Jacques the Moron

The verbal assaults against Pres. Trump, both oral and printed, have become almost mechanical. The concerted attempt to make his presidency seem illegitimate has largely become successful for much of the America population thanks to this systematic demeaning of the man. The above-board conspiracy has mostly won. I am not referring to criticism of Mr Trump’s policies based on facts and analysis. That’s fine and necessary, of course. (I have done some of this myself, right on my FB and on this blog.) I refer to personal attacks. Individuals with zero achievements, many demonstrable morons themselves, routinely call the president a moron. (I am not making this up; I could name names; perhaps I will, right here.)

When opponents are not content with opposing President Trump but insult him too, they also insult me. I voted for Mr Trump for the same reasons million others did. First, his name was not Clinton; second, I thought it was important to seize the chance to appoint a conservative Supreme Court Justice (or two). Since he has taken office, Mr Trump has surprised me pleasantly. There is no doubt in my mind that the current general American prosperity has a great deal to do with his policies, beginning with the general tax cut. Incidentally, I am well aware of the fact that the drop in unemployment began with the Obama administration. Another administration might have stopped it, or slowed it down. So, I have had two years to recant my vote. I have not. If you call the man I voted for a moron; you are calling me a moron.

I am not inclined to be indulgent with respect to the insult because I believe I know where it comes from thanks the many hours I spent at the faculty club. It’s a social class reaction; it’s the offended retort of those who think they are superior because they have read three books. It’s the cry of anguish of the semi-washed against the great unwashed (the “deplorables” in Mrs Clinton precise and unforgettable formula). Those who insult Pres. Trump, and therefore, me, are elitists with little reason to consider themselves an elite of any kind. Obviously, those who merely oppose his policies don’t need to call him names; they just have to describe that which they object to.

The daily name calling is wearying. It will leave a mark on my soul. I am far from sure that I will find it in me to forgive, or if I will ever forget. I think a ditch has been dug that will not be filled.

RE: Economists’ Statement on Carbon Dividends

I just got an email asking me to sign on to an open letter arguing for some carbon tax policies. I’m seeing some push back from (smart, economically literate) Facebook friends, but I think it’s a viable step in the right direction.

Here’s the statement paraphrased:

We think global warming is an important and urgent issue and we recommend these five things:

1. A carbon tax is the best, most cost-efficient way to do as much about carbon as needs to be done. [For a given level of carbon reduction, I agree. How much carbon reduction should happen (and how much at government behest) I am deeply agnostic about.]

2. We think this should be phased in over time and should be revenue neutral. [Yes on both points, but the rest of the statement makes it seem like they’re talking about a pretty short time horizon. I’m not sure how fast is too fast, but I’m sure there’s such thing.]

3. A carbon tax is more efficient than a set of specific regulations. [Certainly!] It’s also less likely to be subject to changing political winds. [Is it though?]

4. We should also apply a carbon tax to imported goods. This would reward energy-efficient American firms and prod other countries to follow suit. [Hmmmm… I can’t really disagree with the general principle, but this sounds like it will require bureaucratic oversight that will be subject to regulatory capture. On the other hand, we’ve already got that.]

5. We should give the revenue collected back to U.S. citizens, to offset increases in energy prices. [Okay, but if it’s going to be revenue neutral and come with a transfer scheme, that’s going to take some detangling!]

I buy into the notion that carbon emissions create large scale externalities that will probably be more bad than good on balance. Not universally bad, mind you. And not something that humanity won’t ultimately adapt to. But I think the people who will face the brunt of the bad outcomes will be the world’s poor (who we should help migrate to better climates!).

I don’t think we can just impose “the right” carbon tax and have everything come out just right. Even though I routinely draw out the case with a supply and demand graph in class, the truth is that nobody has access to those curves in real life. But a small tax can serve to reduce the inefficiency of pollution even if we don’t get it exactly right.

The revenue neutral part is important–we’re currently taxing lots of things we actually want more of (like investment). So if we can cut those taxes by taxing things we want less of (pollution), we’re reducing two sources of inefficiency in the current setup. Of course you and I have bolder views about what policy should look like in 100 years, but restricted to a 10 year window, a revenue neutral carbon tax looks pretty good to me.

The letter dramatically over-simplifies things. Climate change is probably a problem, but probably not as big a problem as proffered by proponents of proposals to prepare for apocalypse. It’s not clear to me that we have a good idea of a) all of the effects (good and bad), b) how people will adapt, and c) how people will adapt to a changing policy regimen.

Figuring out how to handle the tax on imports will be difficult and rife with rent seeking. Unmentioned is the impact on exports. If all our trading partners follow a similar policy, there’s no problem, but in the mean time there’s a tension that will probably be resolved with some unfortunate bit of rent seeking.

I’m sure most reasonable people would agree that instantaneous change would probably be unduly costly, but it’s not clear what the right speed of implementation is.

There are some miscellaneous rhetorical points I have issue with, but I suspect those are in there to throw a bone to people who aren’t me.

