Libertarianism and Neoliberalism – A difference that matters?

I recently saw a thoroughgoing Twitter conversation between a Caleb Brown, which most of you presumably know from the Cato Daily Podcast, and the Neoliberal Project, an American project founded to promote the ideas of neoliberalism, regarding the differences between libertarianism and neoliberalism. For those who follow the debate, it is nothing new that the core of this contention goes way beyond an etymological dimension – it is concerned with one of the most crucial topics in the liberal scholarship: the relationship between government and free markets.

Arbitrary categories?

I can understand the aim to further structure the liberal movement into subcategories which represent different types of liberalism. Furthermore, I often use these different subcategories myself to distance my political ideology from liberal schools I do not associate with, such as paleo-libertarianism or anarcho-capitalism. However, I do not see such a distinct line between neoliberalism and libertarianism in practice.

As describes by Caleb Brown (and agreed on by the Neoliberal Project), neoliberalism wants to aim the wealth generated by markets at specific social goals using some government mechanism, whilst libertarianism focuses on letting the wealth created by free markets flow where it pleases, so to say. In my opinion, the “difference” between these schools is rather a spectrum of trust in government measures with libertarianism on one side and neoliberalism on the other.

I’ve often reached a certain point in the same discussion with fellow liberals:

Neoliberal: I agree that free markets are the most efficient tool to create wealth. They are just not very good at distributing it. By implementing policy X, we could help to correct market failure Y.

Libertarian: Yeah, I agree with you. Markets do not distribute wealth efficiently. However, the government has also done a poor job trying to alleviate the effects of market failures, especially when we look at case Z… (Of course, libertarians bring forth other arguments than public choice, but it is a suitable example.)

After reaching this point, advocating for governmental measures to fix market failures often becomes a moral and personal objective. My favourite example is emission trading. I am deeply intrigued by the theoretical foundation of the Coase-Theorem and how market participants still can find a Pareto-efficient equilibrium by just negotiating. Based on this theoretical framework, I would love to see a global market for carbon emission trading.

However, various mistakes were made during the implementation of emission allowances. First, there were way too many emission allowances on the market which engendered the price to drop dangerously low. Additionally, important markets such as air and ship transportation were initially left out. All in all, a policy buttressed by a solid theory had a more than rough start due to bad implementation.

At this point, neoliberals and libertarians diverge in their responses. A libertarian sees another failure of the government to implement a well-intended policy, whereas a neoliberal sees a generally good policy which just needs a bit further improvement. In such cases, the line between neoliberals and libertarians becomes very thin. And from my point of view, we make further decisions based on our trust in the government and on our subjective-moral relation to the topic as well.

I saw government too often fail (e.g. engaging in industry politics), which should be left nearly entirely to free markets. However, I also saw the same government struggling to find an adequate response to climate change. Contrary, I believe that officials should carry on with their endeavours to counteract climate change whereas they should stay out of industry politics.

Furthermore, in the recent past, there has been a tremendous amount of libertarian policy proposals put forth which remodeled the role of government in a free society: A libertarian case for mandatory vaccination? Alright. A libertarian case for UBI? Not bad. A libertarian case for a border wall? I am not so sure about that one.

Although these examples may define libertarianism in their own context, the general message remains clear to me: libertarians are prone to support governmental measures if they rank the value of a specific end higher than the risk of a failed policy. Since such an article is not the right framework to gather a robust amount of data to prove my point empirically, I rely on the conjecture, that the core question of where the government must interfere is heavily driven by subjective moral judgements.

Summary

Neoliberals and Libertarians diverge on the issue of government involvement in the economy. That’s fine.

Governmental policies often do not fully reach their intended goals. That’s also fine.

The distinction between neoliberals and libertarians is merely a threshold of how much trust one puts in the government’s ability to cope with problems. Both schools should not value this distinction too much since it is an incredibly subjective issue.

The American objective of isolating Iran continues to be a failure

Recent days have been witness to important events; The Middle East Conference at Warsaw, co-hosted by Poland and the US State Department on February 13 & 14, and the Munich Conference. Differences between the EU and the US over dealing with challenges in the Middle East, as well as Iran, were reiterated during both these events.

The Middle East Conference in Warsaw lacked legitimacy, as a number of important individuals were not present. Some of the notable absentees were the EU Foreign Policy Chief, Federica Mogherini, and the Foreign Ministers of Germany, France, and Italy. Significantly, on February 14, Iranian President Hassan Rouhani, Russian President Vladimir Putin, and Turkish President Recep Tayyip Erdogan met in Sochi, Russia to discuss the latest developments in Syria and how the three countries could work together.

