?
His answer, in effect, is that Hezbollah is a force for modernization: "Hezbollah is a group of Shiites who are university educated. We know that you will find at universities, whether here in Lebanon or in the West, many who agree with the thought of Hezbollah." True enough, at least as concerns attitudes toward Israel.
Then the answer gets more interesting: "We do not reject the West. But we disagree with some Western administrations. We believe that America is not the administration ruling America. America is rather the universities, the research centers and the American people. That is why we want to be friends with the American people with all their variation. I was the first Islamic figure to denounce what happened on September 11. I issued a press release after four hours saying that this affair is not acceptable by any mind, divine law or religion. What these people did was directed to the American people not to the American administration."
I can't help but interject. Hadn't he just told me the American people were in fact responsible for the actions of the leaders they voted for?
He responds that the people bear "a responsibility," but concedes they can't predict their leaders' future actions. "What I am trying to say," he continues, "is that perhaps we want to be friends with the American people to engage them in a dialogue about their choices as they engage in a dialogue about our choices. Friendship does not mean adhering to whatever your friend commits to and does. Dialogue strengthens friendship; it does not annul it."
What does the Ayatollah think of President Obama? Does he think he might improve relations between the Islamic world and the United States?
Again, an interesting answer: "I think that some of his statements show that he believes in the method of dialogue. But here is an important point: America is not ruled by a person, it is ruled by institutions. The question is what is the influence of institutions like the Congress and others on the president. Can the president, if he has private opinions, can he carry them out facing institutions and conditions challenging the administration? We, in the Arab countries or in the East, we don't have institutions. The ruler is one person or one family. Therefore the people cannot object.
"We wish that President Obama tries with all his mandate to confirm the slogans he launched while still a candidate, that he tries with all power to make the world a field of dialogue not a field of war. We don't have a problem with any American president, but our problem is with his policy that might affect our strategic interest. We love freedom, therefore we are with whoever lives with us on the basis that we are free."
But didn't George Bush say that he wanted to bring freedom and democracy to the Middle East? Was he not sincere in those words?
"Does occupation . . . ?" He pauses. "Could democracy be forced upon peoples? Does occupation represent a title of democracy for people? Democracy sets out from the free choices of peoples. Therefore President Bush managed to get America hated everywhere in the world. His policy was the mentality of war, not a humane mentality. He might have spoken about 'peace,' but he saved 'war' inside the word 'peace.' That is why he was even rejected by American public opinion."
I raise Hezbollah again. Does the Iranian-backed group have Lebanon's best interests at heart? Or does it have ambitions outside Lebanon? For whom is it working?
"I don't think that the Lebanese Hezbollah has a project beyond Lebanon. Because it does not have the capacity to do so . . . . Hezbollah emerged in Lebanon as a reaction to the recurrent Israeli aggression over decades. The Lebanese army is weak with regard to its power of deterrence. Therefore it cannot face any Israeli aggression. Hezbollah is supplementary to the Lebanese Army defending the country. If the Lebanese Army reaches a level of strength enabling it to defend the country, there would be no longer a need for the resistance."
And what about the posters, I ask? Imad Mugniyeh didn't just fight Israel, he killed a lot of Americans. Does he think the children of the neighborhood should look at the posters and think Mugniyeh is a hero?
"I think that the stage Lebanon lived [when the Americans were killed] was one without clear limitations. It is very natural that the American policy was interconnected with the Israeli policy. The stage when this took place was one of the Cold War between the Soviet Union and the West. Therefore the issue was not setting out from a person, but from the conflict between the East and the West, and through the political and security anarchy in Lebanon. In my own belief, this stage is no longer existent, but the problem remains that the American policy is 100% identical to the Israeli policy. We have not found an American position condemning the massacres in Palestine and particularly in Gaza. The missiles launched by the resistance were a reaction to the Israeli aggressors, who own American fighter jets that are never used but in massive warfare . . . .
"We in the region therefore consider the American policy responsible for whatever Israel does, because there is a strategic alliance between Israel and America in all the aggressions carried out by Israel. There is an impression in the Arab region, that might be controversial, that Israel is the one ruling the United States and not the other way around. America is one of the Jewish colonies."
Does the Ayatollah believe that?
"I am close," he says. "Anyway, we believe that Obama lived in a poor and disadvantaged environment. He was poor. Therefore, we might listen to some of his statements trying to alleviate taxes on the poor and impose them on the rich. We say to him: Be with the disadvantaged, be with the poor, be with the people living and seeking their humanity, and you will be the best American president in history. Be humane."
The interview is over. We pose for pictures and the Ayatollah presents me with an English translation of one of his books: "Islam: The Religion of Dialogue." He signs it for me in Arabic: "With my affection and prayers."
Mr. Pollock is the Journal's editorial features editor.
WSJ, Beirut, Mar 16, 2009, page A7
'I have not found in the whole long history of the Arab-Israeli conflict even one neutral American position. We used to love America in the region in the '40s. [President Woodrow] Wilson's principles [of national self-determination] represent freedom facing a Europe that was colonizing us. But America now is living a policy worse than that of British and French colonialism."
So said Muhammad Hussein Fadhlullah early one morning last week, and I suppose I should not have been surprised.
We met in a nondescript -- but heavily guarded -- office building in south Beirut. On my way there I had noticed, as in the Bekaa Valley a day earlier, numerous posters celebrating Hezbollah "martyrs." According to many, the Grand Ayatollah Fadhlullah is Hezbollah's spiritual leader. He is not actually a member of the famous Lebanese Shiite organization headed by Hassan Nasrallah. But his interpreter tells me the Israelis bombed his house during their 2006 air campaign in Lebanon. There is no doubt someone -- the CIA and the Saudis, according to a detailed account in Bob Woodward's book "Veil" -- targeted him in 1985, when a massive bomb aimed in his direction killed nearly 80 civilians in Beirut.
That, readers may recall, was not long after alleged Hezbollah suicide bombers directed by the late Imad Mugniyeh -- one of the "martyrs" celebrated in the posters -- murdered hundreds at the American Embassy and Marine barracks. And it was in the midst of the hostage crises that would define Lebanon in the minds of my own generation of Americans. Outside of the Iranian theocrats, no group did more than Hezbollah to associate Shiism, once known for its political quietism, with radicalism and terror.
And what of Mr. Fadhlullah today? The aging cleric (born 1935), sports the requisite black turban and a disarming twinkle in his eyes. He is often described as a "progressive" religious thinker because of views such as his egalitarian outlook on the role of women in Muslim society (he is online at english.bayynat.org.lb). Yet there can be little doubt the Ayatollah's views have also shaped, and been shaped by, the fragile and often violent country he has called home since the mid-1960s.
The Lebanese-born scholar Fouad Ajami draws my attention to Mr. Fadhlullah's preface to the 1984 edition of his book, "Islam and the Logic of Force": "Civilization does not mean that you face a rocket with a stick or a jet-fighter with a kite, or a warship with a sailboat. . . . One must face force with equal or superior force. If it is legitimate to defend self and land and destiny, then all means of self-defense are legitimate."
I decide to start our interview by asking what people mean when they describe him in "progressive" terms. "When man thinks," he tells me, "he should live in his own age, not think through the past . . . When I am in dialogue with anyone, I attempt to study their mind and to speak to them in the language of their mind, not to address them in the way I think but rather in the way they think. On this basis we begin this dialogue with you."
Mr. Fadhlullah tells me that though he is originally Lebanese, he was born in Najaf, Iraq, where his father was a teacher at the Hawza, or religious seminary, from which he would eventually earn his current distinction. (He holds the same rank as Iraq's Ali Sistani; Shiites recognize a small number of "grand ayatollahs" who issue religious rulings known as fatwas and serve as objects of "emulation.") He says his international upbringing shaped his way of thinking.
I ask if he thinks Iraq is better off now than it was under Saddam. Iraq had a problem with "dictatorship," he concedes. But this "dictatorship had a relationship with the former American administration," he says, pointing to Saddam's invasion of Iran and other actions that allegedly "serv[ed] the American strategy . . . Saddam Hussein was an employee of the CIA but his job was finished by the end." He accuses the Bush administration of pursuing a policy of "constructive chaos" during the occupation.