I hope that 10 years from now this open letter looks a bit silly. But I also hope that 10 years from now pollution taxes start to replace more inefficient taxes. On balance, I’m happy to see the letter prodding us in that direction.

Southeast Asia, China, and Trumpian foreign policy in 2019

A survey titled, ‘State of Southeast Asia: 2019’ conducted by the ASEAN Studies Centre (between November 18 and December 5, 2018 and released on January 7, 2019) at the think-tank Iseas-Yusof Ishak Institute came up with some interesting findings. The sample size of the survey was over 1,000 and consisted of policy makers, academics, business persons, and members of civil society from the region.

It would be fair to say that some of the findings of the survey were along expected lines. Some of the key points highlighted are as follows:

According to the survey, China’s economic clout and influence in South East Asia is steadily rising, and it is miles ahead of other competitors. Even in the strategic domain, Washington’s influence pales in comparison to that of Beijing’s. As far as economic influence in South East Asia is concerned, a staggering 73 percent of respondents subscribed to the view that China does not have much competition. A strong reiteration of this point is the level of bilateral trade between China and ASEAN (Association of Southeast Asian Nations), which comfortable surpassed $500 billion in 2017. After China, it is not the US, but ASEAN which has maximum economic clout in the region. If one were to look at the strategic and political sphere, 45% of respondents opined that China is the most influential player in South East Asia, followed by the US at 30 percent.

Second, China’s increasing influence does not imply that it is popular in South East Asia. In fact, a large percentage of the respondents expressed the opinion that China’s lack of integration with global institutions is not a very positive omen. South East Asian nations also have clear reservations with regard to the Belt and Road Initiative (BRI). 50% of respondents believed that the project would increase ASEAN countries dependence upon China, and there were serious apprehensions, with one third of respondents raising question marks with regard to the transparency of the project. A small percentage of respondents (16%) also felt that the BRI was bound to fail. Many ASEAN countries have been alluding to some of the shortcomings of the BRI, of course none was as vocal as Malaysian Premier Mahathir Mohammad. In the survey, respondents from Malaysia, Thailand, and the Philippines expressed the view that their countries should be cautious with regard to the BRI. Interestingly, even respondents from Cambodia, a country where China has made significant inroads, Japan is the most trusted country and not China.

Third, US isolationism, especially under Trump, has led to an increasing disillusionment with Washington DC in the region. The current administration has been aggressive on China, and it has sought to take forward former US President Barack Obama’s vision of ‘Pivot to Asia’ in the form of the Indo-Pacific Narrative. Senior voices within the Trump Administration, including current Secretary of State Mike Pompeo, have been trying to give a push to the Indo-Pacific Narrative and reaching out to South East Asian Countries. In July for instance, while addressing the Indo-Pacific Economic Forum at the US Chamber of Commerce in Washington, Pompeo said that the US was going to invest $113 million in new U.S. initiatives in areas like the digital economy, energy, and infrastructure. Pompeo also stated that these funds were a ‘down payment on a new era in U.S. economic commitment to peace and prosperity in the Indo-Pacific region’. Pompeo’s address was followed by a visit to South East Asia (Singapore and Indonesia), where he met with leaders from a number of ASEAN countries.

On December 31, 2018, the US also signed the ARIA (Asia Reassurance Initiative Act), which sought to outline increased US economic and security involvement in the Indo-Pacific region. ARIA has flagged US concerns with regard to China’s expansionist tendencies in South East Asia. Other key strategic issues, such as nuclear disarmament on the Korean Peninsula, have also been highlighted.

The Trump Administration has also earmarked $1.5 billion for a variety of programs in East and South East Asia.

Trump’s decision to pull the US out of the Trans Pacific Partnership (TPP) led to a lot of disappointment in the region, with allies like Singapore putting forward their views. Speaking at the ANZ Forum in November 2018, Former Prime Minister of Singapore, Goh Chok Thong stated:

…It is still a superpower but it has become less benign and generous. Its unilateral actions in many areas have hurt allies, friends and rivals alike […] America First is diminishing the global stature, moral leadership and influence of the US.

This view was also echoed by a number of experts who commented on the finding of the survey.

The Former Singapore PM also made the point that Asia needed to recalibrate its policies in order to adjust to the new world order.

ASEAN

What is clearly evident is that ASEAN needs to build a new vision which is in sync with the changing geopolitical situation. While Malaysian PM Mahathir Mohammad, by scrapping Chinese projects and referring to a new sort of colonialism emerging out of China’s BRI project, has taken an important step in this direction, it remains to be seen whether other countries in the region can also play their role in helping ASEAN weave its own narrative. For a long time now, countries have been dependent upon both the US and China, and have thought in terms of choices, but there has never really been a concerted effort to create an independent narrative.

What ASEAN actually needs is a narrative where it does not shy away from taking an independent stance, and where it is also willing to take a stand on issues of global relevance. One such issue is the Rohingya Issue. Apart from Malaysia and Indonesia, none of the other members of ASEAN has taken a clear stand. In the past, many ASEAN countries thought that they could refrain from commenting on contentious issues. Respondents to the survey felt that ASEAN states should be more involved in the Rohingya Issue.