Personalised aspect of Trump’s Diplomacy

In addition to the dissonance between EU and US over handling Iran, the dependence of Trump upon his coterie, as well as personalised diplomacy, was clearly evident. Trump’s son-in-law and Senior Aide, Jared Kushner, spoke about the Middle East peace plan at the Warsaw Conference, and which Trump will make public after elections are held in Israel in April 2019. The fact that Netanyahu may form a coalition with religious right wingers could of course be a major challenge to Trump’s peace plan. But given his style of functioning, and his excessive dependence upon a few members within his team who lack intellectual depth and political acumen, this was but expected.

EU and US differences over Iran

As mentioned earlier, the main highlight of both events was the differences over Iran between the EU and Israel, the US and the GCC (Gulf Cooperation Council) countries. While Israel, the US, and the Arabs seemed to have identified Iran as the main threat, the European Union (EU), while acknowledging the threat emanating from Iran, made it amply clear that it disagreed with the US method of dealing with Iran and was against any sort of sanctions. US Secretary of State Mike Pompeo went to the degree of stating that the goal of stability in the Middle East could only be attained if Iran was ‘confronted’.

The EU differed not just with the argument of Iran being the main threat in the Middle East, but also with regard to the methods to be used to deal with Iran. The EU, unlike the US, is opposed to the US decision to get out of the Joint Comprehensive Plan of Action (JCPOA) and is all for engaging with Iran.

At the Warsaw Conference Vice President Mike Pence criticised European Union member countries for trying to circumvent sanctions which were imposed by the US. Pence was referring to the SPV (Special Purpose Vehicle) launched by Germany, France, and Britain to circumvent US sanctions against Iran. The US Vice President went to the extent of stating that the SPV would not just embolden Iran, but could also have a detrimental impact on US-EU relations.

US National Security Adviser John Bolton has, on earlier occasions, also spoken against the European approach towards the sanctions imposed upon Iran.

Differences at Munich Conference

The differences between the US and the EU over Iran were then visible at the Munich Conference as well. While Angela Merkel disagreed with Washington’s approach to the Nuclear Deal, she agreed on the threat emanating from Iran but was unequivocal about her commitment to the JCPOA. While commenting on the importance of the Nuclear Agreement, the German Chancellor said:

do we help our common cause… of containing the damaging or difficult development of Iran, by withdrawing from the one remaining agreement? Or do we help it more by keeping the small anchor we have in order maybe to exert pressure in other areas?

At the Munich Conference too, the US Vice President clearly flagged Iran as the biggest security threat to the Middle East. Pence accused Iran of ‘fueling conflict’ in Syria and Yemen, and of backing Hezbollah and Hamas.

GCC Countries at the Warsaw Conference

It is not just the US and Israel, but even representatives of the GCC which took a firm stand against Iran. (A video leaked by Israeli Prime Minister Benjamin Netanyahu revealed this.)

Bahraini Foreign Minister Khaled bin Ahmed Khalifa went to the extent of stating that it is not the Israeli-Palestinian Conflict but the threat from Iran which poses the gravest threat in the Middle East. Like some of the other delegates present at the Warsaw Conference, the Bahraini Foreign Minister accused Iran of providing logistical and financial support to militant groups in the region.

Similarly, another clip showed the Saudi Minister of State for Foreign Affairs (Adel al-Jubeir) saying that Iran was assisting and abetting terrorist organisations by providing ballistic missiles.

Iran was quick to dismiss the Middle East Conference in Warsaw, and questioned not just its legitimacy but also the outcome. Iranian President Hassan Rouhani stated that the conference produced an ‘empty result’.

US allies and their close ties with Iran

First, the US cannot overlook the business interests of its partners not just in Europe, but also in Asia such as Japan, Korea, and India. India for instance is not just dependent upon Iran for oil, but has invested in the Chabahar Port, which shall be its gateway to Afghanistan and Central Asia. New Delhi in fact has taken over operations of the Chabahar Port as of December 2018. On December 24, 2018, a meeting – Chabahar Trilateral Agreement meeting — was held and representatives from Afghanistan, Iran, and India jointly inaugurated the office of India Ports Global Chabahar Free Zone (IPGCFZ) at Chabahar.

