ICE as Education Planners

Yale recently reclassified economics as a STEM (science, technology, engineering, and math), and other schools may follow suit. It’s a public-spirited regulatory arbitrage–by reclassifying to “Econometric and Quantitative Economics” they make it easier for international students to continue working in the U.S. after graduation. But by capitulating to regulatory nonsense, they’re sacrificing the long-run vitality of the field.

Here’s how this whole classification thing works: Immigration and Customs Enforcement (ICE) has a “STEM Designated Degree Program List” that specifies which programs on the Department of Education’s list of degree programs qualify as STEM. Students with degrees in these fields get special status as far as immigration. ICE’s list includes (among others) several psychology programs and three social science programs: Archaeology; Cyber/Computer Forensics and Counterterrorism; and Econometrics and Quantitative Economics.

What can we infer from this? That the feds are defining STEM narrowly, with a greater emphasis on engineering than science. STEM is about training people to do science-y work with practical applications. Basic research gets lip service, but only really matters so far as it’s likely to have clear applications in the future.

Economics has some parts that fit into such a view of STEM. Even I’ll admit (controversially for Austrians and Anarcho-Capitalists) that positive-sum social engineering a) is possible (in modest increments), and b) has something to learn from economics. But to include all of econ in STEM would require using a broader definition of STEM.

So what’s the upshot? High profile departments will focus more on a narrower part of economics pushing much of the field to the periphery. This is a retreat into more isolated academic silos. “Economics, general” leaves a vague space around a department, but taking a more specific designation means they can be held to more specific expectations. It might have little impact on the day-to-day life of a department, but in the long run they’re hamstringing themselves.

The problem these departments are trying to address is that ICE has too much power. But by playing this game they’re letting ICE play central planner in the education industry!

More on the Turkish Elections

This is a sequel to my recent post Turkish Elections: Some Hope, so is best read after reading its predecessor.

In the last post, I covered the National Assembly elections on the 24th June. The first round of the presidential elections will take place on the same day and there will be a run-off between the two main candidates on the 8th July, if no candidate gets more than 50% on the first round.

As by far the strongest personality in Turkish politics over the last 15 years, Recep Tayyıp Erdoğan was no doubt expecting to win in the first round easily. He did so in 2014 when he was first elected to the presidency at a time when the president’s powers were much smaller. The two largest opposition parties of the time (CHP and MHP) put up a joint presidential candidate little known to the public and who did become much better known during the campaign. The campaign was in fact a surrender to Erdoğan who went on to ignore the constitutional limits on the presidency and push through plans for a presidential republic with little of the checks and balances known in other presidential republics, at least those in established democracies.

This presidential campaign has been an unpleasant surprise for Erdoğan. He has turned the MHP into a satellite party which supports him for the presidency. The cost of that, however, is that he has tied himself to a declining party in an attempt to compensate for a weakening of AKP (Erdoğan’s party) support since the days when it got 50% and over of the electorate.

The opposition has now found an energy unprecedented during the Erdoğan-AKP years (since 2002). It has turned the first round of the presidential election into a run-off to decide who will face Erdoğan in the second round, maximising opposition strength as its candidates enthuse different sectors of Turkish society against the current regime. It now looks impossible for Erdoğan to win the first round (without the help of rigging which is a real danger).

Some thought the opposition had already failed the presidential election when Abdullah Gül, who was President before Erdoğan, declined to run as a candidate of the small opposition religious conservative party SP. The idea around was that the two main opposition parties would accept him as a joint candidate. It is not clear this would have ever happened, and anyway Gül declined to run. He had been a founder of the AKP, but has not re-joined since leaving the office of President in 2014. At that time the President was required to resign from any political party. Gül has made indirect criticisms of the AKP under Erdoğan, but is a non-confrontational politician who has not put himself in clear opposition to Erdoğan and few expected he ever would. Some had the attitude that Gül was the only chance of the opposition winning the presidential election. I was never convinced myself. Adopting an AKP politician central to the AKP’s colonisation of the state and parts of civil society, particularly the main media companies, would have been a defeatist gesture, particularly given Gül’s own lack of energy in very stark contrast with Erdoğan.

The four largest opposition parties will all run presidential candidates, though three of these parties have formed a joint list for the National Assembly elections. Two of these candidates have a real chance to win. That is Meral Akşener and Muharrem İnce. Akşener is the leader of the second opposition party, İYİ, which broke away from the MHP. It has overtaken the MHP as the largest nationalist party. Though it has a clearly nationalist orientation, mixing Atatürk republicanism with nostalgia for the Ottomans and pre-Ottoman Turkish leaders, it has a a milder version of this than the MHP. İnce is a centre-left secularist CHP politician who previously tried to replace Kemal Kılıçdaroğlu as leader of the CHP.

Kılıçdaroğlu is not a strong public personality and has often been dismissed even by CHP sympathisers. However, he did a good job of keeping the CHP relevant in the period after the coup attempt of July 2016, when Erdoğan seemed to be achieving even more complete domination of Turkish public life. Kılıçdaroglu most famously led a Justice March from Ankara to Istanbul last summer, usefully turning his anti-charisma reputation into an image of quiet decency and endurance, marching for many days under a hot Turkish sun, though he is in his late 60s and there were constant fears of state promoted violence against the march.

Kılıçdaroğlu was again dismissed as too passive at the time Gül declined to run, and Kılicdaroğlu ruled himself out of the Presidential contest. It has turned out that he has maximised his strengths and weaknesses, by showing the inner self-confidence to allow his rival İnce to run for the most powerful office in Turkey. İnce has been a great campaigner so far and is doing better than I expected.

I thought Akşener would easily be the strongest opposition candidate, and she is doing well, but is very close to İnce, both for getting through to the second round and defeating Erdoğan. The latest opinion polls suggest Erdoğan would beat both but by a very small margin, meaning that a strong campaign by İnce or Akşener could win in the end, particularly if supporters of rival parties turn out in a spirit of unity for change.