The United States and other countries which are wary of Chinese influence should come up with a feasible alternative. So far, while members of the Trump Administration have repeatedly raised the red flag with regard to China’s hegemonic tendencies, and predatory economics as has been discussed earlier, it has not made the required commitment. While the Trump Administration has not been able to pose a serious challenge to Beijing, it remains to be seen if the Asia Reassurance Initiative Act is effective.

It is also important for Washington, and other countries, not to look at Chinese involvement from a zero-sum approach. Perhaps it is time to adopt a more pragmatic and far sighted approach. If Japan and China can work together in the Belt and Road Initiative, as well as other important infrastructural initiatives in South East Asia, and India and China can work together in capacity-building projects in Afghanistan, the possibility of US and China finding common ground in South East Asia should not be totally ruled out. Amidst all the bilateral tensions, recent conversation between US President Donald Trump and Chinese President Xi Jinping, and statements emanating from both sides are encouraging.

Conclusion

An isolationist Washington DC and a hegemonic Beijing are certainly not good news, not just for ASEAN, but for other regions as well. The survey has outlined some of the key challenges for ASEAN, but it is time now to look for solutions. Hopefully, countries within the region will shape an effective narrative, and be less dependent upon the outside world. The survey is important in highlighting some broad trends but policy makers in Washington as well as South East Asia need to come up with some pragmatic solutions to ensure that Beijing does not have a free run.

The Yellow Vests: Update

In the ninth weekend of demonstrations, the politics of envy seem to dominate. (Soak the rich again!) The Government must give us more money. Lower some taxes but impose or re-impose others especially the former tax on wealth.

Far behind: Introduce a degree of popular initiative in the political process: allow groups of citizens to initiate legislation, to implement it, and to abrogate it.

I can’t tell if those who want more money are the same as those who demand popular initiative in legislation. It’s a problem with grass root movements. They make attribution difficult.

Pres. Macron’s response is all over the place. It sounds like the work of an old man although the pres. is only 41. I think I know why this is: Nearly all the past thirty presidents and prime ministers are graduates from the one same school. Maybe they just crib the class notes of their predecessors.

Notably, Mr Macron’s response – contained in an open letter – to the nation includes more “save the Planet” proposals as if he had forgotten that an environmentalist tax set the barrels of powder on fire to begin with. Little chance he will be heard by the Yellow Vests although his open letter may serve to rally the main part of the population around him as the lesser of several evils.

Notably, the president, on his own, mentioned the possibility of limiting immigration although that’s not high in any of the Yellow Vests demands. Curious.

The president’s proposed themes are supposed to be debated widely and on a national scale. They are expected to give rise to suggestions on how to govern France. The suggestions will be collected at the municipal level (a good idea; the French like their mayors) in complaint books called “cahiers de doléances.” The latter sounds to me like a very bad idea. The last time those words were used on a large scale, was around 1788-89. The ruling circles lost their heads soon afterwards. (I mean literally.)

Keep things in perspective: If you add all the demonstrators nationally in every town any Saturday, you arrive at a very small number although it’s made up of persistent people . They are persistent because they represent a large minority facing serious, possibly unsolvable problems. Many ordinary French people have grown weary of the disruptions the Yellow Vests have caused. There is also huge revulsion against the acts of violence that accompany Yellow Vests demonstrations (not necessarily their own acts).

Cool heads counsel the president to dissolve the National Assembly and to call for new elections. Supposedly, this would bring up elected representatives more in tune with the people’s mood. My own guess is that new elections would result in the isolation of the Yellow Vests and bring an end to their movements. Just guessing.

Did I forget anything?

Immigration: Not Opinions, Facts

Immigration is in our newspapers and on our screens every day. Yet, between the factual confusion of most Republicans and the insult-laden cheery irresponsibility of Democrats, little of substance is being said. Here are two central facts that are routinely ignored:

1 In practice, there is no legal path to immigration for 95% + of illegal immigrants. Asylum is a possibility for a tiny number among them. Poverty is not currently grounds for asylum. (See reference below.)

2 A forty year-old single immigrant from India with an engineering degree is unlikely to take more out of the public trough than he puts in. He is also very unlikely to commit a serious crime, especially a serious crime of violence. Now, consider younger immigrants from Central America, who have have few or no skills, who don’t know English, who may be semi-literate, or even illiterate in their own language. If they are female, they will probably cause a draw on the public treasury, if nothing else by sending to school children with special (linguistic) requirements, while contributing little to the financial maintenance of the same schools. That’s the optimistic case, where the children are healthy and normal.

If they are male, they will add to American crime, especially to violent crime because that’s the way it works: Younger, poor men, of no or low literacy are responsible for almost all of the violent crime in America. Note that this pronouncement does not contradict the findings of the excellent article by Michael T. Light and Ty Miller “Does Undocumented Immigration Increase Violent Crime?” published in the Journal Criminology, March 18th 2018. The study on which they report finds that an influx of illegal immigrants does not correspond to a higher crime rate. (Note: It’s a good study by any criteria – I am credentialed to judge.)