The recent terror attacks in Iran as well as India have paved the way for New Delhi and Tehran to find common ground against terror emanating from Pakistan. On February 14, 2019, 40 of India’s paramilitary personnel were killed in Kashmir (India) in a suicide bombing (the dastardly attack is one of the worst in recent years). Dreaded terror group Jaish-E-Muhammad claimed responsibility. On February 13, 2019, 27 members of Iran’s elite Revolutionary Guards were killed in a suicide attack in the Sistan-Baluchistan province which shares a border with Pakistan. Iran has stated that this attack was carried out by a Pakistani national with the support of the Pakistani deep state.

Indian Foreign Minister Sushma Swaraj met with Iranian Deputy Foreign Minister Seyed Abbas Aragchchi en route to Bulgaria. In a tweet, the Iranian Deputy Foreign Minister stated that both sides had decided to strengthen cooperation to counter terrorism, and also said that ‘enough is enough’. This partnership is likely to grow, in fact many strategic commentators are pitching for an India-Afghanistan-Iran security trilateral to deal with terrorism.

Conclusion

So far, Trump’s Middle Eastern Policy has been focused on Iran, and his approach suits both Saudi Arabia and Israel but it is being firmly opposed by a number of US allies. It is important that the sane voices are heard, and no extreme steps are taken. As a result of the recent terror attack in Pulwama, geopolitical developments within South Asia are extremely important. Thus, the US and GCC countries will also need to keep a close watch on developments in South Asia, and how India-Pakistan ties pan out over the next few weeks. New Delhi may have its task cut out, but will have no option but to enhance links with Tehran. Trump needs to be more pragmatic towards Iran and should think of an approach which is acceptable to all, especially allies. New Delhi-Tehran security ties are likely to grow, and with China and Russia firmly backing Iran, the latter’s isolation is highly unlikely.

Middle-class: questioning the definitions

  Vestis virum (non) redit

                                                                                    ~ Latin proverb

As Brexit drags on, there is a reassessment occurring of Margret Thatcher and her legacy. After all, in addition to being a stalwart defender of free markets, free enterprise, and free societies, she helped design the EEC, the precursor to the EU. So in the process of leaving the EU, there is a lingering question regarding whether the referendum is a rejection of Thatcher’s legacy. Those who equate the referendum with a repudiation of Thatcher offer explanations along the lines of: “Thatcher destroyed the miners’ way of life [NB: this is a retort spat out in a debate on the freedom-vs.-welfare split in the Leave faction; it has been edited for grammar and clarity.].” Sooner or later, Thatcher-themed discussions wend their way to the discontents of capitalism, especially the laissez-faire variety, in society, and the complaints are then projected onto issues of immigration, sovereignty, or globalism. 

On the other side of the Atlantic, Tucker Carlson’s January 2 polemical monologue contained similar sentiments and provoked a response that proved that the same issues have divided America as well. Much of Carlson’s complaints were predicated on the concept of “way of life,” and here lies a dissonance which has meant that swaths of society talk without understanding: merely possessing a way of life is not equal to having values. In all the discussion of the “hollowing out of the middle-class,” one question is never raised: What is the middle-class?

It is only natural that no one wants to ask this question; modern society doesn’t want to discuss class in a real sense, preferring to rely on the trite and historically abnormal metric of income. To even bring up the C- word outside of the comfortable confines of money is to push an unspoken boundary. Although there is an exception: if one is speaking of high-income, or high-net-worth individuals, it is completely acceptable to question an auto-definition of “middle-class.” Everyone can agree that a millionaire describing himself as middle-class is risible. 

It is the income dependent definition that is the source of confusion. The reality is that modernity has conflated having middle income with being middle-class. The two are not one and the same, and the rhetoric surrounding claims of “hollowing out” is truly more linked to the discovery that one does not equal the other. 

In his The Suicide of the West, Jonah Goldberg wrote on the subject of the back history of the Founding Fathers:

[….] British primogeniture laws required that the firstborn son of an aristocratic family get everything: the titles, the lands, etc. But what about the other kids? They were required to make their way in the world. To be sure, they had advantages – educational, financial, and social – over the children of the lower classes, but they still needed to pursue a career. “The grander families of Virginia – including the Washingtons – were known as the ‘Second Sons,’” writes Daniel Hannan [Inventing Freedom: How the English-Speaking Peoples Made the Modern World (HarperCollins, 2013)]. [….]

