China

The Last Baby Boomer?

Fri, 11/06/2009 - 5:51pm

I had breakfast today at the usual table in the usual restaurant with a very smart journalist who works for a large salmon colored newspaper. We both had oatmeal because a guy just can't get enough soluble fiber. 

My friend said that at the moment the most over-used term in Washington is "defining moment." Of course, the reason the phrase-turning classes keep returning to this particular phrase is that they are cockeyed optimists. They keep believing that such a moment will happen and they will begin to understand who Barack Obama is. They don't want to have to grapple with the notion that he has already defined himself. They keep hoping that he is really will emerge from the chrysalis of his learning curve months in the presidency as the glorious butterfly of change everyone hoped he would be in the first place. The fact that there is precious little evidence this is likely to happen doesn't daunt them. They'll stick to their s.o.p. of doing the analysis they want and hoping that reality catches up to them sooner or later.

Personally, I'm getting a little worried. (Actually, I'm kind of perennially worried. Not as bad as my ex-wife who actually believed she was going to be hit by Skylab. But able to nonetheless find the cloud around every silver lining.) For months I have been going around saying this is a new generation of leadership, noting that Obama entered high school after Vietnam and his practice as a lawyer after the fall of the wall (that's the Berlin Wall, for you kids who don't remember). But so far, on key issues he has been acting like he isn't the first of a new breed but that he is actually the last baby boomer.

This may be due to the lack of creativity of some on his team who have ignored Rahm Emmanuel's famous admonition not to let a crisis go to waste and who have failed to carpe the damn diem to make this a transformational moment with regard to finance or health care. (The jury is out on foreign policy and climate.) But whatever the case, as recent polls have shown, the "yes we can" of the campaign seems have just been the prefix to "yes we can keep doing business as usual."

Still, all is not lost. Every day new opportunities arise for the President to have that defining moment and to demonstrate to critics that something resoundingly new is happening.

I was thinking of this last night at the big annual dinner for Conservation International, a terrific organization that has done the math and realized that when it comes to planets we have exactly one. Absent spares, they are focused on doing what we can to keep this one habitable. That was reason enough to show up. But the food was good and it was a great group of people. 

(It attracted a much better bunch than Michele Bachmann's latest effort to teabag America, the anti-health care rally that reputable news organizations said had 10,000 attendees and that Fox News said had 40,000. It says something about Bachmann -- no relation to 70s Canadian rockers Bachman Turner Overdrive except to the extent that we might all hope she soon joins them in obscurity --that at an event co-organized by a Republican Rep. named Steven King and bringing together some of America's most deranged wingnuts that she was the scariest person in attendance.)

Sitting not 20 feet from me at the CI event were Energy Secretary Steven Chu, White House Chief of Staff Rahm Emanuel, actor Harrison Ford and many, many vegetarians. Chu gave the main address and by any traditional Washington standards the remarks were remarkable. On the one hand the speech lacked any effort at soaring rhetoric or even structure for that matter. His delivery was uninspired. The talk came with 30 or 40 often very complex slides. In other words, we got remarks from a Nobel Prize winning scientist who was interested in facts and thoughtful analysis. He was the un-orator and a welcome, refreshing and even urgently needed alternative to the usual DC gloss. The point: the climate crisis is real and that the President is committed to addressing it and that if we harness creativity, science and engineering we can solve the problem. Oh ... and if we don't the Chinese will get there ahead of us and they will be the be neficiaries of the first big tech boom of the 21st Century. 

Listening you thought, "that's what I'm talkin' about!" But then reality sank in when I saw Rep. Edward Markey, co-author of the House climate bill, walk by and all the prognostications of a weak deal on the heels of a cobbled-together face-saver in Copenhagen came rushing into my brain. This is the great issue of our time (you can debate the trajectory of global warming all you want...you can't debate what's happening to the polar regions or the glaciers of the Himalayas). And unless something changes we are going to fumble the ball forward in the hopes that we can pick it up at some point in the future.