The general thinking in Turkey now is that the opposition is likely to win the National Assembly but not the Presidency. Nevertheless the presidential contest is going far better than expected for the opposition and Erdoğan could look very diminished running in the second round after the AKP-MHP electoral list loses the National Assembly (where it currently has a two-thirds majority). İnce represents the most leftist and most nationalist element of the CHP. This combination is not unusual in Turkey, though left-nationalists prefer to identify themselves through the Turkish word for patriot rather than nationalist. I thought this would be a problem for İnce, in that he might be a negative both for Kurdish and centrist voters, but he has shown a capacity to reach out and make gestures to these sectors. Since the CHP National Assembly list has reduced the number of left-nationalists, his presidency would not be the unconstrained triumph of that particular point of view.

Eye Candy: the US Asian population, circa 2010

NOL map US Asian population
Click here to zoom

“Asian” is a pretty broad term. Racial classifications are, perhaps, the dumbest thing in the world.

Imagine seeing something like this in the press today, or this as an advertisement. There’s been lots of progress in this country, it’s just hard to see sometimes.

Lucas Freire: 2018 Novak Award winner

Edwin just alerted me to this announcement from the Acton Institute:

GRAND RAPIDS, Mich., May 23, 2018—In recognition of Professor Lucas G. Freire’s outstanding research in the fields of philosophy, religion, and economics in the ancient Near East, the Acton Institute will be awarding him the 2018 Novak Award.

Despite Michael Novak’s passing in February 2017, his memory will continue to be honored every year with the presentation of the Novak Award. This recognizes new outstanding research by scholars early in their academic careers who demonstrate outstanding intellectual merit in advancing understanding of the relationship between religion, the economy, and economic freedom. Recipients of the Novak Award make a formal presentation at an annual public forum known as the Calihan Lecture. The Novak Award comes with a $15,000 prize.

Lucas G. Freire is an assistant professor at Mackenzie Presbyterian University in São Paulo, Brazil, and a fellow at the university’s new Center for Economic Freedom. He is also a postdoctoral fellow at North-West University in Potchefstroom, South Africa. He received his PhD in politics from the University of Exeter. Previously, he also served as a research associate with the Kirby Laing Institute for Christian Ethics in Cambridge, UK.

Professor Freire has commented on political and economic issues drawing on Christian thinking in the Reformed tradition. He has published on political theory and philosophy in journals such as Philosophia Reformata and Acta Academica. His current research focuses on the connection between religion, politics and economics in the ancient Near East and the biblical world. He lives in São Paulo with his wife and two children.

Congratulations Lucas!

Here are his posts at NOL so far. Now that he’s got a bit more money in his pocket, perhaps he will have some time to spare for blogging…

Israelis Kill Unarmed Palestinians in Gaza

The Israeli Defense Force is killing unarmed demonstrators in Gaza. The Defense Force is on one side of the fence, the demonstrators on the other. What happened is that the ruling political party in Gaza, Hamas, sent the demonstrators to try and breach the fence separating Gaza from Israel. The declared purpose was to have Gaza Palestinians exercise their “right of return.” Hamas means the “right” of Palestinians to return where their forebears used to live, or maybe not, or nearby, etc, right inside present-day Israel. Of course, if Israel allowed this, Israelis might just as well start packing. It would be the end of the Jewish state that already has about 1.85 million Muslim and Christian Arab citizens. Both Palestinians and Israeli Arabs reproduce faster than Israeli Jews, by the way. (It’s the Jews’ fault, of course; they should get busy.) Hamas generously would allow Jews of Middle Eastern origin to remain as second-class, tribute-paying dhimmis. All the others, the majority, would have to leave quickly. Ethnic cleansing is the best scenario if Hamas wins, according to Hamas. The worst? Hamas does not say.

The mid-May 2018 demonstration was presented as a way to commemorate what Palestinians call “the disaster “– meaning the creation of Israel and the wholesale defeat the Arabs suffered in the war they had started against the new state. Initially, it had nothing to do with the inauguration of the new American Embassy in Jerusalem. It was mostly the Amerileft media that created a link with such devices as showing the inauguration in Jerusalem on a split screen with the rioting in Gaza. Many Americans, some of whom can’t place the US on a world map, would have believed that Palestinians were dying while the Americans and Israelis were gaily drinking champagne right next door.

The Israelis had warned early on that they would shoot demonstrators who tried to breach the fence separating Israel from Gaza. They did, killing about 70 Palestinians. That’s harsh but no one can call it unfair: They said it clearly: If you touch our fence, we will kill you. Don’t touch the fence, I would say. Little detour: the magazine Commentary pointed out that the Gaza authorities claim that 1600 Gazans were wounded by real bullets. What’s wrong here is the ratio of wounded to killed, 1600/70. It should be something like 1600/500 . It does not add up or else, the Israelis snipers are real bad at their job. Go figure!

Hamas thinks it’s winning because of the large number of unarmed demonstrators, its youths, wounded and killed. It’s been acting like this forever. Just a week ago, Gazans (who may have been Hamas agents or not) deliberately destroyed the valve to the main pipeline supplying Gaza with diesel fuel. The more misery ordinary residents of Gaza suffer, the happier the Hamas government is because Israeli atrocities give it standing among the ill-informed and mindless everywhere. I am tempted to feel sorry for Gazans myself because of the terrible government they live under. I can’t quite do this; below is why.

Hamas was elected in proper well observed elections. Although the Hamas government is well overdue for a new election, I would argue that the initial election makes Hamas one of the most legitimate governments in the Middle East. Hamas is explicitly an Islamist party. It does not think well of freedom of religion. It wants to impose sharia but does not feel strong enough yet. Hamas is in favor of polygamy. Young Gaza Palestinians are dying because of actions encouraged by their government, the Hamas government. Their parents properly elected that government. There has been no rebellion against it. The mass of the population seems loyal.

Hamas is insuring an aggravation of a situation in Gaza that is pretty much intolerable already. Israel left Gaza unilaterally 15 years ago but it maintains a partial blockade of the territory. It provides fuel and electricity and most of the water available, on its terms. It allows certain merchandise in but not others. Cement is limited, for example, I read in a source I can’t quote now but that I found credible at the time that Israeli Customs allow in milk and sugar but not instant coffee – which makes life more enjoyable. There is almost no work in Gaza, except working for the Hamas government. Nevertheless, no one there is starving because the territory is largely on welfare. Gaza has one of the highest educational achievement scores in the world although there is malnutrition there.

