Pakistan-China ties and CPEC

Tridivesh Singh Maini Current Events, Politics , , , , , , ,

Abdul Razak Dawood, Prime Minister Imran Khan’s Adviser on Commerce, Textile, Industry & Production and Investment, told the Financial Times that the previous Pakistan Muslim League (Nawaz ) government did not get a good deal for Pakistan in CPEC (China Pakistan Economic Corridor), and that Pakistan has lost out as a result of poor negotiations.

Dawood also made the point that some of the CPEC projects could be put on hold for a year, and CPEC can be stretched up to five years. Said Dawood: ‘Perhaps we can stretch CPEC out over another five years or so.’

Interestingly, during Chinese Foreign Minister Wang Yi’s  recent Pakistan visit, Pakistan’s Foreign Minister, Shah Mehmood Qureshi, assured the former that Pakistan would accord high priority to CPEC — which was of immense economic and strategic importance for Pakistan. Qureshi also stated that projects would be implemented at the earliest outset. Even the normally outspoken Pakistan Finance Minister, Asad Umar, was cautious, and categorically said that ‘We don’t intend to handle this process like Mahathir.’ Imran Khan also met with Wang Yi, and a statement from the Pakistani side read as follows:

‘The Prime Minister reiterated that the Government is committed to the implementation of the CPEC.’

Wang Yi on his part emphasized on the fact that CPEC was not responsible for Pakistan’s debts. He also stated that Beijing was willing to re-negotiate a Free Trade Agreement which, according to many in Pakistan, was heavily skewed in favour of China and has faced domestic opposition.

During the course of a meeting between the Planning, Development and Reforms Commission of Pakistan and the National Development and Reforms Commission (NDRC) of China, two interesting aspects were added to the existing agreement. The first, that third countries would be allowed to invest in the upcoming 9 Special Economic Zones (SEZs) of CPEC. The Chinese delegation during the meeting is supposed to have conveyed the point that it was open to investment from countries which were friendly to both Pakistan and China to invest in the SEZs. Some of the potential countries discussed were Turkey, Russia, and Saudi Arabia

Second, ‘social sector’ schemes and regional development schemes were added to the existing CPEC projects. Social sector schemes include drinking water, health, education, and technical training. The inclusion of these areas was done keeping in mind the priorities of the current government.

Is a significant re-think towards CPEC possible?

There is no doubt that Islamabad’s dependence upon China would have increased as a consequence of its current economic situation and it’s deteriorating ties with Washington (days before US Secretary of State Mike Pompeo landed in Islamabad, military aid to the tune of $300 million was withdrawn). Yet, some re-think vis-à-vis CPEC can not be ruled out because a number of Pakistani politicians have expressed discomfort with the lack of transparency regarding the project.

Transparency with regard to the CPEC project

When in opposition, Imran had himself spoken about the need for greater transparency and openness with regard to the project. Before the elections in July 2018, many analysts argued that the Chinese would be far more comfortable with parties like the PPP and the PML-N as opposed to Imran Khan.

The protests of Khan and his party (PTI) against the previous PML-N government were also viewed with skepticism by the Chinese who believed that these protests would be detrimental to the progress of the project. Khan during his meeting, in 2016, with the Chinese Envoy to Pakistan tried to address the apprehensions of the Chinese by saying he was all for the project.

One of the objections of Pakistani politicians from Non-Punjabi provinces (across parties), as well as analysts, was that the project was Punjab Centric. In November 2017, members from the Senate, including the then-ruling party, PML-N, had spoken about the lack of transparency of CPEC, and had also alluded to the fact that China was benefitting at Pakistan’s expense.

Apart from domestic politics, the firm stance taken by Malaysian Prime Minister Mahathir Mohammad with regard to some Chinese projects (the Malaysian PM scrapped projects worth $20 billion) is also important and has forced a rethink in Pakistan . An editorial in Dawn titled ‘Rearranging CPEC’ also cited Mahathir’s stance against Chinese projects. While it is unlikely that Pakistan may follow suit as was stated by the Finance Minister, Asad Umar, as well as by Abdul Razak Dawood himself (Dawood in fact had to clarify that his remarks with regard to CPEC had been quoted out of context), there will be groups in Pakistan (especially members of the business community) who could nudge the current government towards tweaking the CPEC agreement further as well as resetting the Pakistan-China economic relationship to some extent.