Obama could change that. As Al Gore said today, he could go to Copenhagen. Indeed, he should go there. If he could go for the Chicago Olympics ... supporting what's little more than a global marketing scam ... then presumably he can go to show that something like saving the planet is worth the trip and even the risk that things won't all work out so well. Two-thirds of Americans under 30 see this as a critical issue. Only the boomers and older are undecided. The president needs to pick a team. Is he with the next generation or the last one?

Same is true with China and his upcoming Asia trip. On this front, I frankly think he is trending in the right direction. I think that Obama, to paraphrase foreign policy expert Elle Woods, recognizes that Asia is the new Europe. Furthermore, after decades of pundits speculating about this, I think he can make this real with a productive trip to the region this month. 

The key: the turnabout is fair play meeting of the year. After 10 months at least significantly defined by how the Obama Administration is dealing with the banking community, now the president has to go meet with his banker. They have a full agenda: a deal on climate, collaboration on Iran and North Korea, the coordinated soft-landings of our national currencies. Pay more than lip service to the importance of the relationships ... produce real progress on these fronts ... because actions really do speak louder than words ... and he passes another critical test when it comes to proving this administration is about something new.

Two final related points:

At a meeting I was at with a bunch of big institutional investors in Chicago this week, the scenario for world markets that many were most concerned about was that of a failed Treasury auction ... something they felt was more plausible now than at any time in memory. The aftershocks for the global economy would be pretty darn grim. Avoiding this nightmare is perhaps job one in the U.S.-China relationship at the moment.

And on the climate issue ... as on health care ... I am starting to become embarrassed to call myself a centrist. The folks in the middle are among the greatest obstacles to the kind of reform that is really critical to demonstrating it is no longer business as usual in Washington. (After the entire Republican Party, that is.) My only consolation comes from the fact that most of these people are not what I consider to be real centrists.  They are actually "middle-ests", splitting the difference between left and right. True centrists don't take both sides and divide by two, they use every tool at their disposal to advance the national interest, regardless of what labels might be hurled their way. 

In short, we need courageous, centrist, post-Baby Boom leadership ... and absent a defining moment or two in this direction, all the moments that have come before will do the defining. Fortunately, in times like these, potentially defining moments crop up with alarming regularity.

Ron Sachs-Pool/Getty Images


The greatest "triumph" of the G20 is that we just don't care that much ... and why that's scary...

Thu, 09/24/2009 - 2:24pm

In a world of self-help addicts who "just feel too much," the ultimate hero was Watergate burglar G. Gordon Liddy. Never mind that the guy was a few rounds short of a full clip of ammo. He is the man who held his hand over a flickering candle flame while his flesh appeared to roast and then, when asked how he did it, responded, "The trick is not caring."

I'm reminded of this because as we contemplate this week's G20 Summit in Pittsburgh and reflect back on the breathlessness with which the entire world viewed the last two such summits, it is clear that the trick they've seemed to accomplish is that this time around we all don't seem to care so much.

That could, of course, be partially due to the fact that this event is in Pittsburgh and that not that much really exciting has happened there since Franco Harris' "immaculate reception" during an AFC Playoff Game in 1972. At least for me, even recent Super Bowl victories have lacked the gritty drama of those by-gone days as the town has become spiffier and blander. (Have you been to Pittsburgh Airport recently? It's a shopping mall where they happen to land planes.) It's not that the city isn't grittier than say, Santa Monica. It's just that I feel some of that special Pittsburgh "let's have a beer and then punch each other in the faces until we fall down" kind of charm is gradually being lost. We're not too far from the day when a little kid asks, "Why do they call the team the Steelers, Daddy?" and the father then has to explain that once upon a time the steel that went into American cars and buildings was made right here in America. (More on this last point shortly.)