Mr. Fadhlullah's fellow Shiite scholars in Najaf have been heard to complain about such sour pronouncements, but I see no reason to belabor the point. There is a rivalry of sorts with Mr. Sistani. And when it comes to the upcoming parliamentary elections in Lebanon -- the country shook off Syrian occupation in 2005, some say inspired by Iraq -- Mr. Fadhlullah even points to the West as a good example:
"We hope that that the elections will be as free as in civilized nations. Our problem in the Arab world is that people fear their rulers and therefore fall short of changing them, whereas the natural course of things is that rulers should fear their peoples. . . . We appreciate the way elections are run in America or the West; the Americans or the Europeans are not frozen over one personality. They study the success or failure of this president or this administration, and therefore they change it from time to time."
I point out that many people associate political Shiism with Iran and a concept known as Welayat al-Faqih -- or Guardianship of the Jurist -- which has been used to justify the authoritarian regimes of the Ayatollahs Khomeini and Khameini.
"I don't believe that Welayat al-Faqih has any role in Lebanon," Mr. Fadhlullah says without hesitation. "Perhaps some Lebanese commit themselves to the policy of the Guardian Jurist, as some of them commit themselves to the policy of the Vatican [Lebanon's large Maronite community is Catholic]. My opinion is that I don't see the Guardianship of the Jurist as the definitive Islamic regime."
When a Muslim goes to vote should he care more about a cleric's opinion than anyone else's?
"He should care about his own stance . . . . The Islamic idea says: When you cast your ballot, you have to watch for God because God will hold you responsible for the results of this ballot. If the person you voted for was unjust, God will hold you accountable for participating in his injustice. . . . Hence, the Americans who voted for George Bush are responsible for all the blood shed in his wars and occupations."
That seems as good an opening as any to broach the subject of Hezbollah. Does he think it's healthy that Lebanon's Shiites are increasingly associated with such a party?
His answer, in effect, is that Hezbollah is a force for modernization: "Hezbollah is a group of Shiites who are university educated. We know that you will find at universities, whether here in Lebanon or in the West, many who agree with the thought of Hezbollah." True enough, at least as concerns attitudes toward Israel.
Then the answer gets more interesting: "We do not reject the West. But we disagree with some Western administrations. We believe that America is not the administration ruling America. America is rather the universities, the research centers and the American people. That is why we want to be friends with the American people with all their variation. I was the first Islamic figure to denounce what happened on September 11. I issued a press release after four hours saying that this affair is not acceptable by any mind, divine law or religion. What these people did was directed to the American people not to the American administration."
I can't help but interject. Hadn't he just told me the American people were in fact responsible for the actions of the leaders they voted for?
He responds that the people bear "a responsibility," but concedes they can't predict their leaders' future actions. "What I am trying to say," he continues, "is that perhaps we want to be friends with the American people to engage them in a dialogue about their choices as they engage in a dialogue about our choices. Friendship does not mean adhering to whatever your friend commits to and does. Dialogue strengthens friendship; it does not annul it."
What does the Ayatollah think of President Obama? Does he think he might improve relations between the Islamic world and the United States?
Again, an interesting answer: "I think that some of his statements show that he believes in the method of dialogue. But here is an important point: America is not ruled by a person, it is ruled by institutions. The question is what is the influence of institutions like the Congress and others on the president. Can the president, if he has private opinions, can he carry them out facing institutions and conditions challenging the administration? We, in the Arab countries or in the East, we don't have institutions. The ruler is one person or one family. Therefore the people cannot object.
"We wish that President Obama tries with all his mandate to confirm the slogans he launched while still a candidate, that he tries with all power to make the world a field of dialogue not a field of war. We don't have a problem with any American president, but our problem is with his policy that might affect our strategic interest. We love freedom, therefore we are with whoever lives with us on the basis that we are free."
But didn't George Bush say that he wanted to bring freedom and democracy to the Middle East? Was he not sincere in those words?
"Does occupation . . . ?" He pauses. "Could democracy be forced upon peoples? Does occupation represent a title of democracy for people? Democracy sets out from the free choices of peoples. Therefore President Bush managed to get America hated everywhere in the world. His policy was the mentality of war, not a humane mentality. He might have spoken about 'peace,' but he saved 'war' inside the word 'peace.' That is why he was even rejected by American public opinion."
I raise Hezbollah again. Does the Iranian-backed group have Lebanon's best interests at heart? Or does it have ambitions outside Lebanon? For whom is it working?
"I don't think that the Lebanese Hezbollah has a project beyond Lebanon. Because it does not have the capacity to do so . . . . Hezbollah emerged in Lebanon as a reaction to the recurrent Israeli aggression over decades. The Lebanese army is weak with regard to its power of deterrence. Therefore it cannot face any Israeli aggression. Hezbollah is supplementary to the Lebanese Army defending the country. If the Lebanese Army reaches a level of strength enabling it to defend the country, there would be no longer a need for the resistance."
And what about the posters, I ask? Imad Mugniyeh didn't just fight Israel, he killed a lot of Americans. Does he think the children of the neighborhood should look at the posters and think Mugniyeh is a hero?
"I think that the stage Lebanon lived [when the Americans were killed] was one without clear limitations. It is very natural that the American policy was interconnected with the Israeli policy. The stage when this took place was one of the Cold War between the Soviet Union and the West. Therefore the issue was not setting out from a person, but from the conflict between the East and the West, and through the political and security anarchy in Lebanon. In my own belief, this stage is no longer existent, but the problem remains that the American policy is 100% identical to the Israeli policy. We have not found an American position condemning the massacres in Palestine and particularly in Gaza. The missiles launched by the resistance were a reaction to the Israeli aggressors, who own American fighter jets that are never used but in massive warfare . . . .
"We in the region therefore consider the American policy responsible for whatever Israel does, because there is a strategic alliance between Israel and America in all the aggressions carried out by Israel. There is an impression in the Arab region, that might be controversial, that Israel is the one ruling the United States and not the other way around. America is one of the Jewish colonies."
Does the Ayatollah believe that?
"I am close," he says. "Anyway, we believe that Obama lived in a poor and disadvantaged environment. He was poor. Therefore, we might listen to some of his statements trying to alleviate taxes on the poor and impose them on the rich. We say to him: Be with the disadvantaged, be with the poor, be with the people living and seeking their humanity, and you will be the best American president in history. Be humane."
The interview is over. We pose for pictures and the Ayatollah presents me with an English translation of one of his books: "Islam: The Religion of Dialogue." He signs it for me in Arabic: "With my affection and prayers."
Mr. Pollock is the Journal's editorial features editor.
Why the GOP Can't Win With Minorities
Why the GOP Can't Win With Minorities. By Shelby Steele
WSJ, Mar 16, 2009
Today conservatism is stigmatized in our culture as an antiminority political philosophy. In certain quarters, conservatism is simply racism by another name. And minorities who openly identify themselves as conservatives are still novelties, fish out of water.
Yet there is now the feeling that without an appeal to minorities, conservatism is at risk of marginalization. The recent election revealed a Republican Party -- largely white, male and Southern -- seemingly on its way to becoming a "regional" party. Still, an appeal targeted just at minorities -- reeking as it surely would of identity politics -- is anathema to most conservatives. Can't it be assumed, they would argue, that support of classic principles -- individual freedom and equality under the law -- constitutes support of minorities? And, given the fact that blacks and Hispanics often poll more conservatively than whites on most social issues, shouldn't there be an easy simpatico between these minorities and political conservatism?
But of course the reverse is true. There is an abiding alienation between the two -- an alienation that I believe is the great new challenge for both modern conservatism and formerly oppressed minorities. Oddly, each now needs the other to evolve.
Yet why this alienation to begin with? Can it be overcome?
I think it began in a very specific cultural circumstance: the dramatic loss of moral authority that America suffered in the 1960s after openly acknowledging its long mistreatment of blacks and other minorities. Societies have moral accountability, and they cannot admit to persecuting a race of people for four centuries without losing considerable moral legitimacy. Such a confession -- honorable as it may be -- virtually calls out challenges to authority. And in the 1960s challenges emerged from everywhere -- middle-class white kids rioted for "Free Speech" at Berkeley, black riots decimated inner cities across the country, and violent antiwar protests were ubiquitous. America suddenly needed a conspicuous display of moral authority in order to defend the legitimacy of its institutions against relentless challenge.
This was the circumstance that opened a new formula for power in American politics: redemption. If you could at least seem to redeem America of its past sins, you could win enough moral authority to claim real political power. Lyndon Johnson devastated Barry Goldwater because -- among other reasons -- he seemed bent on redeeming America of its shameful racist past, while Goldwater's puritanical libertarianism precluded his even supporting the 1964 Civil Rights Act. Johnson's Great Society grandly advertised a new American racial innocence. If it utterly failed to "end poverty in our time," it succeeded -- through a great display of generosity toward minorities and the poor -- in recovering enough moral authority to see the government through the inexorable challenges of the '60s.