Gaza is a welfare non-state. It has no industry and very little else by way of earning its living. (That’s in part because of Israeli control over its borders, of course.) It’s an economic ward of the UN and secondarily of the European Union and of the USA. American Jews are thus among those supporting through their taxes riots where the main demand is “Death to the Jews!” The Leftmedia does not seem to be willing to mention, or it actually does not know, that the Israeli blockade of Gaza would be ineffective, almost useless, if Egypt did not join in. Yes, Egypt is also impeding the movement of goods, funds, and especially of people between itself and Gaza. And the PLO, which rules the West Bank, the other part of Palestine, has its own punitive measures against Gaza. Hamas is everyone’s favorite!

If you too feel revolted by the Israeli killings of Gaza demonstrators, and if you don’t think that righteous indignation is its own reward, I invite you to take two minutes to answer the following simple and sensible question:

Suppose you have a chance to advise the Israeli Prime Minister; suppose further that you have reason to believe that he will pay attention to you; what’s your advice to him regarding the present situation in Gaza (mid-May 2018)?

You can be sure that I have answered the question myself.

PS I am not Jewish, never have been, never will be. I am not a fundamentalist Christian either.

What is the proper role of government?

Former Brazil’s president Dilma Rousseff publicly lied by saying that she had a M.A. and a Ph.D. in Economics. The lie was discovered in 2009, when she still wasn’t Brazil’s president. Maybe that’s the problem with Dilma: she would even lie to say she was highly competent in economics.

Nobody in the 19th century believed that the role of government was to control the economy. This notion only became strong in the 20th century and to a great degree thanks to Keynesianism. It was Keynes who popularized the notion that the free market is inherently unstable, and that government should exercise some oversight on it.

Jair Bolsonaro, the Brazilian presidential candidate ahead in the opinion polls, has no problem admitting he doesn’t know enough about economics. For me, this is one of his main strengths. In the past, Bolsonaro was more statist. Today he shows signs of becoming more inclined towards free markets. He is clearly willing to delegate the economic policy of his government to people who are strongly favorable to the free market. In other words, Bolsonaro doesn’t know a lot about economics and he is not ashamed of admitting it. But he knows that too much government control ruins a country’s economy.

Dilma is arrogant. Part of her arrogance is to believe that she would be able to control the economy politically. Bolsonaro seems to be humble enough to admit that’s impossible. Keynes believed that the economy is inherently unstable. Contradictorily he advised governments to try to control it. Hayek’s answer to Keynes was that economics is not a science you can master in college. There are simply way too many variables for any human to control.

Bolsonaro’s focus is on public security. Criminality is on the rise in Brazil. People are afraid of walking on the streets, especially in big cities like Rio de Janeiro and São Paulo. That should be the role of government: to guarantee we can go out for work, come back, and not get killed or robbed on the way. If the government is doing that, it is already doing a lot. People freely and willingly interacting with one another can do the rest. Guarantee that evildoers will be punished, and watch the economy fly. And before I forget: contrary to cultural Marxism (and Rousseau), criminals are not victims of the society. Society is the victim of criminals.

The Mexican-American War, and another warm welcome

My topic over at RealClearHistory today is the Mexican-American War and slavery, so be sure to show me a little extra love and have a peek. An excerpt:

The British, for their part, played an ingeniously devious role. London convinced Mexico to finally recognize Texas independence in 1845, as long as Texas agreed to avoid annexation by another sovereign polity. This put enormous pressure on factions in Washington, Austin, and Mexico City, so much so that Tyler, by then a lame-duck, urged Congress to put aside its differences and offer statehood to the Republic of Texas (which it did). In Austin, the process was a little trickier. The Congress of the Texan Republic had to vote on whether to be independent or to be annexed, but so did a newly-formed convention of elected delegates, which was one of the requirements imposed on Texas by the United States. (Washington felt that a convention of elected delegates better fit the profile of an incoming state than a Congress that had been independent for 10 years.) Both the Congress and the convention of delegates voted in favor of annexation over independence. The convention of delegates then drew up a state constitution, turned it over to the people of Texas to be ratified, and then sent it to Washington for Congressional acceptance. On Dec. 29, 1845, the U.S. Congress finally ratified statehood for Texas.

Please, read the rest. Annexation is a topic I will continue to explore, albeit from NOL rather than RealClearHistory, so stay tuned. “Entrance” is just as important as “exit” in libertarian theory, even though the latter gets all of the fame and fortune these days.

Speaking of entrances, I’d like to officially, warmly welcome Shree Agnihotri to the consortium and highlight her first thoughts with NOL: “Role of a Citizen in Hegemonic Authoritarianism.” I’m not going to spoil it for you, but it’s about Hannah Arendt, so if you haven’t read it yet, now would be a good time (don’t forget to say ‘hi’ while you’re at it). Here is her bio. Here is more from NOL on Hannah Arendt. I’m stoked to see what she has to say over the years!

A Confession: I Voted for Trump

A younger friend of mine, an immigrant like me, keeps having trouble understanding why I voted for President Trump, toward whom she drips with hatred. She produces so much hatred of the president you might think she knows him personally. He might even be an ex-husband of hers. This is a little hard for me to understand. Here is my honest reconstruction of how I came to vote for Donald Trump in 2016. May it be useful to her and, if not, to others.

During the 2016 campaign, I was mostly sad and resigned. It looked like the Dems had the wind in their sails. The Republican contest between 16 viable candidates had ended in the victory of the least viable of them, Donald Trump. For the record, my candidate was Marco Rubio, who dropped off early.