China itself can not afford to ignore Mahathir’s stance, as well as his statement about the rise of a ‘new colonialism’. The address of Chinese President Xi Jinping at the Africa-China Summit, as well as Wang Yi’s statements during his Pakistan visit, are clear indicators that China is not taking Mahathir’s statements lightly. Whether Imran Khan can be a Mahathir of course is a different issue.

Lack of options and GHQ

While there may be certain personalities within the current government who are making the right noises with regard to the CPEC project, Islamabad’s economic situation has reduced its options.

Apart from this, the Pakistan army (which runs the show when it comes to complex foreign policy issues) has robust ties with Beijing, and will prevent any drastic changes to the CPEC agreement. During his meeting with Wang Yi, Pakistan’s Chief of Army Staff, General Qamar Javed Bajwa, assured the visiting Chinese Minister of full support. The Chinese also had a robust relationship with former Pakistan Army Chief, Raheel Sharif.

A re-think on CPEC, as well as Pakistan-China economic relations (highly unlikely in the short run), would benefit not just Pakistan, but could have broader ramifications, and may compel more countries to rethink their ties with China.

Mahathir Mohammad deserves credit for highlighting the shortcoming of China’s infrastructural projects as well as its economic ties with certain countries. This debate is not likely to die down soon, though not every country is in a position to take a bold stand like Mahathir. Imran Khan, in private, may be supporting Mahathir’s approach towards China, but can not afford to do so publicly.

RCH: The United States and the Middle East

Brandon Christensen History, Links , , , , ,

My latest for RealClearHistory is all about ‘Murica and the Mideast. An excerpt:

2. The Iranian Regime. During the Cold War, the U.S. government supported a number of regimes that were illiberal in the name of fighting communism. The necessity of such tactics are beyond the scope of this article, but the Pahlavi “dynasty” of Persia was one such illiberal regime. The Pahlavis were anti-Communist and pro-Western, which meant that women could dress how they pleased and go to university, and that religion was pushed to the sidelines of political life. This made the Pahlavi’s enemies of not only the socialist reformers of Persia, but also the majority of the conservative religious clergy. One Pahlavi was ousted by a joint British-Soviet invasion in 1925, and his son was deposed in the 1979 revolution that turned Persia into Iran. After the British-Soviet invasion, the United States became heavily involved in Persia and supported the secular autocrat almost blindly, which is why the anti-Shah revolution of 1979 was also anti-American.

Please, read the rest.

Nightcap

Brandon Christensen Links , , ,
  1. The criminal as entrepreneur Cedric Muhammad, American Affairs
  2. Did the British Empire depend on separating families? Sumit Guha, Not Even Past
  3. What does nationalism mean in a contested state? Daniel Solomon, New Republic
  4. ‘In the long run we are all dead’ Adam Tooze, London Review of Books

Nightcap

Brandon Christensen Links , , ,
  1. 9/11: Lessons Irfan Khawaja, Policy of Truth
  2. Thwarting Trump, or the voters? Ross Douthat, NY Times
  3. The role of religion in Anglophone democracies Bruce Clark, Erasmus
  4. A tale of two Asia policies Zack Cooper, War on the Rocks

Rule of Law: the case of open texture of language and complexity

Federico Sosa Valle Law , , , , , , , , , , ,

This article by Matt McManus (@MattPolProff) recently published at Quillette made me remember H.L.A. Hart’s theory of law and the problems derived from the open texture of language, a concept borrowed by him from Friedrich Waismann, an Austrian Mathematician and philosopher of the Vienna Circle. Many authors would rather distinguish “open texture” from vagueness: being the latter a proper linguistic matter, the former is related to the dynamic of the experience. As Kyle Wallace summarized the problem: “certain expressions are open textured simply because there is always the possibility that in some new experience we may be uncertain whether or not the new expression is applicable.”

