An infinite (or maybe indefinite) loop of good and bad sense in public policy

A case of couleur locale

Peloponnese in Southern Greece features one of the most spectacular rack trains in the world, “Odontotos”. The short route connects a seashore town (Diakofto) with the mountainous Kalavryta plateau (700m altitude), up and through the impressive Vouraikos Gorge. Visited it for the first time recently. I kind of knew that railways were built in 1880s/90s? Something like that. The relatively young Greece acquired the large Thessalia flatland in the north at the time, putting integration via transport into perspective. Government was frantically trying to develop inter/ intra-national trade routes and at the same time bring forth a late to the party industrial mojo. Railway became a smoking symbol of this endeavor.

The initial expansion from Athens to the Peloponnese makes sense: Apart from the obvious pros (accessibility, speed, safety, mass character, for natives and visitors alike) of the railway, there were some major ports and established trade houses there, while agricultural production was also of note. The rails formed a curve around the northern/ western coastal line of Peloponnese and cut through its mainland in the southern/ eastern sides, in order to form a ring of sorts:

It’s all Greek to you (source)

This is the 1882 plan, which mostly went through. The network was constructed in a “regular” manner, albeit with rails less wide than the international standard ‘cause cost, including cities, towns, ports and a couple of special sites (i.e., Olympia). And then we have the green-circled outcrop, the rack rail. The recent trip there left me perplexed. Why decide to undertake such a difficult task in rugged terrain, that needed expertise and special rails (different from those of the rest)?

Surely, Kalavryta was (and still is) a place of national significance. The Greek Revolution of 1821 is said to have started at a monastery (Agia Lavra) there, where the local Metropolitan blessed the gathered leaders of the upcoming war. A celebratory 1896 edition, on the occasion of the first modern Olympic Games (hosted in Athens that year), even chronicles the Peloponnese railway saga.  Regarding the rack train, it references the exquisite natural environment, Agia Lavra and another historical monastery as good reasons to give it a ride. Fair enough, but still somewhat vague. What else was there that made that region stand out from the others? Here the rationale gets a step up.

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Kalavryta was home to a wealthy, powerful family. It happened that a member of the family served as Member of Parliament when the railway project was on fire. This man persuaded the PM of the vital role a railway connection was to play in the development of the surrounding areas. Provided that a scion of the same family serves in the current Greek Parliament, too, this “local interest cuddling” reasoning gets some traction, in my view.

Even if the decision was just that, local patronizing, it still held some more rational economic – political water: Back then, the cost of sending wheat from the (fertile) plateau down to sea level was twice as high the cost of shipping said wheat from fucking Russia to Greece (compare 22km to, dunno, 2200km). And why not just import the dang thing then? Well, Greece had had the “honor” to be at the receiving end of a naval pacific blockade by the era’s great forces in 1886, so it perhaps had reached the conclusion that food security was something to be pursued.

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The rack train project was initiated by law in 1889 and (after absorbing 3x the envisaged cost plus 5x the scheduled time of completion, effectively cutting short any ideas of expanding it further towards Tripoli) began its inaugural journey in, well, 1896.

It turns out that the whole railway affair was overhyped and demand for train services did not to really stretch that far to meet supply, not to mention the appearance of competitive means of transport (steamboats and roads). The rack train, however, remained the sole anchor of reliable transport till the 1970s, when roads proper were built. In the meantime, it also became a traveler’s sensation, too, confirming the positive light that celebratory book shone on it 120+ years before.

The Three T’s in a post-coronavirus world

As countries look to recover from the economic setback caused by the coronavirus pandemic, the three t’s – trade, travel, and technology – are likely to play an important role in getting the global economy back on the rails.

Trade

Even in the midst of the pandemic, countries have been in talks regarding Free Trade Agreements (FTA’s). The UK is seeking to sign an FTA with not just the US but also Japan, so as to buttress the bilateral economic relationship and get entry into the 11-member Comprehensive Partnership for Trans Pacific Partnership (CPTPP). Vietnam’s national assembly also ratified an FTA with the European Union known as EUVFTA (European Union Vietnam Free Trade Agreement) on June 8, 2020. According to the FTA, the EU will lift 85% of its tariffs on Vietnamese exports, while the remaining tariffs will be removed over a period of 7 years. Vietnam on the other hand will lift nearly half (49%) of its import duties on EU goods, while the rest of the tariffs will be removed over a period of 10 years.