In fact, Hannan and Matt Ridley [The Rational Optimist: How Prosperity Evolves (Harper, 2010] suggest that much of the prosperity and expansion of the British Empire in the eighteenth century can be ascribed to an intriguing historical accident. At the dawn of the Industrial Revolution, the children of the affluent nobility had a much lower mortality rate, for all the obvious reasons. They had more access to medicine, rudimentary as it was, but also better nutrition and vastly superior living and working conditions than the general population. As a result, the nobility were dramatically more fecund than the lower classes. Consequently, a large cohort of educated and ambitious young men who were not firstborn were set free to make their way in the world. If you have five boys, only one gets to be the duke. The rest must become officers, priests, doctors, lawyers, academics, and business men.

Goldberg concisely summarized the phenomenon which Deirdre McCloskey argues created the original middle-class. But more importantly, Goldberg’s history lesson emphasizes that the origins of America, from an idea to a reality, have a deep socio-cultural angle, one that is tied to status, property rights, and familial inheritance, that is often lost in the mythology.

As Goldberg explained, the complex, painful history of disenfranchisement due to birth order was the real reason the Founding Fathers both opposed the law of entail while simultaneously focusing almost myopically on private property rights in relation to land. As Hernando de Soto studied in his The Mystery of Capital, George Washington, who held land grant patents for vast, un-surveyed tracts in Ohio and Kentucky, was horrified to discover that early settlers had established homesteads in these regions, before lawful patent holders could stake their claims. Washington found this a violation of both the rule of law and the property rights of the patent holders and was open to using military force to evict the “squatters,” even though to do so would have been against English common law which gave the property to the person who cleared the land (Washington was no longer president at that point, so there was no risk that the aggressive attitude he expressed in his letters would lead to real action.).   

Before repudiating Washington for his decidedly anti-liberty attitude on this score, we should turn to Deirdre McCloskey and her trilogy – The Bourgeois Virtues: Ethics for an Age of CommerceBourgeois Dignity: Why Economics Can’t Explain the Modern World, and Bourgeois Equality: How Ideas, Not Capital or Institutions Enriched the World – for an understanding on why this might be important, and why conflating way of life with social standing and identity is both fallacious and dangerous. 

Part II coming soon!

Shares of Income – Common Left Delusions

Two big conceptual mistakes are hidden in one small graph that help the leftist delusion.

1. I do not contest the data. I have not checked them. They may be correct. I don’t know; I have another purpose.

2. People who use this graph (though not the makers of the graph, maybe) implicitly assume that those who were in the top income 1% in 1980 are the same as those who are in the top 1% in 2016, or their parents.  The graph says nothing about this. One thing is clear: Steve Job or his parents would not have been in the top 1% in 1980; Steve Jobs would have been, for sure, in 2010, his estate in 2016. The graph does not show the perpetuation of privilege and of inequality, as users almost always imply. Suppose that 100% of those who were in the 1% in 2016 were not (or their parents, or their grandparents) in 1980. This would show a fast change of economic elites. It might pose a problem but not the problem the envious imply when they display the graph.

noldelacroixsharesofincome

The problem here is intellectual passivity.

3. The percentage of income that accrues to a given fraction of the population – including the top 1%  – tells you nothing about how well anyone has fared economically, whether anybody is richer or poorer than he was at the beginning. Here is an example: Suppose, you and I both earn $1,000 at the beginning of the period of observation. Thus, we each get 50% of our joint income (1000/2000). Suppose further that during the period observation, my income doubles while yours quadruples, I am now getting only 33% while you are getting 66% (2000/2000+4000 vs 4000/2000+4000). My share in percentage terms has declined while yours has ballooned. Question: Am I now poorer than I was at the beginning of the period? That’s a “Yes/No” question.; don’t equivocate. The problem is here is failure to understand elementary school math.

The chart is produced by the World Inequality Organization, a single purpose outfit not dedicated to the possibility that inequality may be decreasing. The data it offers have not been certified by the usual scholarly processes  This organization’s executive committee includes Thomas Piketty who could not get his data straight in his best-selling book. He had to refer critics to a website to get his story down. The earlier edition of the same book became famous for not including in US calculations: food stamps, rent support, free medical care, and more, in US welfare recipients’ incomes. I don’t know the others, which may or may not matter. Too many Europeans for my taste. I don’t like it, from 40 years of observation. That last remark is somewhat subjective, of course.

Together these simple comments add up to this critical judgment of the relevant chart: Either, those who use it normally don’t know what they are talking about or, they are not saying anything that matters.