Of course, the reason the meeting is in Pittsburgh has to do with at least one respect in which the region is still seen as pretty exciting to certain types of folks -- like professional politicians, for example. Obama needed Pennsylvania to defeat John McCain. And the people of Pittsburgh like our current Ambassador to Ireland Dan Rooney helped deliver for the president and the president is therefore regularly looking for ways to deliver right back. (This is not to suggest that Rooney might possibly have gotten his job as a form of political payback. His years of experience as the principal owner of the Steelers made him an obvious choice for an important diplomatic position. After all, what riddles could dealing with the Irish pose that would be more complex or challenging than say, former Steeler quarterback Terry Bradshaw's break-up with ice-skater JoJo Starbuck back in 1983.)

Rooney wasn't the only one who helped Obama, however. Which, not surprisingly, brings us back to steel again ... and in particular to the United Steelworkers. Because it is clear that it is not an accident that Obama will be using this meeting to call for new initiatives against global trade imbalances in the hometown of one of his favorite unions. Just like it's not an accident that he primed the pump for his efforts with the recent decision to impose duties on Chinese tires, an issue that was pushed most vigorously by the steelworkers. Just like it's not an accident that Obama's new manufacturing czar is Ron Bloom, who was most recently the special assistant to the president of the United Steelworkers.

Which is all by way of saying, the G20 is not in Pittsburgh either because it's beautiful (and it has its charms) or because it's boring. The G20 is in Pittsburgh because of the domestic politics of U.S. international economics. Just as Marshall McLuhan once said "the medium is the message," in this case the location is the message.

And so we return to the "trick" of this meeting. It is no small feat that while last November's G20 meeting and the one that followed it in London in April were hot topics as the world careened through the worst economic crisis since the Great Depression, that this meeting is viewed in a more relaxed matter. There is an emerging consensus that things are slowly getting better, that we are probably even out of recession even you read this. (Feeling better yet?) No doubt this is largely due to the market working through its fears and repricing accordingly, but the speed and scope of interventions in the United States and China and even some parts of Europe undoubtedly had some positive effect. To the extent we are not still "falling off the table" in the words of Larry Summers, the G20 leaders deserve some of the credit.

And if this turns into a sustainable recovery, none of us should begrudge them the credit they get. But the problem with tricks is that they often involve some form of well, trickery. In the case of Liddy, the (not very well kept) secret was that he was bonkers. But in the case of most sleight of hand the secret is misdirection. We look in one direction while what is important is happening someplace else.

I hope that's not what is happening with the global economy. I hope we are moving toward both a sustainable recovery and toward enacting regulatory reforms that ensure we don't make the same mistakes that led to last year's market debacle. I hope we are not looking at one set of indicators while ignoring another. But there are warning signs.

One is that while the G20 will agree on an expanded role for the IMF, national governments including our own are moving too slowly to address root causes of the recent crisis from opaque, often-illiquid but massive global derivatives markets to effectively controlling the risk appetites and exposures of large financial institutions whose failures carry with them a large risk of damage to the public at large. That's not to say some measures aren't being considered or implemented. It's saying that many of the steps-like creating more transparent markets in some derivatives -- don't go far enough. The biggest banks are bigger. New risky behaviors are being embraced. Old ones are creeping back into vogue.

In fact, I can't help but wonder if the biggest problem with the recent crisis was that it wasn't painful enough. Or that perhaps it ended too quickly to deliver effectively the lessons we ought to have learned.

Further, on the macro level there's still plenty to worry about. First, recovery will be slow. Second, those who are depending on Asia to lead us out don't realize how limited their capability is to do that. Chinese consumers are many decades away from being able to make up for any substantial fall-off in demand from Americans. And there are risk factors out there ... relating to dollar or commercial real estate markets or simply a panic induced by an exogenous event ... that could lead to serious trouble...the dreaded "W."