However, Brian Bix, in his “H.L.A. Hart and the ‘open texture’ of language,” argues that, despite the concept of “open texture” being a loan from Waismann’s philosophy, the use gave to the term by Hart is not derogatory at all. With respect to Hart’s point of view, the “open texture” of the law is rather an advantage, since it endows the judges with a discretionary power to adjust the text of the law to the changing experience.

Concerning individual liberty, the laudatory qualification of the open texture of the law made by Hart and Bix might be shared by the jurists of the Common Law tradition, but it hardly would be accepted by anyone from the Civil Law System. According to the former, every discretionary power enabled to the judges helps to prevent the political power from menacing individual liberties, while, following the latter, the written word of the law, passed by a legislative assembly according to constitutional proceedings, is the main guarantee of individual rights.

But the subject of the open texture of the language of the law acquires a new dimension when it is related to the coordination problem derived from the limits to knowledge in society. As it was distinguished by F. A. Hayek in the last chapter of Sensory Order, we could talk about two types of limits to knowledge: the relative and the absolute. The relative limit to knowledge depends upon the sharpness of our instruments used to gather information, whereas the absolute limit to knowledge is sealed by the increasing degrees of abstraction that constitute every classification system. Since every new experience demands the rearrangement of the current system of classification we use to order our perception of reality, the description of this feedback process requires a supplementary system of classification of a higher level of complexity. The progress of the subject of knowledge into higher levels of abstraction reaches an unconquerable limit when he is tasked with the full study of himself.

Thus, we could ascertain that the judiciary function would be enough to fulfill the problems that could arise from the open texture of law, since the judge pronounces the content of the law not in general terms, but in concrete definitions in order to solve a case. In this labour, the judge not only applies the positive law, but he might “discover” abstract principles that become relevant in order to the given new experiences that begot the controversy over the content of the law he is due to solve. This function of “immanent critique” of the positive law by the judiciary system is well discussed by F. A. Hayek in the fifth chapter of his Law, Legislation and Liberty. Since the judiciary function solves in every concrete case the coordination problem derived from the fragmentation of knowledge in society, the open texture of the law does not make it opaque to the citizens.

That notwithstanding, the open texture of the law remains as a systemic limit to the legislative assemblies to define the whole content of the law. Thus, since the whole content of the law can only be achieved in a given concrete case by a judge solving a particular controversy, every central planner would have to accomplish his model of society not through decisions based on principles, but on expediency. Central planning and rule of law will be always set to collide. In this sense, the concept of open texture of the law might work as a powerful argument for the impossibility of every central planning to be performed, sooner or later, under the rule of law.

Nightcap

Brandon Christensen Links , , ,
  1. Nationalism, Israel, and Hitler Alberto Mingardi, EconLog
  2. How Russia became Russia Harish Yagneshwar, Pragati
  3. Europe’s deep localism and populism Angelo Codevilla, Hoover
  4. Steve Bannon in Bosnia Krithika Varagur, NY Review of Books

Eye Candy: the states in India’s federation

Brandon Christensen Politics , , , , , , ,
NOL India's states
Click here to zoom

Stay tuned for more on India from a sub-state perspective. I’m going to find the GDP (PPP) per capitas of these states. I’m going to find their population densities. I’m going to find their literacy rates and their life expectancy rates. I’m going to find out much more about India over the coming 12 to 16 months.

In the meantime, here are all of NOL‘s posts from Tridivesh, a resident of New Delhi. And here are all of NOL‘s posts from Shree, a resident of New York.

Nightcap

Brandon Christensen Links , , ,
  1. Why don’t Japanese and Taiwanese militaries talk to each other? Katsuya Yamamoto, National Interest
  2. The fraud of foreign aid Kenan Malik, Guardian
  3. What V. S. Naipaul taught me about posturing P. Kishore Saval, American Affairs
  4. India’s stealth war on liberal democracy Shikha Dalmia, the Week

Nightcap

Brandon Christensen Links , , ,
  1. The Cause and Mechanisms of American De-Industrialization John Mueller, Law & Liberty
  2. Against moral crusades Chris Dillow, Stumbling & Mumbling
  3. A test with Imran Khan Nitin Pai, Pragati Express
  4. The De-Industrialization of the U.S.: A String of Enlightening Fallacies Jacques Delacroix, NOL

Jair Bolsonaro suffers a knife attack.