Bad Religion

The Heidelberg Catechism is one of my all-time favorite Christian documents. Written in 1563, mostly by Zacharias Ursinus, the Heidelberg (as it is sometimes called) is composed by 129 questions and answers (the classical format of a catechism), supposed to be studied in 52 Sundays (that is, one year). I believe it is very telling that, being a catechism, the Heidelberg was written thinking mostly about younger people, even children. Ursinus himself was only about 29 years old when he wrote it. Maybe it is a sign of the times we live in that the Heidelberg sounds extremely deep for most readers today.

Throughout its questions and answers, the Heidelberg covers mostly three Christian documents: The Ten Commandments, the Lord’s Prayer (“Our Father who art in Heaven…”) and the Apostle’s Creed. The catechism is also divided into three main parts: Our sin and misery (questions 3-11), our redemption and freedom (questions 12-85), our gratitude and obedience (86-129). Probably an easier way to remember this is to say that the Heidelberg is divided into Guilt, Grace, and Gratitude. That is also, according to many interpreters, the basic division of the Apostle Paul’s Letter to the Romans, historically one of the most important books in the Bible.

I mention all these characteristics about the Heidelberg Catechism because I think they are worth commenting on. As I learned from a friend, that is the Gospel: Guilt, Grace, and Gratitude. As C.S. Lewis observed in Mere Christianity, Christians are divided on how exactly this works, but all agree that our relationship with God is strained. That is the guilt. However, in Jesus Christ, we can restart a peaceful relationship with God. That is the grace. This should be followed by a life of gratitude. That is the way the Gospel is good news. If you don’t emphasize these three points you are not really presenting the Biblical gospel. To talk about grace without talking about guilt is nonsense. To talk about guilt and not grace is not good news at all. To talk about guilt and grace but not of gratitude is antinomianism. To talk about gratitude (or obedience) without talking about guilt and especially grace is legalism. But also, notice how unbalanced the three main parts are: Ursinus dedicated way more space for grace and gratitude that he did for guilt.

That’s not accidental. Also, it is very interesting that he talks about the Ten Commandments when he is dealing with gratitude. It didn’t have to be this way. Ursinus could have included the Law when talking about guilt. He could use the law to show how miserable we are for not fulfilling it. But instead, he wanted to show that obeying God is a sign of gratitude. You are free already. Obeying will not make you any more saved. But it is certainly the behavior of a truly restored person.

If you read so far, I should first thank you for your attention, but also say that I am completely unapologetic for speaking so openly on Christian themes. At some point in history, Christians decided to adapt to the modern culture. That was the birth of Christian Liberalism. Modern man, some of them assumed, could no longer believe in stories of gods and miracles. Modern science was able to explain things that societies in the past thought to be supernatural occurrences. The Bible was at worst pure nonsense or at beast a praiseful reflection of the piety of people in the past, but certainly not a supernatural revelation from God. But if you take away the supernatural elements of the Bible, what do you have left? Good morals, some thought. I believe they were wrong.

The social gospel is one consequence of Christian liberalism. The central miracle in the Bible is that Jesus, a mortal man, was dead for three days and resurrected. That is indeed a miracle. Make no mistake: people in the first century knew as well as we do that people don’t come back to life after three days. Maybe they knew it better than we do, for in the 21st century, for many of us, death is not a part of everyday life. For them, it certainly was. Christians have believed through almost two thousand years that Jesus’ death and resurrection have something to do with us being reconciled to God. But if Jesus didn’t resurrect, and no one really heard from God that he is angry, what do we have left? The answer, according to Christian liberals, is social justice. Reform society. I believe that for this, they own society at large an apology, and I will explain why.

I heard from too many people that the reason they don’t go to church is that Christians are hypocrites. “Do as I say, but not as I do”. Maybe they are right. The balance between guilt, grace, and gratitude if fundamental for Christianism to work. Salvation (reestablishing a rightful relationship with God) is by grace, not by works. Say that salvation is by works and you set the board in a way that you are sure to lose. As I already mentioned, I think it is just wonderful that the Heidelberg Catechism talks about the Law of God (The Ten Commandments) when it is discussing gratitude, not guilt, and I believe this is a great lesson for us today.

I say all this today because I believe that political correctness is (at least to a great degree) the bastard son (or daughter) of the social gospel. See the recent Gillette commercial that caused so much controversy, for example. Are they really saying anything wrong? Don’t men behave sometimes in ways that are less than commendable? I believe we do. Especially coming from a Latino culture as I do, I am more than willing to say that men all too often are disrespectful towards women and also towards other men. However, how the people at Gillette know this? If there is no God, or if he didn’t speak, how can you tell what is ethically commendable behavior and what is not?