And finally, there's Pittsburgh. Or rather the reason we are in Pittsburgh.  I'm not sure the Obama team has irreversibly set a protectionist course. In fact, I'm pretty sure that the issue is still something of an open question. Summers and Geithner are certainly not protectionists by instinct and USTR Ron Kirk is still getting his legs under him. But many of these decisions are getting made on the political side. So it might be that we will add to the cocktail of inadequate reforms and questionable macro trends policies that can only make things worse: like getting a series of trade scrapes and scuffles that will impede recovery and make key relationships much more complicated.

Which is why, just as with Liddy's little trick, this one creeps me out a bit. The world is letting out a sigh of relief at a moment that has me holding my breath. 

SAUL LOEB/AFP/Getty Images


Advertisement

 

Hu is in first...

Tue, 09/22/2009 - 2:47pm

The speech by China's president, Hu Jintao, to the U.N. pledging to meet "carbon intensity targets" should be a wake-up call to the United States on several levels.

First, it shows that while the United States dithers, China has not only moved ahead in green technology, they have also moved ahead in terms of shaping the global debate about how to reduce carbon emissions and enhance efficient energy use. We can argue about the level of their targets. (They, predictably, are far too low.) We can argue about their methods, their desire to shift responsibility elsewhere or even their sincerity about aggressively pursuing their goals. But we can't argue with the fact that with Hu's comments they edged ahead of the United States in terms of seizing the initiative at this week's climate talks.

Second, in a related vein, it shows that where the United States fails to lead, others are willing to step in. In fact China, whose leaders were visibly discomfited when earlier this year it was suggested that they were now part of the G-2 with the United States, seems to relish both being out front on this issue ... and leaving the U.S. stammering about the problems of having to work with the Congress.

Third, it just shows how out of touch the U.S. Congress is on climate. The scientific world gets it (see today's FT piece on the weight of scientific studies.) The governments of most of the rest of the world's countries get it. But we keep making up excuses as though somehow Mother Nature would slow down out of respect for Senate protocols.  These do-nothings are great at coming up with excuses and with compromises that suck the meaning out of any legislation. But in this case, the consequences are global -- impeding progress in combating a critical threat and, at the same time, dramatically undercutting American prestige.

That China's formulation of "carbon intensity targets" is not the emissions caps that we and the Europeans have been urging on them is of consequence, but it is not central. Their commitment to reducing the output of carbon associated with each dollar of GDP is at least a respectable initial proposal. At least their words and their body language ... not to mention their quarter trillion dollar national investment in green technology ... say they are taking this seriously. They are not simply fiddling while the atmosphere burns (or at least warms up measurably) as are their counterparts on Capitol Hill.

How galling must it be to be U.S. climate negotiator Todd Stern, a dedicated, earnest agent of change, a guy who really wants America to lead, who is held back by "realistic" estimates of what Congress will permit? Hopefully, the Chinese action and the efforts of other countries this week will cause the administration to shift strategies. They too should have a proposal on the table and they should push for what they think is needed.  And then, they should go sell that on the Hill. If Congress won't lead, they must.

Fortunately, Congress's primary excuse on this front -- that China will drag its feet -- is now gone. They will no doubt quibble with the Chinese method and intent. But watching from this seat, they will seem mighty small in doing so and many, whose goal was really to cater to special interests like that minority of businesses who are still not taking this seriously, will seem utterly derelict in their duties.

China will need to do much more than Hu will promise this week. But he and his government deserve credit for reminding the U.S. Congress what leadership can be about.

EMMANUEL DUNAND/AFP/Getty Images


Since when did trade policy become a covert operation?

Mon, 09/14/2009 - 1:44pm

Like thieves in the night, the administration snuck out an announcement late Friday evening that President Obama had signed an order imposing massive duties on Chinese tires. The United States argued that a "surge" in sales of the Chinese tires indicated unfair pricing and resulted in the loss of 7,000 U.S. jobs. They did so at the urging of unions and despite a lack of support from U.S. tire manufacturers, many of which are already producing tires in China. Naturally, the Chinese erupted with cries of "rampant protectionism" and introduced their own twist on giving the United States the bird with threats of retaliation against U.S. poultry imports. Vehicles may also be targeted.