Donald Trump was loud and ignorant, and loudly ignorant. His statements about international trade were those of a lazy undergraduate who has barely skimmed the relevant chapter, and got it all wrong. His project for a southern wall struck me as the wrong solution to the wrong problem at the wrong time. Illegal immigration through the Mexican border has been dropping for years. A good wall might even end up trapping more illegal Mexicans wanting to go home than keep illegals out. Besides, no wall would stop visitors from entering legally and then overstaying their visa. Finally, I don’t even think illegal immigration is a pressing problem although it must be stopped for reasons of sovereignty. Mr Trump wanted less immigration of all kinds; I think this country needs more immigration but better regulated.

There is no doubt, (there was none then) that Mr Trump has impossibly bad manners (although that makes part of me smile). I think he has a personality disorder (as I have) which causes him to speak out of turn, to think only after he opens his mouth, and to open his mouth even when his brain tells him he shouldn’t. He gives the cultural elite heartburn. I am not sure how I feel about this though because I know the cultural elite well since I spent thirty years in academia. They are mostly a bunch of half-literate pretenders who richly deserve the occasional heartburn.

At any rate, it wasn’t obvious I would vote for Mr Trump; I kept looking over the fence. I did this in spite of the fact that the Dems keep enlarging government against civil society, the reverse of what I want to see. I did it in spite of the Democratic Party’s promotion of identity politics which are bad for America, I believe, and bad even for the Democratic Party. (As I write, even African Americans are deserting the party.)

There, on the Dem side, for a while, it looked like Sen. Sanders had a fighting chance. I don’t like socialism – whatever that means – but here was an honest man with a clear record. Sanders is my age. I feel as if we had gone to college together. He has not changed since 1968. Everything about him feels familiar, even his college president wife with the short hair. I thought that if elected, he would only attempt modest reforms that would easily be frozen out by a Republican Congress. The result would be a kind of federal immobility, not the worst scenario, in my book. If Mr Sanders had become the Dem candidate, I would at least have had a serious talk with myself about voting for him. That’s at least.

Mr Sanders was eliminated from the Dem race in a way that revived all my aversion for the Democratic Party as an organization. The thoroughly dishonest manner of his removal would have been enough to ensure that I would not vote for the actual Dem candidate, pretty much whoever that candidate was. The fact that Sanders protested but feebly the gross cheating against him makes cold sweat run down my back because of what it implies about the Dem culture.

The actual candidate was not just anyone (“whoever”). Mrs Clinton was a caricature of the bad candidate. She was a feminist previously elected on her husband’s coattails, and a career politician with no political achievements of her own. Her main contribution as Secretary of State was to get the US militarily involved in the events in Libya. (I was in favor of such involvement myself at the beginning, I must confess.) She ran for president with no economic program – which normally implies the continuation of the predecessor’s program. But Mr Obama’s economics were very bad; what was not bad could be credited to the independent Fed. I did not want more of this. Then, there was the personal issue. It’s a little difficult to explain but I developed the idea in my mind that even her supporters did not like her. So, how could I?

Mrs Clinton’s campaign was naturally an embodiment of the Dem Party’s silly identity politics which I think are bad for American democracy in ways I won’t develop here: “Vote for me,” she said, “because I am a woman.” So, what? So are 52% of the adult American population; many of those are brilliant. Mrs Clinton is not brilliant, not even close. By contrast, take Prof. Condoleeza Rice, the former Secretary of State, for example. (Plus, she is black; you get a two for one; plus, she is probably a closeted lesbian too, that’s a three for one!)

Donald Trump throughout his campaign was attacked for being a racist. I saw and heard many imprudent statements, some rude statements, and many goofy declarations but I did not notice racist statements. That’s if “racist” means attributing to a whole class of people negative moral qualities or objectionable behaviors based solely on their race (whatever race is, another story). My common sense also says you can’t live as a prominent New Yorker in various guises for a whole adult lifetime and not be called out for racism if you act like a racist. It’s jut a little late to do it when the man is seventy. It’s ridiculous, in fact. Or, perhaps, I have just stopped paying attention to charges of racism coming from the left. Leftists intemperate verbal habits may have trivialized racism the way they trivialized so many serious social problems, including sexual violence.

There was no doubt in my mind though that Donald Trump would be dangerous as president because he is unpredictable, does not readily listen to advice, and does not understand well how our institutions work. So, I was never enthusiastic about voting for him. I even took a detour through the Libertarian campaign. It was based on the assumption that any Dem, including Clinton, would carry California, where I vote, and that I could therefore afford the luxury of a symbolic ballot. However, after a short time, I became convinced that the Libertarian candidate was not even libertarian. So, end of story here.

During the period preceding the campaign, when Clinton was Secretary of State, and during the campaign itself, I paid increasing attention to the goings-on around the Clinton Foundation, including the pattern of donations. I came out convinced that Mrs Clinton’s eagerness to sell the Republic and her disregard for the law (30,000-plus lost emails) made her a political gangster of the same ilk and magnitude as Vladimir Putin.

So, you might say that I voted for Donald Trump because I thought he was unpredictable. Clinton, by contrast, was horribly predictable. It’s fair to add that I did not think my vote would carry the day. Like just about everyone else, I thought my side had lost until about 7 pm, Pacific Time on election day.

One year and a half later, I feel no buyer’s remorse; instead, I am pleasantly surprised. Pres. Trump has not really done any of the things I feared – such as dismantle the modern world system of fairly free world trade; he has not built a wall. When he does, I think it will be a small elegant one with viewing balconies over Mexico. Mexican tourists will gladly pay for the privilege of going up its exterior elevator. There will be a lounge and bar with overpriced drinks on the last floor.

Pres. Trump has done a couple of the things I wanted him to do, beginning with the appointment of a conservative Supreme Court Justice. He also instigated and carried out a major tax reform which will fuel good economic growth for years to come. (I am dissatisfied with the current rate. I think anything under 3.5% is not good enough. But, it’s a start.) The tax cut may even make up for the disastrous spending bill which he signed reluctantly but did sign.

Pres. Trump has also done the deliciously unexpected. I am not holding my breath (writing on 5/9/18 ) but I am amazed and delighted he has gone so far on the road to the denuclearization of North Korea. The fact that the thaw is largely a product of his bullying the North Korean bully makes this even sweeter.