Bruno Gonçalves Rosi Current Events, Politics , , , , , , ,

Jair Bolsonaro, Brazil’s presidential candidate and leader in opinion polls, suffers a knife attack. According to close sources, his condition is grave. The aggressor is a militant of the Workers Party of Lula da Silva. Bolsonaro’s supporters resisted the temptation to lynch and directed the attacker to the police. Dilma Rousseff stated that Bolsonaro was the victim of his own hate speech. It is the left blaming the victim and justifying the aggressor. This is the “peace and love” left.

Nightcap

Brandon Christensen Links , , ,
  1. Don’t say that to me Stephen Cox, Liberty Unbound
  2. Misconceptions about religiously radicalized women Chelsea Daymon, War on the Rocks
  3. Ukrainian autocephaly Bruce Clark, Erasmus
  4. Why liberalism’s critics fail Deirdre McCloskey, Modern Age

The Incomplete Counterfactual Fallacy

Rick Weber Economics, Liberty, Politics , , , ,

Mariana Mazzucato has some interesting ideas, but her basic thesis (which I’m guessing based only on her recent Freakonomics interview) forgets a simple fact: had the government not made GPS, not only would we not have GPS, resources would have been allocated somewhere else.

In other words, she’s right that without government involvement we’d miss all sorts of valuable things like the basic research it turns out government has financed, physical infrastructure (no matter how neglected), GPS, the specific form the Internet we got, etc., etc.

But that’s only half the story. What happens if DARPA closes shop just before starting on GPS? Those engineers end up somewhere else, the money for the project goes somewhere else, the steel and titanium for the satellites they would have built end up in some other shop.

If we could know that nothing else would have happened at that point, then GPS is a free lunch–some bold committee scooped up a handful of clay, handed it to brilliant engineers, and created something from nothing.

More likely some of those engineers would have made dozens of other projects a little bit better, and one or two of them might even have, through some series of unpredictable events, ended up creating some totally different innovation that would have put us on to an entirely different path.

Which is the better path? There’s no way to know. The people on that other path exist in a completely different paradigm from our own. It’s comparing meta-apples with meta-oranges. We are where we are and we ought to appreciate all the costs and benefits of the system we’ve inherited. I think Mazzucato is right that many of us have underrated the government. (Certainly 23-year-old-Rick was guilty of the over-complete counterfactual fallacy.)

She makes a compelling argument that Solyndra doesn’t look like such a boondoggle when you take the wider view we would expect of the smallest venture capital investor. But if it’s true that pointing at government failures is invalid, then so is pointing at government success.

What’s important is improving the future performance of our current institutional mess. To do that, I think we’re better off backing away from her broad claims and focusing on her more sensible (and jarring) arguments about how the current system encourages destructive rent seeking through intellectual property protection of basic research that might be better left in the public domain.

A shift in the Great Conversation

Brandon Christensen Culture, Current Events , , , , ,

I was alerted to this piece in n+1, a left-wing publication, on the decline of reading and writing in Western societies thanks to the newfound power of Twitter and the prominence this power gives to the op-ed (h/t John Holbo over at Crooked Timber).

There is one really good point in an otherwise predictable piece, but first I’d like to highlight why I continue to maintain that the Left is still the reactionary ideology of our times. The editorial’s complaints about technology (Twitter) giving a voice to radical factions (right-wingers like Andrew Sullivan and the Fox News brigade) are just the same ol’ excuses served up by the Leftists of yore to censor views they don’t like. It’s ho-hum all the way down.

At any rate, here is the part that really grabbed me:

Back then, we could not have imagined feeling nostalgic for the blogosphere, a term we mocked for years until we found it charming and utopian. Blogs felt like gatherings of the like-minded, or at least the not completely random. Even those who stridently disagreed shared some basic premises and context — why else would they be spending time in the comments section of a blog that looked like 1996? Today’s internet, by contrast, is arbitrary and charmless.