When redemption became a term of power, "redemptive liberalism" was born -- a new activist liberalism that gave itself a "redemptive" profile by focusing on social engineering rather than liberalism's classic focus on individual freedom. In the '60s there was no time to allow individual freedom to render up the social good. Redemptive liberalism would proactively engineer the good. Name a good like "integration," and then engineer it into being through a draconian regimen of school busing. If the busing did profound damage to public education in America, it gave liberals the right to say, "At least we did something!" In other words, we are activists against America's old sin of segregation. Activism is moral authority in redemptive liberalism.
But conservatism sees moral authority more in a discipline of principles than in activism. It sees ideas of the good like "diversity" as mere pretext for the social engineering that always leads to unintended and oppressive consequences. Conservatism would enforce the principles that ensure individual freedom, and then allow "the good" to happen by "invisible hand."
And here is conservatism's great problem with minorities. In an era when even failed moral activism is redemptive -- and thus a source of moral authority and power -- conservatism stands flat-footed with only discipline to offer. It has only an invisible hand to compete with the activism of the left. So conservatism has no way to show itself redeemed of America's bigoted past, no way like the Great Society to engineer a grand display of its innocence, and no way to show deference to minorities for the oppression they endured. Thus it seems to be in league with that oppression.
Added to this, American minorities of color -- especially blacks -- are often born into grievance-focused identities. The idea of grievance will seem to define them in some eternal way, and it will link them atavistically to a community of loved ones. To separate from grievance -- to say simply that one is no longer racially aggrieved -- will surely feel like an act of betrayal that threatens to cut one off from community, family and history. So, paradoxically, a certain chauvinism develops around one's sense of grievance. Today the feeling of being aggrieved by American bigotry is far more a matter of identity than of actual aggrievement.
And this identity calls minorities to an anticonservative orientation to American politics. It makes for an almost ancestral resistance to conservatism. One's identity of grievance is flattered by the moral activism of the left and offended by the invisible hand of the right. Minorities feel they were saved from oppression by the left's activism, not by the right's discipline. The truth doesn't matter much here (in fact it took both activism and principle, civil war and social movement, to end this oppression). But activism indicates moral anguish in whites, and so it constitutes the witness minorities crave. They feel seen, understood. With the invisible hand the special case of their suffering doesn't count for much, and they go without witness.
So here stands contemporary American conservatism amidst its cultural liabilities and, now, its electoral failures -- with no mechanism to redeem America of its shames, atavistically resisted by minorities, and vulnerable to stigmatization as a bigoted and imperialistic political orientation. Today's liberalism may stand on decades of failed ideas, but it is failure in the name of American redemption. It remains competitive with -- even ascendant over -- conservatism because it addresses America's moral accountability to its past with moral activism. This is the left's great power, and a good part of the reason Barack Obama is now the president of the United States. No matter his failures -- or the fruitlessness of his extravagant and scatter-gun governmental activism -- he redeems America of an ugly past. How does conservatism compete with this?
The first impulse is to moderate. With "compassionate conservatism" and "affirmative access" and "faith-based initiatives," President George W. Bush tried to show a redemptive conservatism that could be activist against the legacy of America's disgraceful past. And it worked electorally by moderating the image of conservatives as uncaring disciplinarians. But in the end it was only a marketer's ploy -- a shrewd advertisement with no actual product to sell.
What drew me to conservatism years ago was the fact that it gave discipline a slightly higher status than virtue. This meant it could not be subverted by passing notions of the good. It could be above moral vanity. And so it made no special promises to me as a minority. It neglected me in every way except as a human being who wanted freedom. Until my encounter with conservatism I had only known the racial determinism of segregation on the one hand and of white liberalism on the other -- two varieties of white supremacy in which I could only be dependent and inferior.
The appeal of conservatism is the mutuality it asserts between individual and political freedom, its beautiful idea of a free man in a free society. And it offers minorities the one thing they can never get from liberalism: human rather than racial dignity. I always secretly loved Malcolm X more than Martin Luther King Jr. because Malcolm wanted a fuller human dignity for blacks -- one independent of white moral wrestling. In a liberalism that wants to redeem the nation of its past, minorities can only be ciphers in white struggles of conscience.
Liberalism's glamour follows from its promise of a new American innocence. But the appeal of conservatism is relief from this supercilious idea. Innocence is not possible for America. This nation did what it did. And conservatism's appeal is that it does not bank on the recovery of lost innocence. It seeks the discipline of ordinary people rather than the virtuousness of extraordinary people. The challenge for conservatives today is simply self-acceptance, and even a little pride in the way we flail away at problems with an invisible hand.
Mr. Steele is a research fellow at Stanford University's Hoover Institution.
WSJ, Mar 16, 2009
Today conservatism is stigmatized in our culture as an antiminority political philosophy. In certain quarters, conservatism is simply racism by another name. And minorities who openly identify themselves as conservatives are still novelties, fish out of water.
Yet there is now the feeling that without an appeal to minorities, conservatism is at risk of marginalization. The recent election revealed a Republican Party -- largely white, male and Southern -- seemingly on its way to becoming a "regional" party. Still, an appeal targeted just at minorities -- reeking as it surely would of identity politics -- is anathema to most conservatives. Can't it be assumed, they would argue, that support of classic principles -- individual freedom and equality under the law -- constitutes support of minorities? And, given the fact that blacks and Hispanics often poll more conservatively than whites on most social issues, shouldn't there be an easy simpatico between these minorities and political conservatism?
But of course the reverse is true. There is an abiding alienation between the two -- an alienation that I believe is the great new challenge for both modern conservatism and formerly oppressed minorities. Oddly, each now needs the other to evolve.
Yet why this alienation to begin with? Can it be overcome?
I think it began in a very specific cultural circumstance: the dramatic loss of moral authority that America suffered in the 1960s after openly acknowledging its long mistreatment of blacks and other minorities. Societies have moral accountability, and they cannot admit to persecuting a race of people for four centuries without losing considerable moral legitimacy. Such a confession -- honorable as it may be -- virtually calls out challenges to authority. And in the 1960s challenges emerged from everywhere -- middle-class white kids rioted for "Free Speech" at Berkeley, black riots decimated inner cities across the country, and violent antiwar protests were ubiquitous. America suddenly needed a conspicuous display of moral authority in order to defend the legitimacy of its institutions against relentless challenge.
This was the circumstance that opened a new formula for power in American politics: redemption. If you could at least seem to redeem America of its past sins, you could win enough moral authority to claim real political power. Lyndon Johnson devastated Barry Goldwater because -- among other reasons -- he seemed bent on redeeming America of its shameful racist past, while Goldwater's puritanical libertarianism precluded his even supporting the 1964 Civil Rights Act. Johnson's Great Society grandly advertised a new American racial innocence. If it utterly failed to "end poverty in our time," it succeeded -- through a great display of generosity toward minorities and the poor -- in recovering enough moral authority to see the government through the inexorable challenges of the '60s.
When redemption became a term of power, "redemptive liberalism" was born -- a new activist liberalism that gave itself a "redemptive" profile by focusing on social engineering rather than liberalism's classic focus on individual freedom. In the '60s there was no time to allow individual freedom to render up the social good. Redemptive liberalism would proactively engineer the good. Name a good like "integration," and then engineer it into being through a draconian regimen of school busing. If the busing did profound damage to public education in America, it gave liberals the right to say, "At least we did something!" In other words, we are activists against America's old sin of segregation. Activism is moral authority in redemptive liberalism.
But conservatism sees moral authority more in a discipline of principles than in activism. It sees ideas of the good like "diversity" as mere pretext for the social engineering that always leads to unintended and oppressive consequences. Conservatism would enforce the principles that ensure individual freedom, and then allow "the good" to happen by "invisible hand."
And here is conservatism's great problem with minorities. In an era when even failed moral activism is redemptive -- and thus a source of moral authority and power -- conservatism stands flat-footed with only discipline to offer. It has only an invisible hand to compete with the activism of the left. So conservatism has no way to show itself redeemed of America's bigoted past, no way like the Great Society to engineer a grand display of its innocence, and no way to show deference to minorities for the oppression they endured. Thus it seems to be in league with that oppression.