After more than a year of unlimited investigation with limitless resources, the only Russian collusion in sight is that of the Clinton campaign buying from a shady international operative grotesque stories about Trump in Russia. The only shadow on this bright picture is that I am not completely sure that Mr Trump did not have sex with a porn queen several years before running for office. The horror!

“How could Nixon have won? Nobody I know voted for him”

It’s always nice, now and then, to remind people in the press and in academia of Pauline Kael’s famous (or infamous) quote referring to George McGovern’s loss to Richard Nixon in the 1972 presidential election. Apparently, it is a misquote, but I don’t think that it matters all that much.

The fact is that too many people in the press and in academia live in a leftist cultural bubble. This bubble made many people blind to Trump’s favoritism in the last US presidential election. The same bubble is happening in Brazil now, where journalists and political analysts are disconcerted by Jair Bolsonaro’s favoritism in the October elections.

The fact is that people in different social circles have different Overton windows. Created by Joseph P. Overton, the Overton window, or the window of discourse, describes the range of ideas tolerated in public discourse. But by “public” many people consider only their close social circle. People grow up in specific neighborhoods, go to specific universities, work in specific places, and are never or rarely exposed to different thoughts. And this is not entirely accidental. Cultural Marxism (Gramsci and Frankfurt School) want to create a cultural hegemony of the left, making sure that alternative discourse is thrown out of the acceptable range of ideas.

The result is a lot of Pauline Kaels.

A short note on the India-Pakistan thaw

Over the past couple of months, both India and Pakistan have been trying to lower the temperatures through some good gestures and reconciliatory statements, while both sides have reiterated their commitment to amicably resolve the issue of harassment of diplomats. India and Pakistan have also agreed to some humanitarian gestures with regard to prisoners languishing, on both sides, in jails.

There have also been indicators that the two neighbors are keen to revive economic ties and give a boost to bilateral trade, which is way below potential.

In the month of March, Indian High Commissioner to Pakistan, Ajay Bisaria, while addressing the Lahore Chamber of Commerce and Industry, spoke about the need for greater bilateral trade:

We should not talk about negative and positive lists rather we should work on the windows of opportunities. At present, over $5 billion trade is being done through third country but after removal of non-tariff barriers, liberalisation of visa and normalisation of mutual relations, the two-way trade could touch a high $30 billion.

Bisaria, while addressing the Employers Federation of Pakistan and the South Asian Forum of Employers, reiterated the need to increase the level of trade, and also said that if South Korea and North Korea could work towards resolving their serious differences, there is no reason why India and Pakistan could not.

Interestingly, in the month of April, Pakistan High Commissioner to India, Sohail Mahmood, met with the Chief Minister of Punjab (India), Captain Amarinder Singh, and discussed possible areas where both countries can cooperate. Not only was there an emphasis on reviving people-to-people contact between the two Punjab’s, but also to give a boost to trade through the Wagah-Attari land route. In the two phases (2004-2007 and then 2011-2014), when India and Pakistan made headway in terms of connectivity and economic linkages, the two Punjab’s played a pivotal role. The area of Punjab, of course, was split by the British Partition of 1947.

Change in mindset of Pakistan Army and RUSI report

What is interesting is a commentary, authored by Kamal Alam, published by premier British think-tank RUSI (Royal United Services Institution), which emphatically argues that there is a paradigm shift in the mindset of the Pakistani military, under the leadership of current Chief of Army Staff, Qamar Ahmed Bajwa, and a genuine realization for the need to move away from a zero-sum approach.

Alam’s commentary refers to an address by Bajwa last year, where he made a case for India being part of the $60 billion China Pakistan Economic Corridor (CPEC). The Pakistan army chief stated:

The Pakistan army is now no more insecure and feels confident of its future and that he welcomes Indian participation in Pakistan’s flagship infrastructure project, the China Pakistan Economic Corridor (CPEC).

Alam, to strengthen his argument, also points to some other instances, such as Bajwa’s speech at the passing-out parade of cadets at the Pakistan Military Academy in Kakul, where the Pakistan Army Chief referred to the necessity of dialogue between both countries, and an invite to the Indian Military attache, Sanjay Vishwasrao, and other senior diplomats posted at the Indian High Commission, for the military parade to mark Pakistan’s National Day. The diplomats attended the parade alongside Vishwasrao.

Another interesting development flagged by Alam is the military drill (conducted under the umbrella of Shanghai Cooperation Organisation) in September 2018, where both India and Pakistan along with other member nations will participate.

Alam’s commentary has quoted a number of other high level members of the Pakistan army who have spoken in favor of mending ties, and also argues that a change in the Pakistan army’s mindset has been visible since 2013.

In December 2016, Pakistan’s Southern Command Lt General, Amir Riaz, while speaking at an awards distribution ceremony at Balochistan FC Headquarters, invited India to join CPEC and ‘share the fruits of future development by shelving the anti-Pakistan activities and subversion.’ Riaz, as Director General of Military Operations in 2013, had met his counterpart at Wagah to reduce tensions across the Line of Control.

According to Alam, Major General Ahmed Hayat, the Director-General-Analysis of the Inter-Services-Intelligence for Pakistan, had authored, in 2013, what was dubbed as the India Plan. While agreeing that engagement and not conflict was the answer, the report sought to identify the appropriate time to reach out to India from a position of strength.

Points of contention moving forward

While Alam’s report has generated a lot of interest, a few facts need to be borne.

First, the recent meeting between Modi and Xi, where China, without making a mention of Pakistan, committed to flag terrorism as a key concern. In recent months, China has given some indicators that it may be willing to re-think its approach towards terrorism emanating from Pakistan. Pakistan is now likely to be put on the watchlist of an international financial watchdog, Financial Action Task Force (FATF). Beijing was initially opposed to this move, but relented after India lent its support to Beijing for the Vice Presidency of FATF.