The point – beyond the sterile debate about immigrants’ crime rates – is that immigrants of the “right” (wrong) characteristics do not replace the native born one-for-one, including in the commission of crimes. They contribute their own deeds. Take the young California police officer named Singh who was murdered by a crime recidivist illegal alien in early 2019. If Officer Singh had not encountered his particular illegal alien killer, does anyone think that a citizen, or a legal alien would have stepped in to murder him?

This is an abstracted summary from my longer, informational essay on immigration: “Legal Immigration Into the United States.”

Some challenges Brazil has to overcome to achieve development

Now it is true. As I predicted some time ago, Jair Bolsonaro became Brazil’s president. Bolsonaro is not the brightest guy in the room, but I believe he has some qualities a leader requires. Above all, Bolsonaro shows conviction, a quality central to leadership, as Albert Mohler observes. Bolsonaro has the conviction that socialism/communism is the wrong way, and that Brazil has to try an alternative. The alternative, he has grown to understand, is the free market.

In his first remarks as president, Bolsonaro said that Brazil is “leaving socialism.” Some Brazilian friends, even people with high education, found this quote preposterous. In their view, Brazil can’t abandon socialism because she never tried it. That’s quite scary! After almost two decades of rule of the Worker’s Party (PT) there are people in Brazil who believe that Brazil never tried socialism.

It must be observed that PT is a big party, with many internal tendencies. Still, historically the party has the objective of turning Brazil into a socialist country. It is quite shocking that some people haven’t realized this!

On the other hand, many Brazilians still charge capitalism for all the country’s problems. The difficulty with this is that, if we take capitalism as free-market, Brazil has never been capitalist. Brazil’s economic history, in a nutshell, is of government control of the economy.

One of the challenges Brazil has, as surprising as it may be, is to teach people what is socialism and what is capitalism. The other is to make people understand that socialism is just bad. It has been tried. It failed, as it should. Capitalism, understood as economic freedom, worked everywhere. And there is no reason to believe that it wouldn’t work in Brazil.

The childishness of the left

Jair Bolsonaro took office as president of Brazil this last January 1. The government has barely begun, but I think we can already observe a little of what the next four years will look like. During the campaign, Bolsonaro made it clear that his government would be “liberal in the economy and conservative in customs.” Here an explanation is necessary for English speakers: in Brazil “liberal” almost always means “classic liberal,” that is, defender of the free market economy. Conservative, at least in the context of Bolsonaro’s speech, is not so different from the sense of the English language: conservatism as an appreciation of the customs and traditions of Judeo-Christian society.

The speeches of the Bolsonaro himself and his ministers already in office follow exactly this tone. Paulo Guedes, chosen to be the “super-minister” of the economy, made it clear in a speech of almost an hour that Brazil’s problem is excess of state. During the last 40 years or more Brazil has treated symptoms, not the causes of its economic backwardness. The speech of Paulo Guedes was a class of economic history of Brazil.

However, what dominated the Brazilian media in recent days was not a speech, but rather a remark by a minister. Damares Alves, the human rights minister, the one who was harshly criticized for saying she saw Jesus when she was in a guava tree, said at an informal moment that “boys wear blue and girls wear pink.” The speech fell on the media and provoked the reaction of Brazilian celebrities. Many “artists” appeared changing colors, men wearing pink and women, blue. What draws attention in this case, besides the difficulty of understanding figures of speech, is the infantilization of the left activists. Damares said that “boys wear blue and girls wear pink,” not that men wear blue and women wear pink.

The minister’s speech fits into a moment Brazil is living. The cultural wing of the left wants to teach that gender is only a social construction, with no connection to biology, and therefore children should be treated as neutral, awaiting their decision as to what gender they want to adopt. Damare’s remark, therefore, refers to the education of children in public schools, not adult men and women. Brazil is a country free enough for adult men and women to wear the colors they want. The identification of many celebrities with the minister’s speech shows that leftist activists have the mental age of kindergarten children.

Pres. Trump and Me After Two years

I voted for Donald Trump for two clear reasons. First, his name is not Clinton. Second, he promised to nominate Supreme Court Justices from a published list of conservative judges. I have been amply satisfied on both counts.

Accomplishments

Then, I watched pleasantly surprised as the Trump administration engineered a tax reform that could only improve economic growth. Then, it quickly dismantled hundreds of federal regulations, a strategy that could only benefit entrepreneurship and business activity. Sure enough, there was a sudden rise in Gross Domestic Product growth. I don’t have any proof of causality here but the temporal coincidence is gratifying! At the same time, the unemployment rate – which had been going down even in the waning days of the Obama presidency, it’s true – continued to nosedive. It reached an all-time low for African Americans and for Hispanics. That fact illustrated nicely the basic conservative idea that results count more than intentions. (Remember, that Adam Smith wrote the same in 1776 but who reads Adam Smith nowadays?)