Added to this, American minorities of color -- especially blacks -- are often born into grievance-focused identities. The idea of grievance will seem to define them in some eternal way, and it will link them atavistically to a community of loved ones. To separate from grievance -- to say simply that one is no longer racially aggrieved -- will surely feel like an act of betrayal that threatens to cut one off from community, family and history. So, paradoxically, a certain chauvinism develops around one's sense of grievance. Today the feeling of being aggrieved by American bigotry is far more a matter of identity than of actual aggrievement.
And this identity calls minorities to an anticonservative orientation to American politics. It makes for an almost ancestral resistance to conservatism. One's identity of grievance is flattered by the moral activism of the left and offended by the invisible hand of the right. Minorities feel they were saved from oppression by the left's activism, not by the right's discipline. The truth doesn't matter much here (in fact it took both activism and principle, civil war and social movement, to end this oppression). But activism indicates moral anguish in whites, and so it constitutes the witness minorities crave. They feel seen, understood. With the invisible hand the special case of their suffering doesn't count for much, and they go without witness.
So here stands contemporary American conservatism amidst its cultural liabilities and, now, its electoral failures -- with no mechanism to redeem America of its shames, atavistically resisted by minorities, and vulnerable to stigmatization as a bigoted and imperialistic political orientation. Today's liberalism may stand on decades of failed ideas, but it is failure in the name of American redemption. It remains competitive with -- even ascendant over -- conservatism because it addresses America's moral accountability to its past with moral activism. This is the left's great power, and a good part of the reason Barack Obama is now the president of the United States. No matter his failures -- or the fruitlessness of his extravagant and scatter-gun governmental activism -- he redeems America of an ugly past. How does conservatism compete with this?
The first impulse is to moderate. With "compassionate conservatism" and "affirmative access" and "faith-based initiatives," President George W. Bush tried to show a redemptive conservatism that could be activist against the legacy of America's disgraceful past. And it worked electorally by moderating the image of conservatives as uncaring disciplinarians. But in the end it was only a marketer's ploy -- a shrewd advertisement with no actual product to sell.
What drew me to conservatism years ago was the fact that it gave discipline a slightly higher status than virtue. This meant it could not be subverted by passing notions of the good. It could be above moral vanity. And so it made no special promises to me as a minority. It neglected me in every way except as a human being who wanted freedom. Until my encounter with conservatism I had only known the racial determinism of segregation on the one hand and of white liberalism on the other -- two varieties of white supremacy in which I could only be dependent and inferior.
The appeal of conservatism is the mutuality it asserts between individual and political freedom, its beautiful idea of a free man in a free society. And it offers minorities the one thing they can never get from liberalism: human rather than racial dignity. I always secretly loved Malcolm X more than Martin Luther King Jr. because Malcolm wanted a fuller human dignity for blacks -- one independent of white moral wrestling. In a liberalism that wants to redeem the nation of its past, minorities can only be ciphers in white struggles of conscience.
Liberalism's glamour follows from its promise of a new American innocence. But the appeal of conservatism is relief from this supercilious idea. Innocence is not possible for America. This nation did what it did. And conservatism's appeal is that it does not bank on the recovery of lost innocence. It seeks the discipline of ordinary people rather than the virtuousness of extraordinary people. The challenge for conservatives today is simply self-acceptance, and even a little pride in the way we flail away at problems with an invisible hand.
Mr. Steele is a research fellow at Stanford University's Hoover Institution.
WaPo: Gay couples should be allowed to stay together in the US
Separation Anxiety. WaPo Editorial
Gay couples should be allowed to stay together in the United States.
Monday, March 16, 2009; A16
THE UNITING American Families Act would allow gay and lesbian Americans and permanent residents to sponsor their foreign-born partners for legal residency in the United States. The bill, introduced last month in the Senate by Patrick Leahy (D-Vt.) and in the House by Jerrold Nadler (D-N.Y.), would add "permanent partner" and "permanent partnership" after the words "spouse" and "marriage" in relevant sections of the Immigration and Nationality Act. If passed, it would right a gross unfairness.
Under the proposal, a "permanent partnership" is defined as a "committed, intimate relationship" with another adult "in which both parties intend a lifelong commitment." The couple must be financially interdependent and not married to or in a permanent partnership with anyone else. And the partners can't be related. The benefit comes with the same immigration restrictions and enforcement standards that apply to heterosexual couples. Fraudulent permanent partnerships face the same penalties as fake marriages: up to five years in prison and up to a $250,000 fine.
"Under current law, committed same-sex foreign partners of American citizens are unable to use the family immigration system, which accounts for a majority of the green cards and immigrant visas granted annually by the United States," Mr. Leahy said upon introducing the bill. "The promotion of family unity has long been part of federal immigration policy, and we should honor that principle by providing all Americans the opportunity to be with their loved ones." According to the most recent census, he added, about 35,000 binational, same-sex couples are living in the United States. The new legislation would ensure that the family connections valued under immigration law are extended to gays and lesbians.
The strain of the status quo on gay and lesbian binational couples should not be discounted. Because their relationships are not legally recognized by the United States, some couples have resorted to illegal marriages where the foreign nationals marry Americans to get green cards that allow them to stay in the country permanently. In other cases, Americans have exiled themselves to be with their partners. Sixteen countries, including Australia, Brazil, Canada, Israel, South Africa and the United Kingdom, allow residents to sponsor same-sex permanent partners for legal immigration. American gays and lesbians should not have to choose between their country and their partners.
Gay couples should be allowed to stay together in the United States.
Monday, March 16, 2009; A16
THE UNITING American Families Act would allow gay and lesbian Americans and permanent residents to sponsor their foreign-born partners for legal residency in the United States. The bill, introduced last month in the Senate by Patrick Leahy (D-Vt.) and in the House by Jerrold Nadler (D-N.Y.), would add "permanent partner" and "permanent partnership" after the words "spouse" and "marriage" in relevant sections of the Immigration and Nationality Act. If passed, it would right a gross unfairness.
Under the proposal, a "permanent partnership" is defined as a "committed, intimate relationship" with another adult "in which both parties intend a lifelong commitment." The couple must be financially interdependent and not married to or in a permanent partnership with anyone else. And the partners can't be related. The benefit comes with the same immigration restrictions and enforcement standards that apply to heterosexual couples. Fraudulent permanent partnerships face the same penalties as fake marriages: up to five years in prison and up to a $250,000 fine.
"Under current law, committed same-sex foreign partners of American citizens are unable to use the family immigration system, which accounts for a majority of the green cards and immigrant visas granted annually by the United States," Mr. Leahy said upon introducing the bill. "The promotion of family unity has long been part of federal immigration policy, and we should honor that principle by providing all Americans the opportunity to be with their loved ones." According to the most recent census, he added, about 35,000 binational, same-sex couples are living in the United States. The new legislation would ensure that the family connections valued under immigration law are extended to gays and lesbians.
The strain of the status quo on gay and lesbian binational couples should not be discounted. Because their relationships are not legally recognized by the United States, some couples have resorted to illegal marriages where the foreign nationals marry Americans to get green cards that allow them to stay in the country permanently. In other cases, Americans have exiled themselves to be with their partners. Sixteen countries, including Australia, Brazil, Canada, Israel, South Africa and the United Kingdom, allow residents to sponsor same-sex permanent partners for legal immigration. American gays and lesbians should not have to choose between their country and their partners.
Are depressions “green”?
Are depressions “green”?, by Marlo Lewis
Master Resource, March 16, 2009
Cambridge University economist Dr. Terry Barker told delegates at the recent Copenhagen climate conference that if the current economic downturn persists for several years, carbon dioxide (CO2) emissions worldwide could drop by 40% to 50%, the Irish Times reports.
Dr. Barker, who is director of the Cambridge Center for Climate Research, said the Great Depression of the 1930s reduced global emissions by 35% because so many factories shut down, especially in the United States. He adds:
The depression could be worse this time because of globalization. Emissions in the U.S. fell by 3 per cent last year and could fall by 10 to 20 per cent this year because the economy is dropping like a stone with up to 600,000 a month becoming unemployed.
The former Soviet Union provides additional proof of the emission-cutting power of economic collapse. In CO2 Emissions from Fuel Combustion Highlights (2005 Edition), the International Energy Agency reports the following emission reductions during 1990-2003: Bulgaria, 38%; Estonia, 35.3%, Latvia, 52.3%, Lithuania, 43.5%, Romania, 43.3%; Russia, 24.5%, Slovak Republic, 30.2%; and Ukraine, 50.1%.