China has of course been pitching for a better relationship between New Delhi and Islamabad for some time, keeping in mind its own economic interests, and has even asked New Delhi to be part of CPEC. New Delhi has been steadfast in its opposition to China’s One Belt One Road (OBOR) Initiative, given the fact that CPEC passes through disputed territory, but with the changing dynamics in the New Delhi-Beijing relationship, it is likely that Bajwa and the upper echelons of India’s diplomatic corps are making the right noises to look good to the international community, especially China.

Second, the incumbent PML-N civilian government in Pakistan, which has been completely overwhelmed in the past two years with the weakening of former Prime Minister Nawaz Sharif. The fall of Sharif began with the joint Tahir Ul Qadri-Imran Khan protests (backed by the Pakistan army) in 2014, and ever since the Panama Case leaks in April 2016, things have spiraled downhill for Sharif. In July 2017, Nawaz Sharif was disqualified by the Supreme Court from holding any public office, and had to resign as Prime Minister of Pakistan. In April 2018, he was disqualified from holding any position for life.

Sharif, who has on more than one occasion dubbed political rival and former cricket star Imran Khan, Chairman of Pakistan-Tehreek-E-Insaaf (PTI) as ‘laadla’ (favorite) of the army, has also argued that the judiciary and military are jointly conspiring against him. One of the points of divergence between Sharif and the army were relations with India, as Sharif has always batted for better relations with New Delhi.

There is absolutely no doubt that Imran’s relations with the army have improved considerably according to some. Imran has also publicly praised the army chief, recently calling Bajwa “probably the most pro-democratic man [Pakistan] has ever seen.” There is a good chance that PTI, backed by the military establishment, may win in the upcoming elections of 2018. The commentary, and Bajwa’s statements, could be a message to India that New Delhi will have to engage with the military in case PTI were to come to power.

In this context, Bajwa has been trying to cultivate the image of a pragmatist not opposed to peace. A few months ago in an article written for The News, the prominent left-leaning Pakistani journalist Sohail Warraich wrote:

The Bajwa doctrine stands for regional peace and, like China, wants to make peace with India while keeping our differences on core issues. The doctrine is ready for peaceful negotiations but without compromising on the Kashmir issue. The doctrine is fully aware of the Chinese advice to Pakistan that instead of war, other peaceful measure be negotiated for Kashmir issue.

Conclusion

It is important for New Delhi to wait and watch, while engaging with the business community and Pakistan’s vibrant civil society is absolutely essential. Not much should be read into Bajwa’s remarks. They should be taken note of, and not dismissed, but it is a bit premature to be optimistic. After all, the army has been backing the Milli Muslim League (MML), a civil front of the JuD, headed by the Mumbai terror attack mastermind, Hafiz Saeed.

It will also be interesting to see the ultimate outcome of the upcoming election in July.

New Delhi needs to deal with whoever is in power in Pakistan, and the army is an important power center there. A civilian government (possibly PTI) beholden to the establishment will not address India’s concerns the way a firm civilian government which has the fervent backing of the people (this may not happen in the imminent future, but is a reality) would. The Pakistan Army Chief’s words would have had more meaning if he had backed Nawaz Sharif’s attempts towards improving ties with India, and not joined hands with the judiciary to plot his downfall.

RCH, and a warm welcome

My topic over at RealClearHistory today is the Mexican-American War. I lay out a general background on all the players, hoping that a primer will do readers there some good. An excerpt:

Texas. In 1821, the newly-established Mexican government was having severe trouble with the Comanche in the area and invited Americans to settle the region. This pushed the Comanche west and helped weaken them, but it also laid the groundwork for a Texian secession from Mexico. Texas declared independence from Mexico in 1835, but of course nobody in Mexico City recognized this declaration. Texas and Mexico fought for more than a decade before representatives from the Lone Star Republic finally succeeded in lobbying Washington to annex Texas and incorporate it into the American federation. It’s worth noting here that immigration was not the cause of Texian secession from Mexico, as some nativists are apt to claim today. Texas was, like Yucatán, tired of being governed poorly from Mexico City. The anti-immigration argument would be much stronger if Mexico wasn’t facing revolts and secessions everywhere it turned.

Please, read the rest. I’m going to, as I promise in the piece, delve into slavery and the war next Tuesday, but there’s also other topics to think about. Secession comes to mind for me, as I can’t help but ask what could have been if the Senate had not rejected Yucatán’s bid for annexation. Also, is annexation the missing piece of the puzzle when it comes to not only “exit” in libertarian circles, but entrance as well?

Speaking of entrances, I’d like to officially, warmly welcome Mary Lucia Darst to the consortium and highlight her first thoughts with NOL: “The Sad Retreat.” I’m not going to spoil it for you, so if you haven’t read it yet, now would be a good time (don’t forget to say ‘hi’ while you’re at it). Here is her bio. I am extremely excited to read what she shares here over the next few years.

Communism / socialism is rubbish – both in theory and in practice.

I’m getting tired of reading and listening to so-called libertarian or conservative people saying that “in theory socialism is beautiful.” No, it’s not. In theory, socialism can be summed up as “the end of private property.” This is how Karl Marx summed it up. The genius of Ludwig von Mises is precisely in the fact that he did not have to wait until 1989, when the Berlin Wall fell, to realize that this does not make sense. When the Soviet Union was still a young country sweeping intellectuals around the world, von Mises made the following remark: without private property, there is no supply and demand. Without supply and demand, there is no price formation. Without prices the economic calculation is impossible. And that is precisely what happened in the USSR and happens in countries that follow the path of socialism: without the compass of free market prices, governors can not make decisions about allocating resources. Socialism is the death of rationality in economics. Socialism is rubbish in practice because before that it’s rubbish in theory. Please stop talking nonsense. The free market, on the other hand, is beautiful in practice because first of all, it is beautiful in theory.

The Indo-Pacific narrative, US insularity, and China’s increasing influence

Over the past year, there has been a growing interest with regard to the vision of a Free and Fair ‘Indo-Pacific’. While this term has been used in recent years by policy makers from the US and Australia and has been pushed forward by a number of strategic analysts, a number of developments since last year have resulted in this narrative gaining some sort of traction.