I am no specialist, but as far as I know, more than enough atheist philosophers are willing to admit that in a sole materialist worldview there are no universal grounds for morality. As the poet said, “if there is no God, then all things are permissible”. It is always important in a conversation like this to explain that I am not saying that atheists cannot be ethical people. That is absolutely not what I am saying. Some of the best people I ever met were atheists. Some of the worst were Christians who were at church every single Sunday. With that explained, what I am saying is that there is no universal guide for human behavior if there is no God and everything just happened by chance. There are particular guides, but not a universal one, and to adhere to them is really a matter of choice.

The way that I see it, people at Gillette want men to feel bad and to change their behavior. They want men to feel guilty and to have gratitude. But where is the grace? I believe that is why this commercial irritated so many people. It makes people at Gillette look self-righteous or legalistic. Or both! But it definitely doesn’t help men to change their ways, supposing that there is something to change. I believe there is. There is a lot to change! But political correctness is not the way to do it.

Blame it on Rio

I grew up in Rio de Janeiro in a very middle-class neighborhood. Not the fanciest one, but also not the poorest. Very much in the middle. This neighborhood also had the characteristic of being surrounded by hills. Many if not most hills in Rio de Janeiro have favelas. Favelas are poor neighborhoods that are formed by poor people who mostly want to live close to where the jobs are. Because I grew up in a middle-class neighborhood, studied in middle-class schools and had a middle-class family I was in danger of only knowing middle-class people. The thing that prevented me from that the most was going to church. In church, I lived with people from all kind of social backgrounds – including people who lived in favelas.

The history of Rio de Janeiro is mostly a history of expansion from the area we today call downtown. On several occasions, poor people (including my grandfather and his mother) were relocated (or frankly expelled) from their houses by the government that wanted to make some urban reform. People faced two options: to be relocated to far removed areas, far away from their jobs, or to occupy some undeveloped area in the vicinities of where they previously lived and form a favela.

Because Rio de Janeiro is the historic capital of Brazil, it received a lot of investment by governments over the decades. Many governments wanted to make it a vitrine of Brazil’s development. Also, Brazil has a strong history of developmentalism. Especially since Getúlio Vargas, who rule the country from 1930 to 1945 and again from 1951 to 1954, Brazilian presidents tend to believe that it is their job to bring economic development to the country. The higher the GDP growth, the best. I mean, who am I to say that GDP growth is a bad thing?! But we have a lot of stories worldwide of countries that grew too fast in too little time leading among other things to major population dislocations and new pockets of poverty around great cities. Lagos, in Nigeria, is a textbook example. So is Caracas, in Venezuela. So is Rio de Janeiro. This kind of development is pretty much like using steroids: the results are fast, but the side effects are terrible. Fernando Henrique Cardoso tried to “flip the page” from Vargas in the 1990s, but Lula da Silva and Dilma Rousseff returned to developmentalist policies in the 2000s. Even Jair Bolsonaro often talks as a developmentalist, apparently a tic from his military years. Anyways, developmentalism led to the fast growth of Rio de Janeiro over the decades – and the formation of new favelas.

One of the best stories of developmentalism in Rio de Janeiro is the neighborhood of Barra da Tijuca. Until the 1960s this part of the city, caught between the hills and the ocean, was basically desert. That’s when the government commissioned the architect and urbanist Lucio Costa to develop the area. Mr. Costa was also responsible for designing the city of Brasília, and it shows: Brasília and Barra da Tijuca are fairly similar. Not my kind of city or neighborhood. It’s very hard or even impossible to explore Barra da Tijuca on foot. Its area is roughly the size of Manhattan, but it has no subway lines. The bus lines are not very dependable. The city blocks are very large. Everything is very distant.

In my evaluation, Mr. Costa thought that he was God. Brasília and Barra and very interesting if looked from above, from the sky. But if you are on the ground level and don’t have a car, they are just not friendly. But that’s how modernists (including socialists) are: they swear they love humanity but hate human beings.

The news that the government was developing the Barra da Tijuca area spread fast. Many families came to the region looking for jobs in construction. Many of them settled in the vicinity of Rio das Pedras. Rio das Pedras became one of the main favelas of the region. In the absence of government, people started to organize themselves in neighborhood associations. Even with most of the construction projects done, the families never left. Barra da Tijuca became an affluent neighborhood with many jobs. Alongside came drug trafficking.

The “pre-history” of drug trafficking in Rio de Janeiro is almost idyllic. You just have to watch the movie City of God (2002). Of course, one could not sell drugs in fancy neighborhoods like Ipanema or Copacabana, where the government is strongly present.