So clearly, governments do have the power to achieve deep emission cuts in in a single decade or even in a few years. However, there’s not a shred of historical evidence that they can do this without first engineering severe economic contractions.
You might suppose Dr. Barker would worry that, if depressions produce deep emission cuts, then maybe mandating deep emission cuts would produce or prolong depressions, by making energy unaffordable.
But no, Barker reportedly views the current depression as a golden opportunity to launch a “Green New Deal.” He opines that, ”Even very stringent reductions in emissions can create a macroeconomic benefit, if governments go about it the right way.” This is but a green variant of the fatal conceit that elites know better than markets how to direct economic development. Government interventions in credit and housing markets are the root cause of the ongoing financial crisis. Yet instead of humbling would-be central planners, each policy disaster just seems to feed their hubris.
You hear Barker’s message all the time. The revenues from carbon permit auctions or carbon taxes will be used to lower taxes on capital and labor, and fund R&D, making us more prosperous and competitive.
But if taxes on labor and capital are too high (they are), that’s an argument for cutting those taxes, not for imposing new or higher taxes on energy. So-called green industries and jobs were bit players even when the economy was booming. That’s because even when credit markets were flush and fossil energy prices were high, green industries were relatively unproductive. For example, as my colleague Iain Murray estimates, one coal-industry job supports seven times as much electricity as one wind-industry job.
It strains credulity to claim that diverting capital and labor from, e.g., the coal industry to the wind industry will create a macroeconomic benefit, or that economy recovery can be built on jobs and industries that depended heavily on subsidies, tax preferences, and mandates even in prosperous times.
Master Resource, March 16, 2009
Cambridge University economist Dr. Terry Barker told delegates at the recent Copenhagen climate conference that if the current economic downturn persists for several years, carbon dioxide (CO2) emissions worldwide could drop by 40% to 50%, the Irish Times reports.
Dr. Barker, who is director of the Cambridge Center for Climate Research, said the Great Depression of the 1930s reduced global emissions by 35% because so many factories shut down, especially in the United States. He adds:
The depression could be worse this time because of globalization. Emissions in the U.S. fell by 3 per cent last year and could fall by 10 to 20 per cent this year because the economy is dropping like a stone with up to 600,000 a month becoming unemployed.
The former Soviet Union provides additional proof of the emission-cutting power of economic collapse. In CO2 Emissions from Fuel Combustion Highlights (2005 Edition), the International Energy Agency reports the following emission reductions during 1990-2003: Bulgaria, 38%; Estonia, 35.3%, Latvia, 52.3%, Lithuania, 43.5%, Romania, 43.3%; Russia, 24.5%, Slovak Republic, 30.2%; and Ukraine, 50.1%.
So clearly, governments do have the power to achieve deep emission cuts in in a single decade or even in a few years. However, there’s not a shred of historical evidence that they can do this without first engineering severe economic contractions.
You might suppose Dr. Barker would worry that, if depressions produce deep emission cuts, then maybe mandating deep emission cuts would produce or prolong depressions, by making energy unaffordable.
But no, Barker reportedly views the current depression as a golden opportunity to launch a “Green New Deal.” He opines that, ”Even very stringent reductions in emissions can create a macroeconomic benefit, if governments go about it the right way.” This is but a green variant of the fatal conceit that elites know better than markets how to direct economic development. Government interventions in credit and housing markets are the root cause of the ongoing financial crisis. Yet instead of humbling would-be central planners, each policy disaster just seems to feed their hubris.
You hear Barker’s message all the time. The revenues from carbon permit auctions or carbon taxes will be used to lower taxes on capital and labor, and fund R&D, making us more prosperous and competitive.
But if taxes on labor and capital are too high (they are), that’s an argument for cutting those taxes, not for imposing new or higher taxes on energy. So-called green industries and jobs were bit players even when the economy was booming. That’s because even when credit markets were flush and fossil energy prices were high, green industries were relatively unproductive. For example, as my colleague Iain Murray estimates, one coal-industry job supports seven times as much electricity as one wind-industry job.
It strains credulity to claim that diverting capital and labor from, e.g., the coal industry to the wind industry will create a macroeconomic benefit, or that economy recovery can be built on jobs and industries that depended heavily on subsidies, tax preferences, and mandates even in prosperous times.
Sunday, March 15, 2009
Chas Freeman: His wit and wisdom - compilation of statements
Chas Freeman: His wit and wisdom. By Scott Johnson
PowerLine Blog, Mar 15, 2009
Last weekend Martin Kramer compiled the statements of Saudi/Manchurian candidate Chas Freeman on al Qaeda and 9/11. Freeman is of course the former American ambassador to Saudi Arabia whom Obama administration DNI Dennis Blair appointed to chair the National Intelligence Council. In the spirit of Kramer's compilation, I thought it might be useful to collect in one place a few of the highlights of Freeman's keen analytical insight expressed over the years, grouped by subject with links to the sources.
Freeman on Tiananmen Square (May 2006):
I find the dominant view in China about this very plausible, i.e. that the truly unforgivable mistake of the Chinese authorities was the failure to intervene on a timely basis to nip the demonstrations in the bud, rather than -- as would have been both wise and efficacious -- to intervene with force when all other measures had failed to restore domestic tranquility to Beijing and other major urban centers in China. In this optic, the Politburo's response to the mob scene at "Tian'anmen" stands as a monument to overly cautious behavior on the part of the leadership, not as an example of rash action.
For myself, I side on this -- if not on numerous other issues -- with Gen. Douglas MacArthur. I do not believe it is acceptable for any country to allow the heart of its national capital to be occupied by dissidents intent on disrupting the normal functions of government, however appealing to foreigners their propaganda may be. Such folk, whether they represent a veterans' "Bonus Army" or a "student uprising" on behalf of "the goddess of democracy" should expect to be displaced with despatch from the ground they occupy. I cannot conceive of any American government behaving with the ill-conceived restraint that the Zhao Ziyang administration did in China, allowing students to occupy zones that are the equivalent of the Washington National Mall and Times Square, combined. while shutting down much of the Chinese government's normal operations. I thus share the hope of the majority in China that no Chinese government will repeat the mistakes of Zhao Ziyang's dilatory tactics of appeasement in dealing with domestic protesters in China.
Freeman on Saudi education (December 2000):
It is widely charged in the United States that Saudi Arabian education teaches hateful and evil things. I do not think that is the case.
Freeman on Saudi Arabian King Abdullah (October 2008):
I believe King Abdullah is very rapidly becoming Abdullah the Great.
Freeman on 9/11 (October 2005):
I simply want to register what I think is an obvious point:; namely that what 9/11 showed is that if we bomb people, they bomb back.
Freeman revisits 9/11 (October 2006):
Americans need to be clear about the consequences of continuing our current counterproductive approaches to security in the Middle East. We have paid heavily and often in treasure in the past for our unflinching support and unstinting subsidies of Israel's approach to managing its relations with the Arabs. Five years ago we began to pay with the blood of our citizens here at home. We are now paying with the lives of our soldiers, sailors, airmen, and marines on battlefields in several regions of the realm of Islam, with more said by our government's neoconservative mentors to be in prospect.
Freeman on the Arab-Israeli conflict (October 2006):
Demonstrably, Israel excels at war; sadly, it has shown no talent for peace.
Freeman on Israeli intransigence (May 2007):
Israel no longer even pretends to seek peace with the Palestinians; it strives instead to pacify them.
Freeman on Israel's harm to America (May 2007):
American identification with Israeli policy has also become total. Those in the region and beyond it who detest Israeli behavior, which is to say almost everyone, now naturally extend their loathing to Americans. This has had the effect of universalizing anti-Americanism, legitimizing radical Islamism, and gaining Iran a foothold among Sunni as well as Shiite Arabs. For its part, Israel no longer even pretends to seek peace with the Palestinians; it strives instead to pacify them. Palestinian retaliation against this policy is as likely to be directed against Israel's American backers as against Israel itself. Under the circumstances, such retaliation - whatever form it takes - will have the support or at least the sympathy of most people in the region and many outside it. This makes the long-term escalation of terrorism against the United States a certainty, not a matter of conjecture.
Freeman on the role of American Jews (October 2006):
[H]istory and the Israeli response to date both strongly suggest that without some tough love from Americans, including especially Israel's American coreligionists, Israel will not risk the uncertainties of peace.