US President Donald Trump, during his visit to South East Asia and East Asia in November 2017, used this term on more than one occasion, much to the discomfort of China (which prefers ‘Asia-Pacific’). On the eve of his visit to India last year, Former Secretary of State Richard Tillerson, while speaking at the Centre for Strategic and International Studies (CSIS, Washington DC), explicitly mentioned a larger role for India in the Indo-Pacific, and the need for India and US to work jointly. Said Tillerson:

The world’s center of gravity is shifting to the heart of the Indo-Pacific. The U.S. and India, with our shared goals of peace, security, freedom of navigation, and a free and open architecture, must serve as the Eastern and Western beacons of the Indo-Pacific, as the port and starboard lights between which the region can reach its greatest and best potential.

In November 2017, the Quad grouping (Australia, US, India, and Japan) met on the sidelines of the ASEAN Summit pitching not just for a rules based order, but also in favour of enhancing connectivity. Commenting on the meeting, an official statement from the US Department of State had said that the discussions were important and members of the Quad were “committed to deepening cooperation, which rests on a foundation of shared democratic values and principles.”

Earlier, too, the four countries had coalesced together, but as a consequence of Chinese pressure, the grouping could not last.

There have also been discussions of coming up with connectivity projects. This was discussed during Australian Prime Minister Malcolm Turnbull’s meeting with Donald Trump in February 2018, and between representatives of Japan, the US, and India in April 2018 when the three sides met in New Delhi, committing themselves to furthering connectivity between the countries.

China Factor

While members of the Quad have continuously denied that the Indo-Pacific concept is specifically targeted at China, it would be naïve to believe this assertion. In fact, during a visit to Australia, French President Emmanuel Macron, who is trying to position himself as one of the frontline protagonists of liberalism in the Western world, spoke about the need for India, Australia, and France to work together in order to ensure a rules-based order. Commenting on the need for India, France and Australia to jointly work for a rules based order, and checking hegemony (alluding to China), the French President stated:

What’s important is to preserve rules-based development in the region… and to preserve necessary balances in the region….It’s important with this new context not to have any hegemony.

Evolving relationship between China-India and China-Japan

While it is good to talk about a rules-based order, and a Free and Fair Indo-Pacific, it is important for members to do a rational appraisal of ensuring that the Indo-Pacific narrative remains relevant, especially in the context of two important events. First, the reset taking place between India-China, and second, the thaw between Japan-China.

This has already resulted in some very interesting developments.

First, Australia was kept out of the Malabar exercises last June (Japan, US, and India participated). Australia is a member of the Quad alliance and has been one of the vocal protagonists of the Free and Fair Indo-Pacific narrative. Canberra has also expressed vocally the need for a greater role for India in the Indo-Pacific. Australia has on more than one occasion expressed its desire to participate in the Malabar Exercises.

Many argue that the decision to exclude Australia from the exercises is a consequence of the significant shift taking place in India-China relations, though India has been dismissive of this argument.

Second, Japan has expressed its openness to participate in China’s Belt and Road Initiative (BRI) as long as international norms are met. During meetings between the Chinese and Japanese Foreign Ministers in April 2018, the Chinese Foreign Minister, Wang Yi, said such a possibility was discussed. Japanese Prime Minister Shinzo Abe, who is seeking to improve ties with China, recently reiterated the potential of the Belt and Road Initiative in giving a boost to the regional economy.

It would be pertinent to point out that a number of Japanese companies are already participating in countries which are part of the Belt and Road Initiative.

Interestingly, the Japanese-led Asian Development Bank (ADB), which has been funding many projects (spearheaded by Japan) projected to be components of the Indo-Pacific strategy, has even gone to the extent of stating that it does not perceive the Chinese-led Asian Infrastructure Investment Bank (AIIB) as a threat. Commenting on the possibility of cooperation between ADB and AIIB, the President of ADB, Takehiko Nakao, stated that “AIIB, it’s not the kind of threat to us. We can cooperate with AIIB because we need larger investment in Asia and we can collaborate.”

Where does the Indo-Pacific move from here?

In terms of strategic issues, especially ensuring that China is not an unfettered influence in the region, the narrative is relevant. The Chinese approach towards Indo-Pacific and Quad as being mere froth is an exaggeration. Addressing a press conference on the sidelines of the National People’s Congress, China’s Foreign Minister, Mr. Wang, had stated that there was “no shortage of headline grabbing ideas” but they were “like the foam on the sea” that “gets attention but will soon dissipate.”

Similarly, in terms of promoting democratic values it certainly makes sense. The real problem is in terms of connectivity projects (beyond India-Japan, none of the members of the Quad have elaborated a coherent vision for connectivity). The US has spoken about an Indo-Pacific Economic Corridor, but given the Trump Administration’s approach, it remains to be seen to what extent this can be taken further. While Australia has been steadfast in its opposition to China’s growing economic clout, it has its limitations, especially in terms of funding any concrete connectivity projects. Possible regions where Australia could play a key role should be identified.

Conclusion

It is fine to speak in terms of certain common values, but to assume that China can be the only glue is a bit of a stretch, especially given the fact that it has strong economic ties with key countries pushing ahead the Indo-Pacific vision. It is also important for the Indo-Pacific to come up with a cohesive connectivity plan. Currently, the narrative seems to be driven excessively by strong bilateral relationships, and the individual vision of leaders.

Beijing and the India-Pakistan conundrum

During the course of the Shanghai Cooperation Organization (SCO) meeting in China, and days before Indian Prime Minister Narendra Modi arrived in China for his summit with Chinese President Xi Jinping, an editorial in Pakistan’s premier English-language daily (Daily Times) titled ‘China’s re-assurance on CPEC‘ made an interesting point:

If anything Beijing has been asking Islamabad to engage with New Delhi and keep tensions to a minimum. Such an environment is also conducive to timely completion of various projects under CPEC [China-Pakistan Economic Corridor] and transforming South and Western Asia into a high economic growth zone. Keeping the economy first is a lesson that our state has yet to learn from its big brother in the hood.