I find myself in aesthetic agreement with these reactionaries, again. I’ve always found myself more drawn to the tastes of leftists than conservatives, whose tastes are often too crass for me. (A dead animal’s head on your wall? Really?) And today, I find the internet arbitrary and charmless. Op-eds, and their charmless cousin, the jargon-laden academic paper, are everywhere.

This is part of the reason why I continue to blog. I know that blogging is becoming less and less popular. I understand that clicks and traffic and attention are more important to most people who take time out of their lives to write. I get it.

The intimacy that a blog affords, though, is too good to pass up, especially for someone like me. I like reading voices from Argentina like Federico’s. I enjoy Jacques’ posts on sex and politics. (A true Frenchman, that one, no matter how hard he tries to be otherwise.) Rick, the Canadian-turned-American living in New York, always manages to bring a smile to my face. I like being able to read Michelangelo, an authentic voice from Los Angeles, the crown jewel of the American Empire.

The conversational nature of the blog is not in vogue right now, but that doesn’t mean it’s not important. Indeed, if anything, it means that the conversations that continue to play out over what’s left of the blogosphere will be far more important to far more people in far more places than the latest Twitterstorm. Twitter is an incredibly useful place for mining knowledge, but it’s worthless for shaping that knowledge into something useful and precious for today and tomorrow. Only writing can do that.

Op-eds aren’t going anywhere. There’s no use trying to delegitimize them, or ban them. You can choose to ignore them. That’s what I do. Instead of reading an op-ed, I continue to browse the blogosphere, where conversation about ideas and events remains as boisterous, and relevant, and as ever.

PS: I hope you are enjoying my “nightcaps.” The Notewriters have all reached out to me to let me know they’ve got something in the pipeline. Life gets hectic. People get busy. But writing notes on liberty will never get old.

Nightcap

Brandon Christensen Links , , ,
  1. A new history of Islamic Spain Peter Gordon, Asian Review of Books
  2. A Palestinian perspective on Labour’s anti-Semitism row Nimer Sultany, Disorder of Things
  3. The crumbling of French culture Guillaume de Thieulloy, Law & Liberty
  4. Can Asia and Europe make America’s alliances great again? Tongfi Kim, the Diplomat

Vox on Puerto Rican statehood

Brandon Christensen Current Events, Politics , , , , , , ,

Vox, a left-wing publication founded by a fellow Bruin (Ezra Klein), has a pretty good piece up on Puerto Rico’s inability to “gain statehood,” i.e. to become a full-fledged member of the American federation. I say “pretty good” instead of great because the author, Alexia Fernández Campbell, does too much Trump-bashing and not enough focusing on the issue at hand.

Look, I didn’t vote for Trump. I don’t like Trump. But the Left’s infatuation with him is unhealthy, the way the Right’s infatuation with Obama was unhealthy. When Obama was president, I wanted so badly to rely on the right-leaning press for excellent opposition coverage of the Obama administration but, with few exceptions, all I got was garbage. The experience jaded me, and I expect less of the press, so the Left’s inability to look at the Trump administration’s many wrongdoings with clear-eyed sobriety is annoying rather than disheartening.

For instance, Campbell points out many problems facing the pro-statehood faction in Puerto Rico: a century-old racist SCOTUS ruling, the lack of a clearly-defined process for gaining statehood, anti-statehood factions in Puerto Rico, Washington’s lack of interest in adding another state, and Donald Trump being A Very Bad Man. One of these problems doesn’t fit into Puerto Rico’s decades-long campaign to gain statehood. Can you guess which one? Annoying!

At any rate, Campbell misses one of the problems facing pro-statehood factions: Puerto Rico would be a “blue” state (overseas readers: “blue state” means a reliable vote for the Democratic Party). If Puerto Rico really wants to become a member of the American federation, its policymakers would do well to start looking for a “red” state (reliable vote for the Republican Party) lobbying partner.