Freeman on the withdrawal of his appointment (March 2009):
The libels on me and their easily traceable email trails show conclusively that there is a powerful lobby determined to prevent any view other than its own from being aired, still less to factor in American understanding of trends and events in the Middle East. The tactics of the Israel Lobby plumb the depths of dishonor and indecency and include character assassination, selective misquotation, the willful distortion of the record, the fabrication of falsehoods, and an utter disregard for the truth. The aim of this Lobby is control of the policy process through the exercise of a veto over the appointment of people who dispute the wisdom of its views, the substitution of political correctness for analysis, and the exclusion of any and all options for decision by Americans and our government other than those that it favors....
I regret that my willingness to serve the new administration has ended by casting doubt on its ability to consider, let alone decide what policies might best serve the interests of the United States rather than those of a Lobby intent on enforcing the will and interests of a foreign government.
Freeman on his one regret regarding his withdrawal statement (March 2009):
The only thing I regret is that in my statement I embraced the term "Israel lobby." This isn't really a lobby by, for or about Israel. It's really, well, I've decided I'm going to call it from now on the [Avigdor] Lieberman lobby. It's the very right-wing Likud in Israel and its fanatic supporters here. And Avigdor Lieberman is really the guy that they really agree with. And I think they're doing Israel in.
In part via Andrew Bolt and The Blog (the Weekly Standard's Michael Goldfarb).
PowerLine Blog, Mar 15, 2009
Last weekend Martin Kramer compiled the statements of Saudi/Manchurian candidate Chas Freeman on al Qaeda and 9/11. Freeman is of course the former American ambassador to Saudi Arabia whom Obama administration DNI Dennis Blair appointed to chair the National Intelligence Council. In the spirit of Kramer's compilation, I thought it might be useful to collect in one place a few of the highlights of Freeman's keen analytical insight expressed over the years, grouped by subject with links to the sources.
Freeman on Tiananmen Square (May 2006):
I find the dominant view in China about this very plausible, i.e. that the truly unforgivable mistake of the Chinese authorities was the failure to intervene on a timely basis to nip the demonstrations in the bud, rather than -- as would have been both wise and efficacious -- to intervene with force when all other measures had failed to restore domestic tranquility to Beijing and other major urban centers in China. In this optic, the Politburo's response to the mob scene at "Tian'anmen" stands as a monument to overly cautious behavior on the part of the leadership, not as an example of rash action.
For myself, I side on this -- if not on numerous other issues -- with Gen. Douglas MacArthur. I do not believe it is acceptable for any country to allow the heart of its national capital to be occupied by dissidents intent on disrupting the normal functions of government, however appealing to foreigners their propaganda may be. Such folk, whether they represent a veterans' "Bonus Army" or a "student uprising" on behalf of "the goddess of democracy" should expect to be displaced with despatch from the ground they occupy. I cannot conceive of any American government behaving with the ill-conceived restraint that the Zhao Ziyang administration did in China, allowing students to occupy zones that are the equivalent of the Washington National Mall and Times Square, combined. while shutting down much of the Chinese government's normal operations. I thus share the hope of the majority in China that no Chinese government will repeat the mistakes of Zhao Ziyang's dilatory tactics of appeasement in dealing with domestic protesters in China.
Freeman on Saudi education (December 2000):
It is widely charged in the United States that Saudi Arabian education teaches hateful and evil things. I do not think that is the case.
Freeman on Saudi Arabian King Abdullah (October 2008):
I believe King Abdullah is very rapidly becoming Abdullah the Great.
Freeman on 9/11 (October 2005):
I simply want to register what I think is an obvious point:; namely that what 9/11 showed is that if we bomb people, they bomb back.
Freeman revisits 9/11 (October 2006):
Americans need to be clear about the consequences of continuing our current counterproductive approaches to security in the Middle East. We have paid heavily and often in treasure in the past for our unflinching support and unstinting subsidies of Israel's approach to managing its relations with the Arabs. Five years ago we began to pay with the blood of our citizens here at home. We are now paying with the lives of our soldiers, sailors, airmen, and marines on battlefields in several regions of the realm of Islam, with more said by our government's neoconservative mentors to be in prospect.
Freeman on the Arab-Israeli conflict (October 2006):
Demonstrably, Israel excels at war; sadly, it has shown no talent for peace.
Freeman on Israeli intransigence (May 2007):
Israel no longer even pretends to seek peace with the Palestinians; it strives instead to pacify them.
Freeman on Israel's harm to America (May 2007):
American identification with Israeli policy has also become total. Those in the region and beyond it who detest Israeli behavior, which is to say almost everyone, now naturally extend their loathing to Americans. This has had the effect of universalizing anti-Americanism, legitimizing radical Islamism, and gaining Iran a foothold among Sunni as well as Shiite Arabs. For its part, Israel no longer even pretends to seek peace with the Palestinians; it strives instead to pacify them. Palestinian retaliation against this policy is as likely to be directed against Israel's American backers as against Israel itself. Under the circumstances, such retaliation - whatever form it takes - will have the support or at least the sympathy of most people in the region and many outside it. This makes the long-term escalation of terrorism against the United States a certainty, not a matter of conjecture.
Freeman on the role of American Jews (October 2006):
[H]istory and the Israeli response to date both strongly suggest that without some tough love from Americans, including especially Israel's American coreligionists, Israel will not risk the uncertainties of peace.
Freeman on the withdrawal of his appointment (March 2009):
The libels on me and their easily traceable email trails show conclusively that there is a powerful lobby determined to prevent any view other than its own from being aired, still less to factor in American understanding of trends and events in the Middle East. The tactics of the Israel Lobby plumb the depths of dishonor and indecency and include character assassination, selective misquotation, the willful distortion of the record, the fabrication of falsehoods, and an utter disregard for the truth. The aim of this Lobby is control of the policy process through the exercise of a veto over the appointment of people who dispute the wisdom of its views, the substitution of political correctness for analysis, and the exclusion of any and all options for decision by Americans and our government other than those that it favors....
I regret that my willingness to serve the new administration has ended by casting doubt on its ability to consider, let alone decide what policies might best serve the interests of the United States rather than those of a Lobby intent on enforcing the will and interests of a foreign government.
Freeman on his one regret regarding his withdrawal statement (March 2009):
The only thing I regret is that in my statement I embraced the term "Israel lobby." This isn't really a lobby by, for or about Israel. It's really, well, I've decided I'm going to call it from now on the [Avigdor] Lieberman lobby. It's the very right-wing Likud in Israel and its fanatic supporters here. And Avigdor Lieberman is really the guy that they really agree with. And I think they're doing Israel in.
In part via Andrew Bolt and The Blog (the Weekly Standard's Michael Goldfarb).
Solar Energy Firms Leave Waste Behind in China
Solar Energy Firms Leave Waste Behind in China. By Ariana Eunjung Cha
Washington Post, Sunday, March 9, 2008; A01
GAOLONG, China -- The first time Li Gengxuan saw the dump trucks from the nearby factory pull into his village, he couldn't believe what happened. Stopping between the cornfields and the primary school playground, the workers dumped buckets of bubbling white liquid onto the ground. Then they turned around and drove right back through the gates of their compound without a word.
This ritual has been going on almost every day for nine months, Li and other villagers said.
In China, a country buckling with the breakneck pace of its industrial growth, such stories of environmental pollution are not uncommon. But the Luoyang Zhonggui High-Technology Co., here in the central plains of Henan Province near the Yellow River, stands out for one reason: It's a green energy company, producing polysilicon destined for solar energy panels sold around the world. But the byproduct of polysilicon production -- silicon tetrachloride -- is a highly toxic substance that poses environmental hazards.
"The land where you dump or bury it will be infertile. No grass or trees will grow in the place. . . . It is like dynamite -- it is poisonous, it is polluting. Human beings can never touch it," said Ren Bingyan, a professor at the School of Material Sciences at Hebei Industrial University.
The situation in Li's village points to the environmental trade-offs the world is making as it races to head off a dwindling supply of fossil fuels.
Forests are being cleared to grow biofuels like palm oil, but scientists argue that the disappearance of such huge swaths of forests is contributing to climate change. Hydropower dams are being constructed to replace coal-fired power plants, but they are submerging whole ecosystems under water.
Likewise in China, the push to get into the solar energy market is having unexpected consequences.
With the prices of oil and coal soaring, policymakers around the world are looking at massive solar farms to heat water and generate electricity. For the past four years, however, the world has been suffering from a shortage of polysilicon -- the key component of sunlight-capturing wafers -- driving up prices of solar energy technology and creating a barrier to its adoption.
With the price of polysilicon soaring from $20 per kilogram to $300 per kilogram in the past five years, Chinese companies are eager to fill the gap.