Soon, there was the blessed withdrawal from the comedy of the Paris climate “accord.” Then, there was the abrogation of the weak-kneed, poisonous agreement (not a “treaty) with the totalitarian and aggressive Islamic Republic of Iran. I applauded both with both hands. I was pleasantly surprised later by the initiative toward North Korea although I reserve judgment because nothing much has actually been accomplished on that front, except, possibly (possibly) a better mood. I do think President Trump has gone farther on the road to disarming that kingdom of cruelty and madness than any previous president. Yet, Continue reading →

A short note on 2018 and 2019

It’s been quite a year. NOL got lots of love from around the globe, and I’m grateful for every bit of it. I have done a “favorites of 20__” post for the past couple of years but the amount of awesomeness produced at NOL this year was just overwhelming.

I’d brag a bit more about the accomplishments of the Notewriters, but they know how bad ass they are and we’re not passing around a hat for donations or anything like that.

I hope every one of you readers sticks around for 2019, and that you share NOL with friends and enemies alike. I’ve got baby #2 on the way in a couple of weeks (January 11, to be exact), so family and work will continue to take up the bulk of my time. This doesn’t mean you’ll see less of me, but only that I’ll be writing shorter, more intimate posts. The “nightcaps” will continue apace, and “afternoon tea” (on Mondays, Wednesdays, and Fridays) with NOL is getting a facelift. You’ll still get your “eye candy” on Sunday mornings, although it will continue to roll in sporadically.

The shorter, more intimate posts will deal with me as a new individual: as a father, as a monogamous lover, and as a member of a world that continues to surprise, amuse, and sometimes disappoint. I have been reading more books lately, thanks in part to a crappy desk job, and not all of them are fiction. The scholarly work I’ve been devouring (when I have the time) is approached with the following question: why isn’t the idea of a transoceanic federation in here?

I have no idea what the other Notewriters will be bringing to the table in 2019, I only know that whatever they bring will be worth your time (and theirs).

Happy New Year!

Eroding norms and political transformation: A new chance for liberty?

The Hammelsprung

Usually, the debates in Germany’s highest political body – The Bundestag – right before Christmas are not that exciting for the public. Parliamentarians are exhausted from long nights and intense discussions from the past weeks. But on Friday the 14th December, the last scheduled plenary session this year, something remarkable happened in the Bundestag, symbolically standing for the erosion of political norms, which democracies experience for a few years. The topics this day were not too fascinating – they discussed how to make the country more appealing to top-level researchers and if fixed book prices should be abolished. Not trifling, but nothing too crucial either.

But around noon the right-wing party AfD decided to initiate a Hammelsprung. The Hammelsprung is a control mechanism to ensure two crucial things.

First, it can be used to achieve absolute clearness of a voting result. Since the counting of votes mostly takes place via counting hands, a Hammelsprung can help to bring about a final decision in close polls. The process is relatively old-fashioned and quite funny in my opinion: The parliamentarians have to get out of the plenary hall first and then reenter through doors labeled “Yes,” “No,” and “Abstention” while an official counts these votes loudly.

Second, it is a tool to assure that crucial decisions of the parliament are made by a majority of the parliamentarians. If a parliamentary group has doubts that more than half of the parliament’s members are present to an assembly, it can propose a Hammelsprung to determine the exact amount of parliamentarians present. If there are less than half of the parliamentarians present, the parliament does not have a quorum and thus the parliamentary session gets canceled.

How the parliament works

At this point, it is important to mention that the German parliament is a working parliament rather than a debating one (such as the British house of commons). Hence, most of the parliamentary work takes place in exclusive committees. These committees consist of members from each party and are all dedicated to certain political topics such as defense policy, health policy and so on and so forth. Parties look for alliances to back up their policy proposals within these committees. Thus, the majority ratios regarding political proposals are played out not in the big parliamentary debates, but in rather small expert working groups. So one can expect that what gets resolved within a committee, gets resolved in the parliament as well.

These committees meet simultaneously to the parliamentary debates. On top, a parliamentarian has to inform himself, manage his team, be present in his election district and many more things. So it is impossible for him to be present in every parliamentary session. So over the years the norm established, that not every member of parliament need to be physically present during the parliamentary session, but only the experts in the certain relevant subject. During their election campaign, the AfD aggressively attacked this particular norm by labeling parliamentarians of established parties as “lazy” and “self-indulgent”, referring to the many empty seats during parliamentary debates.

A battle against norms and the establishment

The AfD used the Hammelsprung on Friday the 14th December in the second meaning mentioned above: To enforce a cancellation of the parliamentary session regarding the acquisition of top-level researchers. This was not a topic related move to ensure the necessary quota, it was rather yet another milestone in the ongoing battle against existing norms. We can say this for certain because AfD didn’t even re-enter the hall: they purposely stayed outside in order to enforce a cancellation of the session. Alexander Gauland, the party whip of the AfD, explained that they wanted to show that the AfD wants to give the government a “hard time” and added: “He that will not hear must feel.” This can be seen as an act of revenge against the parliament because the AfD’s candidate for the vice presidency of the Bundestag failed to get elected a second time in a row. Contrary to their expectations, enough parliamentarians somehow made their way quickly enough into the parliament to reach the quota necessary to proceed with the debate.