Why you might ask would they do it late on a Friday evening, after newspapers and evening news shows had seen their deadlines pass? And more saliently, why might the United States do this, in the first place? 

Of course, the first question is easy. The Obama administration was trying to bury the story. You can hardly blame them. It's not pretty. It's pure politics. I'm all for using trade laws to ensure fair trade. But, the U.S. case here is weak and its timing is appalling.

Which in turn gets us to the second question.

Just one day earlier Russia's announcement of its desire not to impose sanctions on Iran in an effort to restrain its nuclear arms ambitions had U.S. officials scrambling for plan B. One very senior official mentioned to me this would mean an intensified effort to reach out to the Chinese. Eight hours later we imposed these duties on them. Now I understand that the secret to a successful "partnership" with the Chinese is the ability to walk and chew gum at the same time -- or more accurately to walk together while occasionally smacking each other around the head and face. But still, a little thoughtful coordination might be nice. 

Given the central importance of China on Iran, of China on North Korea, of China on the global economic recovery, of China on climate and given the weakness of the case on tires and the generally lousy message it sends regarding our stance on trade (the Obama team's first big trade move is clearly a protectionist one), couldn't this have been tabled? Handled another way?

It should have been, of course. But it wasn't for two reasons. One is that the administration needs the unions to get out there and provide grass roots support on the health care bill. That's been commented on by others and is certainly an important piece of explaining this move which, at best, can be described as ill-timed and ill-considered.

But there is another undercurrent here. This was just one of several moves last week that suggest that the Obama administration sees another threat that is more important to its own survival than whatever happens in Iran or on climate or even on health care. What Iranian nukes are to Israel in the way of an existential threat, unemployment rates are to the Democratic majority in Congress in terms of next year's elections. You will see many offensives from this ambitious administration over the next 18 months but the most central from a political point of view will be a full-court press to show that not only do they care about jobs but that they have a plan for reversing the losses that have been the most painful dimension of this recession.

So last week there were several early steps in this regard. Positioning themselves as a champion of job preservation to unions on tires was just one. Moving car czar Ron Bloom to become the "manufacturing czar" was another. And, buried in today's announcements of financial reforms you will find announcements of continued financing supports for small businesses that were retained despite reported resistance from the Fed. These are just minor tactical moves. But taken together you are seeing the first volleys in a battle to position the administration as activists on job creation. Climate legislation may falter, but rest assured there will be an energy bill that is positioned largely as a green jobs bill in any case. There may not be another stimulus package in name, but next year's budget will contain one within it and the focus will be jobs.

There's no harm in this, in principle, of course. Indeed, it makes sense and one hopes that the administration's economic team gets in front of this story in a way they did not on health care, defining goals and principles clearly and early. But the administration needs to be careful. Exports are a leading U.S. job creator and triggering global protectionism and trade wars worldwide while simultaneously hanging back from getting FTAs approved or making progress on a global round of trade talks is a proven way of losing jobs in the name of creating them.

And if you are losing jobs through protectionism and losing vital partners internationally at the same time, well, that's a formula for trouble that can't even be hidden by quasi-clandestine press announcements late on a Friday night.

MARK RALSTON/AFP/Getty Images

( filed under: )

Christian Brose is all "wee wee'd up"...

Tue, 08/25/2009 - 11:32am

Despite a growing desire on my part to avoid the cage-match side of blogging, it is hard not to respond to Christian Brose's post "What is David Rothkopf smoking?" Brose seems to have, in President Obama's words, become all "wee-wee'd up" over my article in Sunday's Washington Post. I respond, of course, as a public service because so much of what he said provides a useful insight into how far we have come since the days of the Bush administration and how desperate Bush apologists are to find a way to suggest that their man and the policies they promoted were not actually the nadir of American foreign policy.