Zardari’s recommendation in 2012

Interestingly, during his meeting with former Indian Prime Minister Dr Manmohan Singh, in April 2012, former Pakistan President Asif Ali Zardari (Pakistan People’s Party — PPP) had also stated that Pakistan and India should seek to follow the Pakistan-China model of engagement. Zardari meant that, like India and China, India and Pakistan too should follow an incremental approach, with more frequent high level interactions and a heavy focus on economic cooperation.

It might be mentioned that between 2012 and 2013 some important leaps were made in the economic sphere between both countries, with the most noteworthy development being the setting up of the Integrated Check Post (ICP) at Attari (Amritsar, India). The ICP’s motive was to accelerate bilateral trade through the only land crossing (Attari-Wagah) between India and Pakistan. During this period, a number of high level delegations interacted, including the Commerce Ministers of both countries.

Pakistan also seemed prepared to grant India MFN status, but a change of government (along with domestic opposition from certain business lobbies as well as hardliners) in Islamabad (2013) and then New Delhi (2014) meant that this decision could not go ahead. Since then, relations have been tense, and there has been no opportunity to make any progress on this.

Tensions in the past 4 years: CPEC and terrorism emanating from Pakistan Continue reading →

Explaining current Brazilian politics to known-Brazilians and why I believe this is time for optimism

It seems that many observers believe that Brazil’s current political situation is one of instability and uncertainty. Since the mid-1990s the national political scene has been dominated by two parties: the Worker’s Party (Partido dos Trabalhadores, PT, in Portuguese) and PSDB. Now, with the main leader of the PT imprisoned – former president Lula da Silva – the PSDB also seems to have lost its rationale. It is clear that this party never had faithful voters, only an anti-PT mass who saw in it the only viable alternative. Given these factors, it is true that a political cycle that began in the 1990s is coming to an end, but far from being a moment of uncertainty and pessimism, this may be the most fruitful moment in the country’s history, as it seems that finally classical liberalism is being vindicated in Brazil.

Brazil began its political history as a semi-parliamentary monarchy. As one observer of the time put it, the country had a “backward parliamentarism”: instead of parliament controlling the monarch, it was the emperor who controlled parliament. Moreover, the Brazilian economy was extremely based on slavery. In theory, Brazil was politically and economically a liberal country. In practice, it was politically and economically a country controlled by oligarchies.

With the proclamation of the republic in 1889, little changed. The country continued to be theoretically a liberal country, with a constitution strongly influenced by the North American one and a tendency to industrialization. In practice, however, Brazil continued to be politically and economically dominated by oligarchic interests.

The republic instituted in 1889 was overthrown in 1930 by Getúlio Vargas. Vargas was president from 1930 to 1945, and his political circle continued to dominate the country until 1964. Once again, political language was often liberal, but in practice the country was dominated by sectorial interests.

Vargas committed suicide in 1954, and his political successors failed to account for the instability the country went through after World War II. The Soviet Union had been trying to infiltrate Brazil since the 1920s, and this was intensified with the Cold War. The communist influence, coupled with the megalomaniacal administrative inability of Vargas and his successors, led the country to such an instability that the population in weight clamored for the military to seize power in 1964.

The military that governed Brazil between 1964 and 1985 were influenced mainly by positivism. In simple terms, they were convinced they could run the country like a barracks. For them, the motto “order and progress” written on the Brazilian flag was taken very literally. One great irony in this is that Auguste Comte’s positivism and Karl Marx’s communism are almost twin brothers, products of the same anti-liberal mentality of the mid-19th century. The result was that Brazilian economic policy for much of the military period was not so different from that of the Soviet Union at many points in its history: based on central planning, this policy produced spectacular immediate results (the period of the “Brazilian miracle” in the early 1970s), but also resulted in the economic catastrophe of the 1980s.

However, the worst consequence of the military governments was not in the economy but in the political culture. The military fought against communism in a superficial way, overpowering only the guerrillas and terrorist groups that engaged in armed struggle. But in the meantime, many communists turned to cultural warfare, joining schools, universities, newsrooms, and even churches. The result is that Brazilian intellectual life was taken over by communism.

Fernando Henrique Cardoso, elected president in 1994, is an important Brazilian intellectual. Although not an orthodox Marxist, his lineup is clearly left-wing. The difference between FHC (as he is called) and a good part of the Brazilian left (represented mainly by the PT) is that he, like Tony Blair in England and Bill Clinton in the US, opted for a third way between economic liberalism and more explicit socialism. In other words, FHC understood, along with leading PSDB leaders, that the Washington Consensus is called a consensus for good reason: there is a set of economic truths (pejoratively called neo-liberals) that are no longer the subject of debate. FHC followed these ideas, but he was heavily opposed by the PT for this.

Since the founding of the PT, in the late 1970s, Lula’s speech was quite radical, explicitly wishing to transform Brazil into a large Cuba. But Lula himself surrendered to the Washington Consensus in the early 2000s, and only then was he able to be elected president. Once in office, however, Lula commanded one of the greatest corruption scandals in world history. In addition, his historical links to the left were never erased. Although in his first term economic policy was largely liberal, this trend changed in his second term and in the presidency of his successor, Dilma Rousseff.

Today Brazil is still living in an economically difficult period, but an ironic result of more than a decade of left-wing government (especially the PT) is the strengthening of conservative and libertarian groups in Brazil. In the elections from 2002 to 2014 it was virtually impossible to identify candidates clearly along these lines. In this year’s election, we expected several candidates to explicitly identify themselves as right-wing. Jair Bolsonaro, the favorite in contention, is not historically a friend of the free market, but his more recent statements demonstrate that more and more he leans in this direction.

It is possible that in 2018 Brazil will not yet elect an explicitly libertarian president. But even so, the economic transformations initiated by FHC seem now to be vindicated. Only with the strengthening of the Internet did Brazilians have real access to conservative and libertarian ideas. With that, one of the most important political phenomena in Brazil in the last decade is the discovery of these ideas mainly by young people, and it is these young people who now cry for a candidate who defends their ideas. Bolsonaro seems to be the closest to this, although there are others willing to defend similar economic policy. After more than a decade of governments on the left, it seems that Brazil is finally going through a well-deserved right turn.