How norms foster social cohesion

But the danger remains: There are several tools populist parties (right or left wing) can use to impede effective governing within a perfectly legal framework. This development is not at all a specifically German one. Steven Levitsky and Daniel Ziblatt provide an in-depth description of the erosion of norms in the American political system in their book How Democracies Die. According to their theory, functioning democracies do not only rely on a thought-out constitution and functioning political organs but also on shared norms. The most important norms for Ziblatt & Levitsky are mutual tolerance and forbearance.

Mutual tolerance describes the recognition of the political enemy as an opposed actor instead as an existential threat to the country. Contrary, forbearance means to restrain the urge of using every legal means to achieve a political end.

It is certainly not too difficult to quantify the erosion of these two norms in America, specifically when one pays closer attention to the skyrocketing amount of “filibustering” in the Congress or, as seen recently, to the increasing times of governmental shutdowns caused by a lack of agreement between Republicans and Democrats over the federal budget. We can see the effects of this abandonment of norms on a daily basis: The more hostile political environment, the lack of respect for other political opinions, the increasing difficulties for finding a compromise between parties. The political opposition is on the verge of drifting away from constructive criticism towards impeding the government in every possible way.

A liberal response?

In my opinion, there are two ways to react to this threat.

First, we could change the rules of the game and narrow the legal framework for processes which can be used to impede effective governing such as filibustering and the Hammelsprung. I do not think that this is the right way to counteract populist parties (or tendencies more generally). These processes exist for a good reason. But they hinge on the observance of forbearance. There was no extensive problem of filibustering in the Roosevelt, Truman, or Wilson administrations, although their policies were also quite controversial. The problem is not the rules themselves, but the lack of shared norms for a solid foundation to put them to good use. Furthermore, changing the rules would only foster the thought that a perfect constitution is somehow reachable. And here I see the danger, that we might jeopardize the status of the law as a neutral guardrail for society and it instead becomes an arbitrary mean to achieve political ends, as Frederic Bastiat describes in his work The Law.

The second option is to adjust our own behavior to the changing circumstances brought by the new populist players one the pitch. Therefore the established political actors need to carefully reevaluate the importance of certain norms and if necessary transform them. Of course, this is not as easy as said: It presupposes a willingness to cooperate among established actors (which is nothing to take for granted in today’s times) as well as a vigilant public, which backs up those norms. Additionally, norms do not emerge from scratch. They are rather the result of a slow change in the mutual understanding of social human interaction.

What the future will bring

The AfD already has announced that they want to continue to use every legal (and in some cases illegal) way to make it harder to govern the country, which is their way to battle the establishment. Whereas the established parties tried various strategies to cope with this right-wing populist party ranging from ignoring to direct confrontation. Still, nobody knows exactly how to deal with these new political circumstances. But what is for certain is the political landscape is further going to change; and thus also politicians and parties will need new strategies, structures, and norms.

Although this development is mostly seen as the road to a gloomy and authoritarian future, I believe (or at least I hope) that democratic parties will find new ways to counter right and left wing populist proposals. Instead of trying to engineer our legal framework to preclude populist from polls, politicians should focus on giving scope for spontaneous order and new alliances. This process is incredibly exciting to me. As Steve Davies describes it, we are currently witnessing a “great realignment” of party structures in Europe. And where old structures break up, there is room for new ones. European liberal party leaders (carried by the Axis of Linder – Rutte – Macron) are still looking for their place in this new power vacuum. Nobody can predict where this development will lead us. That is why we must proceed to fight for our liberty: inside and outside of political party structures.

How the United States can woo Africa away from China

On December 13, 2018, US National Security Advisor John Bolton, while speaking at the Heritage Foundation, highlighted the key aims and objectives of ‘Prosper Africa,’ which shall probably be announced at a later date. The emphasis of this policy, according to Bolton, would be on countering China’s exploitative economics unleashed by the Belt and Road Initiative, which leads to accumulation of massive debts and has been dubbed as ‘Debt Trap Diplomacy’. A report published by the Centre for Global Development (CGD) (2018) examined this phenomenon while looking at instances from Asia as well as Africa.

During the course of his speech, Bolton launched a scathing attack on China for its approach towards Africa. Said the American NSA:

bribes, opaque agreements and the strategic use of debt to hold states in Africa captive to Beijing’s wishes and demands.

Bolton, apart from attacking China, accused Russia of trying to buy votes at the United Nations through the sale of arms and energy.

Bolton also alluded to the need for US financial assistance to Africa being more efficient, so as to ensure effective utilization of American tax payer money.

The BUILD

It would be pertinent to point out that the Trump administration, while realizing increasing Chinese influence in Africa, set up the US IDFC (International Development Finance Corporation), which will facilitate US financing for infrastructural projects in emerging market economies (with an emphasis on Africa). IDFC has been allocated a substantial budget — $60 billion. In October 2018, Trump had signed the BUILD (Better Utilization of Investments Leading to Development) because he, along with many members of the administration, felt that the OPIC (Overseas Private Investment Corporation) was not working effectively and had failed to further US economic and strategic interests. Here it would be pertinent to mention that a number of US policy makers, as well as members of the strategic community, had been arguing for a fresh US policy towards Africa.