I should note however, that I also do this reluctantly because I think Brose is a pretty good writer and a fairly thoughtful guy. Still, when someone suggests that I have been a member of "the foreign policy hoi-polloi that went into intellectual hibernation in 2004 and only awoke this January" I figure, it's probably OK to offer a few words on behalf of my views. (Although it does explain the acorn residue I found in my cheeks.) 

I will ignore for a moment the fact that Brose clearly is willing to spot the world the first term of the Bush administration as indefensible and focus on his core notion that somehow the years Condi was at State were almost indistinguishable in intent, concept and execution from what we have seen to date from the Obama team. It should be noted that coincidentally Brose was a speech-writer at State during the Bush administration.

Let's take his points one at a time:

  • Brose opens with a snarky summary of my article. The thrust is: Obama foreign policy is not revolutionary and I am kissing the asses of the Obama administration. I refer folks back to the past eight months of daily blogging as evidence that I have no inclination to butter up the new team and regularly do not. He does not note that he spends the entire article kissing the wholly discredited asses of his former employers.
  • He then goes on to wonder aloud how anyone who "thinks and writes about foreign policy for a living" could think Clinton or Obama are transforming U.S. foreign policy. I have to admit, whatever the flaws in their individual policies, I find it hard to see how anyone could think they are not. Does he really think these folks just picked up where George W. Bush and Condoleezza Rice and Dick Cheney left off? In Iraq? In Afghanistan and Pakistan? With their approach to engagement? With their commitment to multilateralism? With their approach to Guantanamo or torture? With their outreach to the Muslim world? With their commitment to reverse nuclear weapons proliferation? I could go on ... but will just take his main points in succession to continue in this vein.
  • Brose lists Bush administration development "advancements" to suggest that they effectively covered the waterfront when it comes to reforming the development process. While Bush actually did some good here (and I didn't argue he didn't), that doesn't mean the work is done or that what the Clinton team is doing at State is not promising. The Obama team inherited an aid apparatus that was still deeply dysfunctional, underfunded and focused on missions that were not core. The QDDR process I mention in the article represents a commitment to strategic reevaluation that recognizes the fluid nature of international affairs today and seeks to institutionalize change in much the same way that the QDR does at DoD. Further, there is a massive amount of work that needs to be done if development policy is to be rendered effective in the current environment ... creating the ability, for example, to effectively do post-conflict reconstruction that so flummoxed the Bush administration for so long comes to mind, as does a civilian-side Goldwater-Nichols and other ideas that are currently being reviewed within State and the NSC process.
  • His next paragraph argues that since the Bush administration participated in many multilateral forums that is the same thing as the Obama administration's commitment to the centrality of new partnerships. Can he actually believe that the Bush administration was a champion of multilateralism? By this same theory all people who go to church are virtuous and I, who talk a very good diet game, am actually 20 pounds lighter than reported this morning by the scale. Admittedly, there was a line in my article that was cut due to space considerations that I wish had been left in which said that while many of the current policies have roots in the past, what is happening now is very different because of the way it is being approached, the centrality it is being given, the degree of involvement of top officials, etc. Nothing illustrates this as much for me as the role emerging powers are being given. First, this is not a "Bush-era" inheritance. I know. Because I actually helped develop and run the first inter-agency process focused on U.S.-Emerging Markets relations during the Clinton years. Second, he cites a four-year-old Condi speech in which she mouths words he may have written about partners in the emerging world but seriously, wasn't he paying attention? At the time she did it, the perception that the U.S. was arrogantly acting apart from the rest of the world was near its apotheosis. The core concepts of Bush era foreign policy were of "us and them" and of our ability and willingness to effectively act alone or within sham coalitions to advance our interests. The core concept of the Obama administration is that just won't work anymore and that effective partnerships with a core group that includes new allies are the sine qua non of international progress.
  • He then goes on to say that the administration has too little to show for its efforts. He minimizes restoring American relations with the world as if that weren't central to foreign policy. He then argues that this is not so meaningful because "cooperation has not always followed." Seriously? Will the Obama-Clinton restoration of America's relations with the world only be complete if everyone in the world cooperates with us always? This reveals his core misunderstanding of the nature of the kind of partnerships on which the Obama-Clinton team is seeking to build U.S. foreign policy. Also, in terms of not having much to show for their efforts, that's just ridiculous. Only seven months into their efforts U.S. policy has changed dramatically in Iraq and in AfPak, the administration has become deeply involved in the Arab-Israeli issue (which took the Bush administration about 7 years to discover), it has helped engineer an international response to the financial crisis, it has restored America's damaged reputation worldwide, the president's Prague and Cairo speeches represented dramatic breaks with the Bush past and set U.S. policies with the Muslim world and re: elimination of nuclear weapons in a new direction, and so on. It's just the beginning ... but it is a beginning very unlike the past eight years.
  • Further his one-sided assessments of issues worldwide is full of inaccuracies. He says others won't help with Guantanamo but fails to note the benefits accruing to us from shutting it down. He says India and China don't share enthusiasm for a climate deal while failing to acknowledge that we are in a global negotiation, that the United States is now deeply involved as an advocate for progress for the first time or to note the differences in position between India and China (China is much more forward leaning and inclined to a deal). He inaccurately suggests that the only thing we can agree with the Russians is to reduce the number of nukes (as if that were a small thing). He says Pakistan is dysfunctional but fails to note how much more we are currently doing to address that. He says Iran and North Korea are a still difficult while failing to acknowledge the recent progress made with the North Koreans or that engagement with Iran is a real departure (on which the jury is admittedly still out).
  • He concludes with the notion that we "are still a world of nations" (simplistic and wrong ... we are a world of many actors some of the most important of which on key issues are non-state actors) and that the Obama administration has been getting "mugged" by our differences since coming into office. This suggests again a misunderstanding of the nature of international relations. Good foreign policy does not produce a problem-free world. It just minimizes threats while advancing our interests. But, it also fails to note the central point that no doubt will resonate in the mind of the rest of the planet...which is that during the Bush years, it was the United States that was mugging the world and the system of international law we had fought for a century to advance.