In China, polysilicon plants are the new dot-coms. Flush with venture capital and with generous grants and low-interest loans from a central government touting its efforts to seek clean energy alternatives, more than 20 Chinese companies are starting polysilicon manufacturing plants. The combined capacity of these new factories is estimated at 80,000 to 100,000 tons -- more than double the 40,000 tons produced in the entire world today.
But Chinese companies' methods for dealing with waste haven't been perfected.
Because of the environmental hazard, polysilicon companies in the developed world recycle the compound, putting it back into the production process. But the high investment costs and time, not to mention the enormous energy consumption required for heating the substance to more than 1800 degrees Fahrenheit for the recycling, have discouraged many factories in China from doing the same. Like Luoyang Zhonggui, other solar plants in China have not installed technology to prevent pollutants from getting into the environment or have not brought those systems fully online, industry sources say.
"The recycling technology is of course being thought about, but currently it's still not mature," said Shi Jun, a former photovoltaic technology researcher at the Chinese Academy of Sciences.
Shi, chief executive of Pro-EnerTech, a start-up polysilicon research firm in Shanghai, said that there's such a severe shortage of polysilicon that the government is willing to overlook this issue for now.
"If this happened in the United States, you'd probably be arrested," he said.
An independent, nationally accredited laboratory analyzed a sample of dirt from the dump site near the Luoyang Zhonggui plant at the request of The Washington Post. The tests show high concentrations of chlorine and hydrochloric acid, which can result from the breakdown of silicon tetrachloride and do not exist naturally in soil. "Crops cannot grow on this, and it is not suitable for people to live nearby," said Li Xiaoping, deputy director of the Shanghai Academy of Environmental Sciences.
Wang Hailong, secretary of the board of directors for Luoyang Zhonggui, said it is "impossible" to think that the company would dump large amounts of waste into a residential area. "Some of the villagers did not tell the truth," he said.
However, Wang said the company does release a "minimal amount of waste" in compliance with all environmental regulations. "We release it in a certain place in a certain way. Before it is released, it has gone through strict treatment procedures."
Yi Xusheng, the head of monitoring for the Henan Province Environmental Protection Agency, said the factory had passed a review before it opened, but that "it's possible that there are some pollutants in the production process" that inspectors were not aware of. Yi said the agency would investigate.
In 2005, when residents of Li's village, Shiniu, heard that a new solar energy company would be building a factory nearby, they celebrated.
The impoverished farming community of roughly 2,300, near the eastern end of the Silk Road, had been left behind during China's recent boom. In a country where the average wage in some areas has climbed to $200 a month, many of the village's residents make just $200 a year. They had high hopes their new neighbor would jump-start the local economy and help transform the area into an industrial hub.
The Luoyang Zhonggui factory grew out of an effort by a national research institute to improve on a 50-year-old polysilicon refining technology pioneered by Germany's Siemens. Concerned about intellectual property issues, Siemens has held off on selling its technology to the Chinese. So the Chinese have tried to create their own.
Last year, the Luoyang Zhonggui factory was estimated to have produced less than 300 tons of polysilicon, but it aims to increase that tenfold this year -- making it China's largest operating plant. It is a key supplier to Suntech Power Holdings, a solar panel company whose founder Shi Zhengrong recently topped the list of the richest people in China.
Made from the Earth's most abundant substance -- sand -- polysilicon is tricky to manufacture. It requires huge amounts of energy, and even a small misstep in the production can introduce impurities and ruin an entire batch. The other main challenge is dealing with the waste. For each ton of polysilicon produced, the process generates at least four tons of silicon tetrachloride liquid waste.
When exposed to humid air, silicon tetrachloride transforms into acids and poisonous hydrogen chloride gas, which can make people who breathe the air dizzy and can make their chests contract.
While it typically takes companies two years to get a polysilicon factory up and running properly, many Chinese companies are trying to do it in half that time or less, said Richard Winegarner, president of Sage Concepts, a California-based consulting firm.
As a result, Ren of Hebei Industrial University said, some Chinese plants are stockpiling the hazardous substances in the hopes that they can figure out a way to dispose of it later: "I know these factories began to store silicon tetrachloride in drums two years ago."
Pro-EnerTech's Shi says other companies -- including Luoyang Zhonggui -- are just dumping wherever they can.
"Theoretically, companies should collect it all, process it to get rid of the poisonous stuff, then release it or recycle. Zhonggui currently doesn't have the technology. Now they are just releasing it directly into the air," said Shi, who recently visited the factory.
Shi estimates that Chinese companies are saving millions of dollars by not installing pollution recovery.
He said that if environmental protection technology is used, the cost to produce one ton is approximately $84,500. But Chinese companies are making it at $21,000 to $56,000a ton.
In sharp contrast to the gleaming white buildings in Zhonggui's new gated complex in Gaolong, the situation in the villages surrounding it is bleak.
About nine months ago, residents of Li's village, which begins about 50 yards from the plant, noticed that their crops were wilting under a dusting of white powder. Sometimes, there was a hazy cloud up to three feet high near the dumping site; one person tending crops there fainted, several villagers said. Small rocks began to accumulate in kettles used for boiling faucet water.
Each night, villagers said, the factory's chimneys released a loud whoosh of acrid air that stung their eyes and made it hard to breath. "It's poison air. Sometimes it gets so bad you can't sit outside. You have to close all the doors and windows," said Qiao Shi Peng, 28, a truck driver who said he worries about his 1-year-old son's health.
The villagers said most obvious evidence of the pollution is the dumping, up to 10 times a day, of the liquid waste into what was formerly a grassy field. Eventually, the whole area turned white, like snow.
The worst part, said Li, 53, who lives with his son and granddaughter in the village, is that "they go outside the gates of their own compound to dump waste."
"We didn't know how bad it was until the August harvest, until things started dying," he said.
Early this year, one of the villagers put some of the contaminated soil in a plastic bag and went to the local environmental bureau. They never got back to him.
Zhang Zhenguo, 45, a farmer and small businessman, said he has a theory as to why: "They didn't test it because the government supports the plant."
Researchers Wu Meng and Crissie Ding contributed to this report.
Washington Post, Sunday, March 9, 2008; A01
GAOLONG, China -- The first time Li Gengxuan saw the dump trucks from the nearby factory pull into his village, he couldn't believe what happened. Stopping between the cornfields and the primary school playground, the workers dumped buckets of bubbling white liquid onto the ground. Then they turned around and drove right back through the gates of their compound without a word.
This ritual has been going on almost every day for nine months, Li and other villagers said.
In China, a country buckling with the breakneck pace of its industrial growth, such stories of environmental pollution are not uncommon. But the Luoyang Zhonggui High-Technology Co., here in the central plains of Henan Province near the Yellow River, stands out for one reason: It's a green energy company, producing polysilicon destined for solar energy panels sold around the world. But the byproduct of polysilicon production -- silicon tetrachloride -- is a highly toxic substance that poses environmental hazards.
"The land where you dump or bury it will be infertile. No grass or trees will grow in the place. . . . It is like dynamite -- it is poisonous, it is polluting. Human beings can never touch it," said Ren Bingyan, a professor at the School of Material Sciences at Hebei Industrial University.
The situation in Li's village points to the environmental trade-offs the world is making as it races to head off a dwindling supply of fossil fuels.
Forests are being cleared to grow biofuels like palm oil, but scientists argue that the disappearance of such huge swaths of forests is contributing to climate change. Hydropower dams are being constructed to replace coal-fired power plants, but they are submerging whole ecosystems under water.
Likewise in China, the push to get into the solar energy market is having unexpected consequences.
With the prices of oil and coal soaring, policymakers around the world are looking at massive solar farms to heat water and generate electricity. For the past four years, however, the world has been suffering from a shortage of polysilicon -- the key component of sunlight-capturing wafers -- driving up prices of solar energy technology and creating a barrier to its adoption.
With the price of polysilicon soaring from $20 per kilogram to $300 per kilogram in the past five years, Chinese companies are eager to fill the gap.
In China, polysilicon plants are the new dot-coms. Flush with venture capital and with generous grants and low-interest loans from a central government touting its efforts to seek clean energy alternatives, more than 20 Chinese companies are starting polysilicon manufacturing plants. The combined capacity of these new factories is estimated at 80,000 to 100,000 tons -- more than double the 40,000 tons produced in the entire world today.
But Chinese companies' methods for dealing with waste haven't been perfected.