The CPTPP is also likely to expand in the near future. Japan is seeking to get Thailand, Taiwan, Indonesia, and the Philippines on board. Tokyo’s aim is to reduce dependence on China by creating an alternative set of supply chains through multilateral networks.

Technology

In recent weeks, there has also been a growing debate with regard to creating new technologies, so that the dependency upon Chinese technologies is reduced. One important step in this direction is the UK’s suggestion for creating an organisation, called D10, which consists of the original G7 countries plus India, South Korea, and Australia. The aim of the D10 is to provide alternative technologies so that dependence upon Chinese technologies is reduced.

At London Tech Week, a report titled “Future Tech Trade Strategy” was given by British Trade Secretary Elizabeth Russ. Russ spoke about a new £8 million initiative which would enable British companies to expand tech ties with Asia-Pacific countries, especially Japan and Singapore. British companies will also be assisted by tech experts stationed in its high commissions and embassies in these countries.

Travel

In recent days, the resumption of international air travel has also also been an important matter of discussion. Three members within the 11-member CPTPP – Japan, New Zealand, and Australia – have already been in talks for resuming air connectivity. Japan is also likely to ease its entry ban from countries like Vietnam and Thailand where Covid-19 cases have reduced.

Singapore, another member of the CPTPP, is also in talks with South Korea, Malaysia, and New Zealand for resumption of air connectivity. (Singapore Airlines and Silk Air have been flying passengers from select destinations in Australia and New Zealand to Singapore’s Changi Airport throughout the pandemic.)

China, too, has been seeking to revive air travel. While China has recently set up a travel corridor with South Korea, it has also signed an agreement with Singapore for reciprocal travel for essential purposes – business and official. Initially, this arrangement will be for 6 provinces – Shanghai, Tianjin, Chongqing, Guangdong, Jiangsu, and Zhejiang (travellers will need to apply for a visa in advance, and get tested for the corona virus both before departing for China and after arriving there).

Vietnam, which removed its lockdown at the end of April and resumed domestic flights, is also reviving international travel with a few select countries, such as South Korea (South Korean students can enter the ASEAN country through a special permit).

The EU is seeking to resume air connectivity with non-EU countries by the 1st week of July (the EU has already opened travel within EU member states), and it is likely that air connectivity with countries considered low risk will also resume shortly.

The resumption of travel will of course be undertaken on a step-by-step basis. Japan, for instance, has indicated that it will open its air connectivity with other countries in stages; first for businessmen, then students, and finally tourists. What is fascinating to observe is that the narrative with regard to the three t’s is not being set by the West, it is being set by Asian countries. Even within Asia, it is not just a China-driven narrative. Japan is playing an important role and, from within ASEAN, it is not just Singapore but Vietnam as well which has emerged as an important stakeholder.

Conclusion

In a post-corona world there are likely to be a number of changes, with geopolitical and economic dynamics in Asia likely to witness a significant shift.

What is also interesting to note is that travel and technology – two of the three t’s – were broadly thought of as key ‘soft power’ tools prior to the Covid-19 pandemic. Post the pandemic, there will be a strong ‘hard Power’ component to these two t’s. While in the context of travel, each country will be cautious with regard to opening up air travel, and stick to linkages with countries that have managed to control the corona virus; as far as technology is concerned, due to the rising tensions with China, the creation of alternative technologies is likely to be viewed as a security requirement (trade, the third t, had already acquired a strong strategic component even before the outbreak of the pandemic).

Eye Candy: travel advice for Dutch citizens

NOL Dutch travel advice
Click here to zoom

Interesting map, for a few reasons. The United States is in green, which means there are “no special safety risks” to worry about. What I take this to mean is that as long as you stay out of, say, North Sacramento, or East Austin, when the sun goes down you’ll be safe.

The “pay attention, safety risks” label makes quite a big jump in my conceptual understanding of this map. What this warning means is that if you are particularly stupid, you won’t end up getting mugged and losing your wallet (like you would in green areas), you will instead end up losing your life or being kidnapped for ransom (or slavery).

This is quite a big jump, but it makes perfect sense, especially if you think about the jump in terms of inequality and, more abstractly, freedom.