Two key features of IDFC which distinguish it from OPIC are, firstly, deals and loans can be provided in the local currency so as to defend investors from currency exchange risk. Second, investments in infrastructure projects in emerging markets can be made in debt and equity.

There is absolutely no doubt that some African countries have very high debts. Members of the Trump administration, including Former Secretary of State Rex Tillerson, had also raised the red flag with regard to the pitfalls of China’s unsustainable economic policies and the ‘Debt Trap’.

According to Jubilee Debt Campaign, the total debt of Africa is well over $400 billion. Nearly 20 percent of external debt is owed to China. Three countries which face a serious threat of debt distress are Zambia, Republic of Congo, and Djibouti. The CGD report had also flagged the precarious economic situation of certain African countries such as Djibouti and Ethiopia.

US policy makers need to keep in mind a few points:

Firstly, Beijing has also made efforts to send out a message that BRI is not exploitative in nature, and that China was willing to address the concerns of African countries. Chinese President Xi Jinping, while delivering his key note address at the China-Africa Summit in September 2018, laid emphasis on the need for projects being beneficial for both sides, and expressed his country’s openness to course correction where necessary. While committing $60 billion assistance for Africa, the Chinese President laid emphasis on the need for a ‘win-win’ for both sides.

African countries themselves have not taken kindly to US references to debt caused as a result of China. While Bolton stated that Zambia’s debt is to the tune of $6 billion, an aide to the Zambian President contradicted the US NSA, stating that Zambia’s debt was a little over $3 billion.

At the China Zhejiang-Ethiopia Trade and Investment Symposium held in November 2018, Ethiopian State Minister of Foreign Affairs Aklilu Hailemichae made the point that Chinese investments in Ethiopia have helped in creating jobs and that the relationship between China and Ethiopia has been based on ‘mutual respect’. The Minister also expressed the view that Ethiopia would also benefit from the Belt and Road Initiative.

During the course of the Forum of China-Africa cooperation in September 2018, South African President Cyril Ramaphosa had also disagreed with the assertion that China was indulging in predatory economics and this was leading to a ‘New Colonialism,’ as had been argued Malaysian Prime Minister Mahathir Mohammad during his visit to China in August 2018.

Washington DC needs to understand the fact that Beijing will always have an advantage given the fact that there are no strings attached to it’s financial assistance. To overcome this, it needs to have a cohesive strategy, and play to its strengths. Significantly, the US was ahead of China in terms of FDI in Africa in 2017 (US was invested in 130 projects as of 2017, while China was invested in 54 projects). Apart from this, Africa has also benefited from the AGOA program (Africa Growth and Opportunity Act), which grants 40 African countries duty free access to over 6000 products.

Yet, under Trump, the US adopts a transactionalist approach even towards serious foreign policy issues (the latest example being the decision to withdraw US troops from Syria) and there is no continuity and consistency.

US can explore joint partnership with allies

In such a situation, it would be tough to counter China, unless it joins hands with Japan, which has also managed to make impressive inroads into Africa, in terms of investments, and has also been providing financial assistance, though it is more cautious than China and has been closely watching the region’s increasing debts. Japan and India are already seeking to work jointly for promoting growth and connectivity in Africa through the Africa-Asia Growth Corridor. The US is working with Japan and India for promoting a free and open Indo-Pacific, and can work with both countries for bolstering the ‘Prosper Africa’ project.

Perhaps, Trump should pay heed to Defence Secretary Jim Mattis’ (who will be quitting in February 2019) advice where he has spoken about the relevance of US alliances for promoting its own strategic interests.

There are of course those who argue that US should find common ground with China for the development of Africa, and not adopt a ‘zero-sum’ approach. In the past both sides have sought to work jointly.

Conclusion

African countries will ultimately see their own interests, mere criticism of China’s economic policies, and the BRI project, and indirectly questioning the judgment of African countries, does not make for strategic thinking on the part of the US. The key is to provide a feasible alternative to China, along with other US allies, or to find common ground with Beijing. Expecting nuance and a long term vision from the Trump Administration, however, is a tall order.

Damares Alves and the left’s hypocrisy

The last polemic in Brazilian politics was due to a testimony of Damares Alves, chosen by Jair Bolsonaro to be his minister of human rights. In a video that is available on YouTube, during a religious service, Damares tells how in her childhood, between 6 and 8 years of age, she was systematically sexually abused by someone close to her family (some sources I found say that the abuser was her uncle). To add to the sexual abuse, the criminal also exploited her psychologically: he told Damares that if she denounced him, he would kill her father. He also said, taking advantage of the religious beliefs of Damares, that she would not go to heaven because she was “impure.”

Damares tells that she unsuccessfully tried to ask for help from people in her family and her church. She would frequently climb a guava tree in her backyard to cry. When she was 10 years old, she climbed that same tree, having rat poison with her, in order to commit suicide. She tells that this is when she saw Jesus, coming to her. Jesus climbed the tree and hugged her. She felt accepted by Jesus, and she gave up the suicidal ideas.