So, most drug trafficking happened in the favelas, including Rio das Pedras. The first generation of drug dealers was mostly respectful towards residents of the favelas and other poor neighborhoods. Some even became legendary for pacifying the neighborhoods from other forms of crime: because they didn’t want to have trouble with the police, drug dealers would punish criminals themselves. However, this changed very fast. The dispute for territory led drug dealers to become more and more violent.

In response to drug dealers and the slackness of the government, people organized in militias. What once were neighborhood associations became paramilitary organizations. Just like happened with the drug dealers, the vigilantes were initially friendly towards the people living in the neighborhoods. However, this changed very fast. The dispute for territory led militias to become more and more violent. Eventually, drug dealers and militias became mostly indistinguishable. Some militia leaders entered politics.

Marcelo Freixo, a Rio de Janeiro politician of the PSOL (Socialism and Liberty Party – as I said before, a contradiction in terms) rose to fame in the 2000s for presiding over a parliamentary inquiry on the militias. Mr. Freixo had a character inspired on him in the movie Elite Squad 2 (2010). The first Elite Squad (2007) was a very good movie. The sequel, not so much. Elite Squad is somewhat based on real events and tells the story of (what else?) BOPE, an elite squad in the Rio de Janeiro military police (somewhat analogous to the SWAT), especially during the visit of Pope John Paul II to the city in the late 1990s. The movie has some similarities to Black Hawk Down (2001). If you haven’t watched it and want to be spoil free, you might want to skip to the next paragraph.

Pope John Paul II decided to stay in a dangerous neighborhood, surrounded by favelas. The BOPE was responsible for his security. Although disagreeing with the strategic intelligence of allowing the Pope to stay in a dangerous region of the city, the squad did its job. In very military fashion, “orders are orders”. The movie shows the police officers as very dubious figures: they are extremely violent and often disrespectful towards citizens. But they are also very honest and dutybound. Captain Nascimento, the main character, is a tragic figure. He became a police officer to protect innocent citizens. He discovers that by obeying orders he is often just putting his life in risk for very little or no results. Worse, he is misunderstood by all those around him, including his family.

Even his son ends up calling him a fascist. Elite Squad also portrays the drug dealers in a nuanced way. They are violent and vengeful, but Captain Nascimento himself understands that no one grows up dreaming about becoming a drug dealer. Drug dealers and BOPE members fight a private war and ironically might be the only ones to truly understand one another. The real villains of the movie are the upper-middle class youngsters who use drugs, financing the drug dealers who the BOPE fights. It is against them that the police officers direct most of their rage.

So, I believe that Elite Squad is a very good movie, that pictures quite well how life in Rio de Janeiro is for many people. Most of the time it is hard to precisely identify villains or heroes. However, no wonder, despite being very popular, the movie was trashed by leftist intellectuals who called it fascist. The sequel gains in quality in almost everything but the characters, and this makes it worse than the original. The villains are completely villainous and the heroes, heroic. It lacks the nuances of the original. The character inspired by Marcelo Freixo is morally perfect. The vigilantes whom he fights are cartoonish evil.

Brazilian and international media gave much attention last year to the assassination of Marielle Franco, a Rio de Janeiro politician who, just like Mr. Freixo, was a member of the PSOL. Ms. Franco’s assassination, like any other, is a tragedy. The police investigation is still ongoing, and no one really knows who killed her, but it seems very likely that she was murdered by members of a militia. Despite what international media might lead one to believe, Ms. Franco was far from being the first Rio de Janeiro politician to be murdered in the last few years. Mr. Freixo himself is under police protection for many years now. Other politicians from several political parties were not so lucky and didn’t receive the same attention from the media. The left’s last blow against president Jair Bolsonaro is to say that one of his sons, Flávio Bolsonaro, is somehow connected to Ms. Franco assassination. In their narrative, Flávio would be connected to militias who in turn killed Ms. Franco. All things are possible. Not all are plausible. Definitely, not all are proven. To be honest, there are people in the right saying that Jean Wyllys, also from the PSOL, is connected to Jair Bolsonaro’s assassination attempt last September. Maybe they should all go have a drink together. They have much in common.