Because of the environmental hazard, polysilicon companies in the developed world recycle the compound, putting it back into the production process. But the high investment costs and time, not to mention the enormous energy consumption required for heating the substance to more than 1800 degrees Fahrenheit for the recycling, have discouraged many factories in China from doing the same. Like Luoyang Zhonggui, other solar plants in China have not installed technology to prevent pollutants from getting into the environment or have not brought those systems fully online, industry sources say.
"The recycling technology is of course being thought about, but currently it's still not mature," said Shi Jun, a former photovoltaic technology researcher at the Chinese Academy of Sciences.
Shi, chief executive of Pro-EnerTech, a start-up polysilicon research firm in Shanghai, said that there's such a severe shortage of polysilicon that the government is willing to overlook this issue for now.
"If this happened in the United States, you'd probably be arrested," he said.
An independent, nationally accredited laboratory analyzed a sample of dirt from the dump site near the Luoyang Zhonggui plant at the request of The Washington Post. The tests show high concentrations of chlorine and hydrochloric acid, which can result from the breakdown of silicon tetrachloride and do not exist naturally in soil. "Crops cannot grow on this, and it is not suitable for people to live nearby," said Li Xiaoping, deputy director of the Shanghai Academy of Environmental Sciences.
Wang Hailong, secretary of the board of directors for Luoyang Zhonggui, said it is "impossible" to think that the company would dump large amounts of waste into a residential area. "Some of the villagers did not tell the truth," he said.
However, Wang said the company does release a "minimal amount of waste" in compliance with all environmental regulations. "We release it in a certain place in a certain way. Before it is released, it has gone through strict treatment procedures."
Yi Xusheng, the head of monitoring for the Henan Province Environmental Protection Agency, said the factory had passed a review before it opened, but that "it's possible that there are some pollutants in the production process" that inspectors were not aware of. Yi said the agency would investigate.
In 2005, when residents of Li's village, Shiniu, heard that a new solar energy company would be building a factory nearby, they celebrated.
The impoverished farming community of roughly 2,300, near the eastern end of the Silk Road, had been left behind during China's recent boom. In a country where the average wage in some areas has climbed to $200 a month, many of the village's residents make just $200 a year. They had high hopes their new neighbor would jump-start the local economy and help transform the area into an industrial hub.
The Luoyang Zhonggui factory grew out of an effort by a national research institute to improve on a 50-year-old polysilicon refining technology pioneered by Germany's Siemens. Concerned about intellectual property issues, Siemens has held off on selling its technology to the Chinese. So the Chinese have tried to create their own.
Last year, the Luoyang Zhonggui factory was estimated to have produced less than 300 tons of polysilicon, but it aims to increase that tenfold this year -- making it China's largest operating plant. It is a key supplier to Suntech Power Holdings, a solar panel company whose founder Shi Zhengrong recently topped the list of the richest people in China.
Made from the Earth's most abundant substance -- sand -- polysilicon is tricky to manufacture. It requires huge amounts of energy, and even a small misstep in the production can introduce impurities and ruin an entire batch. The other main challenge is dealing with the waste. For each ton of polysilicon produced, the process generates at least four tons of silicon tetrachloride liquid waste.
When exposed to humid air, silicon tetrachloride transforms into acids and poisonous hydrogen chloride gas, which can make people who breathe the air dizzy and can make their chests contract.
While it typically takes companies two years to get a polysilicon factory up and running properly, many Chinese companies are trying to do it in half that time or less, said Richard Winegarner, president of Sage Concepts, a California-based consulting firm.
As a result, Ren of Hebei Industrial University said, some Chinese plants are stockpiling the hazardous substances in the hopes that they can figure out a way to dispose of it later: "I know these factories began to store silicon tetrachloride in drums two years ago."
Pro-EnerTech's Shi says other companies -- including Luoyang Zhonggui -- are just dumping wherever they can.
"Theoretically, companies should collect it all, process it to get rid of the poisonous stuff, then release it or recycle. Zhonggui currently doesn't have the technology. Now they are just releasing it directly into the air," said Shi, who recently visited the factory.
Shi estimates that Chinese companies are saving millions of dollars by not installing pollution recovery.
He said that if environmental protection technology is used, the cost to produce one ton is approximately $84,500. But Chinese companies are making it at $21,000 to $56,000a ton.
In sharp contrast to the gleaming white buildings in Zhonggui's new gated complex in Gaolong, the situation in the villages surrounding it is bleak.
About nine months ago, residents of Li's village, which begins about 50 yards from the plant, noticed that their crops were wilting under a dusting of white powder. Sometimes, there was a hazy cloud up to three feet high near the dumping site; one person tending crops there fainted, several villagers said. Small rocks began to accumulate in kettles used for boiling faucet water.
Each night, villagers said, the factory's chimneys released a loud whoosh of acrid air that stung their eyes and made it hard to breath. "It's poison air. Sometimes it gets so bad you can't sit outside. You have to close all the doors and windows," said Qiao Shi Peng, 28, a truck driver who said he worries about his 1-year-old son's health.
The villagers said most obvious evidence of the pollution is the dumping, up to 10 times a day, of the liquid waste into what was formerly a grassy field. Eventually, the whole area turned white, like snow.
The worst part, said Li, 53, who lives with his son and granddaughter in the village, is that "they go outside the gates of their own compound to dump waste."
"We didn't know how bad it was until the August harvest, until things started dying," he said.
Early this year, one of the villagers put some of the contaminated soil in a plastic bag and went to the local environmental bureau. They never got back to him.
Zhang Zhenguo, 45, a farmer and small businessman, said he has a theory as to why: "They didn't test it because the government supports the plant."
Researchers Wu Meng and Crissie Ding contributed to this report.
Medvedev Urges Russia's Richest To Return "Moral Debts"
Medvedev Urges Russia's Richest To Return "Moral Debts"
Mar 15, 2009 11:13
MOSCOW (AFP)--President Dmitry Medvedev Sunday urged Russia's largest businesses to return "moral debts" during an economic crisis which he called " cleanup time."
"Nowhere in the world perhaps has the development of entrepreneurship in recent times happened as quickly as in our country.
"People simply have been getting very rich in a very short time," Medvedev said in an interview to be broadcast on national television later Sunday..
"Now it is time pay off debts, moral debts because the crisis is a test of maturity," he said.
Medvedev said the current crisis, Russia's worst economic collapse in a decade, was the time for the richest businessmen to embrace social responsibility and put interests of their employees before their own.
"If a person has really become a genuine businessman he can appreciate his employees," he said in comments released by the presidential administration.
"He will perhaps try to put off part of his proposals, part of his ideas or personal consumption, save his staff, pay them salaries, save what he's been doing in recent years."
Many of Russia's richest people earned fortunes through controversial loans- for-shares privatization in the 1990s and an economic bonanza fueled by high oil and gas prices gave birth to yet more tycoons.
Today Russia's richest are struggling to pay off billions of dollars in debts built up in better times, while the government has said businesses shouldn' assume there would be a blanket bailout of all.
"In this sense, this is probably cleanup time: he who survives the crisis conditions will be an effective entrepreneur, an effective manager in a good sense of the word," Medvedev said.
(END)
Mar 15, 2009 11:13
MOSCOW (AFP)--President Dmitry Medvedev Sunday urged Russia's largest businesses to return "moral debts" during an economic crisis which he called " cleanup time."
"Nowhere in the world perhaps has the development of entrepreneurship in recent times happened as quickly as in our country.
"People simply have been getting very rich in a very short time," Medvedev said in an interview to be broadcast on national television later Sunday..
"Now it is time pay off debts, moral debts because the crisis is a test of maturity," he said.
Medvedev said the current crisis, Russia's worst economic collapse in a decade, was the time for the richest businessmen to embrace social responsibility and put interests of their employees before their own.
"If a person has really become a genuine businessman he can appreciate his employees," he said in comments released by the presidential administration.
"He will perhaps try to put off part of his proposals, part of his ideas or personal consumption, save his staff, pay them salaries, save what he's been doing in recent years."
Many of Russia's richest people earned fortunes through controversial loans- for-shares privatization in the 1990s and an economic bonanza fueled by high oil and gas prices gave birth to yet more tycoons.
Today Russia's richest are struggling to pay off billions of dollars in debts built up in better times, while the government has said businesses shouldn' assume there would be a blanket bailout of all.
"In this sense, this is probably cleanup time: he who survives the crisis conditions will be an effective entrepreneur, an effective manager in a good sense of the word," Medvedev said.
(END)
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