Damares went on to become a lawyer. For many years she has been defending women who like her are victims of sexual abuse. Because of the violence she suffered as a child, she can’t bear children. However, she adopted an Indian child who would otherwise be murdered by her parents – some tribes in the Amazon believe that some children must be murdered at birth due to a series of reasons. Damares saved one of these children.
Someone cut from the video only the part where Damares says that she saw Jesus from the guava tree. The video went viral, and “crazy” is one of the milder insults directed at Damares on social networks.

In sum: the Brazilian left makes fun of a woman who was sexually abused as a child. Damares’ religious faith helped her cope with the pain. To be honest, I am usually skeptic about stories like the one she told. But what does it care? Somehow her faith in Jesus helped her to cope with one of the most horrendous things that can happen to a person. But it seems that Bolsonaro’s political adversaries have no sensitivity not only to a person’s religious beliefs but to the violence women and children suffer. When the violence does not fit their cultural and political agenda, they don’t care.

As I wrote here, Liana Friedenbach, 16 years old, was kidnaped, raped, and killed by a gang led by the criminal Champinha. Defending Liana, Bolsonaro wanted laws to be tougher on rapists. Maria do Rosário did not agree with Bolsonaro, and even called him a rapist. Bolsonaro offended her saying that “even if I was a rapist, I would not rape you.” The left in Brazil stood with Maria do Rosário and condemned Bolsonaro. The same left today mocks a woman who was sexually abused in her childhood, but who grew to help women in similar situations. Instead, they prefer to make jokes about Jesus climbing guava trees.

Jair Bolsonaro, Maria do Rosário, and the Champinha case

Over a decade ago, in November 2003, Liana Friedenbach, 16 years old (a minor in Brazil law), and Felipe Silva Caffé, 19 years old, were camping in an abandoned farm close to São Paulo.

While they were camping, the couple was found by a group led by Roberto Aparecido Alves Cardoso, aka “Champinha”. Initially, Champinha and his group wanted to steal from the couple. Realizing that they had little to no money, they changed their minds and decided to kidnap Liana and Felipe.

In the first day of captivity, one member of the gang raped Liana. Felipe was killed on the next day with a shot in the back of his head. Liana heard the shot, but the group lied to her saying that her boyfriend was set free. Liana was then raped by other members of the group led by Champinha.

The group never contacted the families asking for a ransom. On the third day, Liana’s family, worried about the lack of contact, called the police, which found the place where the couple was camping, with some of their belongings. Noticing that the police was closing in, Champinha killed Liana with knife strokes.

Champinha, the leader of the group who kidnapped, raped, and murdered Liana, was underage when the crimes happened, and because of that could not be sent to prison. Instead, he was interned in a correction institution.

The crime shocked Brazil. It was answering this crime that Jair Bolsonaro, at the time a congressman, was clamoring for a change in Brazilian law, allowing criminals like Champinha to be prosecuted. Maria do Rosário, a congresswoman from PT, the party of former president and today prisoner Lula da Silva, was opposing Bolsonaro. During their debate, Maria do Rosário called Bolsonaro a raper. Bolsonaro answered “I am a raper? Look, I would not rape you because you don’t deserve it”. Later Bolsonaro explained that he intended to insult Maria do Rosário by saying “even if I was a raper, as you say, I would not rape you because you are too abominable, even for that”.

So that’s it. I hope this helps non-Portuguese speakers who can read English to understand a polemic phrase attributed to Bolsonaro. And I also hope that Brazilian law is changed someday so that justice can be made and criminals like Champinha and his gang get the death penalty for their crimes.

A Brazilian view on the French Protests

Paris has been taken by a great number of protesters complaining about (yet another) tax, this time on fuel and with the justification of “combating climate change”.

Five years ago, in 2013, several cities in Brazil (Rio de Janeiro among them) were taken by protesters. They were initially complaining about a rise in the bus tariffs. A small rise, if examined by itself, but apparently the last drop among a number of reasons to be discontent.

The Brazilian protests of 2013 were very ironic. Lula da Silva, a socialist, was elected president in 2002. He was reelected four years later, despite major indications that he was involved in corruption scandals. Lula left office very popular, actually, so popular that he was able to make a successor, Dilma Rousseff, elected president in 2012. It was during Dilma’s presidency that the protests took place. They were initially led by far-left groups who demanded free public transportation. So here is the irony: a far-left group, with a far-left demand (free public transportation), was protesting against a (not so far) left government. The situation became even more ironic because millions of Brazilians, who didn’t identify as socialists, also went to the protests, not because they wanted free public transportation (most people are intelligent enough to understand, even if instinctively, that such a thing cannot exist), but because they were fed up with the socialists government at one point or another.

The lesson is: “The problem with socialism is that you eventually run out of other people’s money.” The 2013 protests culminated this year, with Bolsonaro’s election. Mises observed very acutely that socialism simply cannot work. What he observed on paper, reality has confirmed again and again. France is just the latest example.