Making a generalization (but I hope not an overgeneralization), politicians and intellectuals from the left tend to romanticize drug dealers. They are pictured as social victims or social bandits, almost Robin Hoods. On the other hand, they vilify the militias in a cartoonish way. Just like Elite Squad 2. I began this text mentioning that going to church prevented me from entirely growing in a middle-class bubble. Because of that, I heard people saying that old drug dealers had at least some sense of justice. Younger ones (sometimes as young as 16 years old) are almost animals, psychopaths without any sense of empathy. If you watched The Godfather trilogy you know what I mean. I also heard people frustrated with the government, that offered no protection against criminals. The same people were (at least initially) supportive of militias.

Politicians in the right, in turn, consider unimaginable to legalize any drug. But on the other hand, they were very slow to understand the danger of the militias, and citizens making justice with their own hands in general.

So, this is a story about Rio de Janeiro, one of Brazil’s most important cities. For decades politicians believed it was their job to bring economic development to the country – and to the city. This led to fast economic growth, which in turn led to the development of favelas. Favelas are areas where the official government is generally not present.

Therefore, its residents form neighborhood associations. Favelas are also places where, because of the lack of government, drug dealers can work in relative peace. However, over time drug dealers become more and more violent in their dispute for territory. The neighborhood associations, in turn, become militias. And the militias quite often become mafias. Some politicians rise to fame fighting these mafias, but the policies they defend are the same that begin this story in the first place. Politicians on the right are accused of dangerous liaisons. And no one seems to be willing to limit government to its primary function of protecting life and private property.

Government shutdown – private vs. public responses

The recent shutdown of the government in America has caused a midsize crisis for state employees leaving them unpaid for 35 days straight. Although the shutdown ended on the 25th of January, one can still draw a conclusion about the crisis handling from a public and a private perspective.

A failure of government

When you take a closer look at the history of governmental crisis management, you mostly look at a huge collection of mismanagement. In the last few years there has been a tremendous amount of intriguing works dealing with the failures of public crisis responses, especially the case of hurricane Katrina (Wikipedia here lists more than 100 references), which has been one the of most investigated disasters in recent history.

Crisis can provoke the good as well as the bad inside humans. One might think of the countless volunteers after nature catastrophes doing their very best to help. On the other hand, there have also been stories of grieving and plundering mobs on the streets, after hurricane Katrina for example. So, what we can say for sure is that crises push human behaviour to the extremes. Keeping this in mind it sounds reasonable to leave it to the government to set up an agenda of rules to coordinate humanitarian efforts. However, the government fails most of the time to deliver effective responses to crises, whether they are man-made or exogenous.

Not being able to find an agreement over the federal budget indicates that the government also has very limited options to offer to their employees. And indeed, Lara Trump gave some very handy advice to unpaid workers: “Listen, it’s not fair to you, and we all get that, but this is so much bigger than any one person. It is a little bit of pain but it’s going to be for the future of our country. […] Their children and their grandchildren will thank them for their sacrifice right now.” Yes, please explain to your children how you nearly starved to death because of a dispute over a wall. Sounds reasonable.

Whereas Donald Trump’s kind of clumsy attempt to clarify Ross Wilbur’s statement that government workers should take out loans (Maybe a small loan of a million dollars, huh?) was not too stupid at all. He emphasizes that worker should “work along” with local grocery shop owners they know. He was very clear that employees could not expect help from the government, but instead, they should look out for support on a local level. I do not think that this is a good method of communicating this issue, but it is for sure a very honest one.

Mac & Cheese

A 35-day shutdown, so to speak nearly a missed monthly wage, might not sound unbearable for a central European. But keeping in mind the saving habits of many Americans, a huge amount of government workers are facing existential problems. A recent FED survey found out that about 40% of the American population is not able to cover a 400$ emergency expense without selling or borrowing something.

Witnessing the inability of the government to provide payments for their workers, private enterprises reacted in a remarkable way. The huge food company Kraft rented space for pop-up stores in Washington in which they gave away food entirely for free. One of the most demanded products was Mac & Cheese. The celebrity Chef José Andrés provided free groceries for affected government worker through his NGO “World Central Kitchen.” When the government stopped caring, people started to do so.

Learnings

The overwhelming care for the unpaid government workers by the private sector further strengthened the role and importance of individual responsibility. In situations of crises, people tend to be less submissive to authority and focus on voluntary cooperation of human beings. I feel like it is important to mention here that I do not want to praise crises as a suitable method of bringing people together. But when we take a closer look at the history of humanity it becomes evident that instead of governmental decisions, voluntary human cooperation made our modern life possible. And in times of crises, people become clear about the relevance of these values and processes, which normally guide human progress subconsciously and unnoticed. Private responses to crises are a sign to me that humans are capable to display kindness, cooperation, and humanity beyond the borders of government.