That's the key point about these early days of this new foreign policy team. All administrations talk about partnerships and new relationships. To my mind, this one seems to believe what it is saying and is doing something about ... and at the very least is not as transparently hypocritical about such matters as was its predecessor. That in and of itself is perhaps the transformation most of the world was most hoping for. 

PAUL J. RICHARDS/AFP/Getty Images


In diplomacy, beware the double positives…

Tue, 07/28/2009 - 12:40pm

In its obituary of the famed and beloved Columbia philosopher Sidney Morgenbesser back in 2004, the New York Times wrote:

In the 1950's, the British philosopher J. L. Austin came to Columbia to present a paper about the close analysis of language. He pointed out that although two negatives make a positive, nowhere is it the case that two positives make a negative. 'Yeah, yeah,' Dr. Morgenbesser said.

Austin was clearly unprepared for Morgenbesser. But he was also clearly unfamiliar with diplomacy in which the double positive can be deadly. 

For example, on one level, if you are an ally like Israel, you might think that the only thing better than being visited by one senior U.S. official (say, Secretary Gates) would be another visit in the very same week from another senior official (say, National Security Advisor Jim Jones). Even better would be adding yet another bit or two of senior level attention, say that of Mideast Negotiator George Mitchell or NSC Mideast guru Dennis Ross. But four times the high-level visitors are hardly four times the fun, or to put it another way, one high level visit is an honor but four in a week is a serious sign of trouble.

While all the visits to date have produced upbeat official statements at their conclusion, behind the scenes it is clear that concerns about the Israeli stance on Iran and the Netanyahu stance on settlements has pushed this relationship to what may be one of its lowest ebbs in modern memory. As one Israeli said to me, "We spent half the Bush administration complaining our issues weren't getting any attention. Now, we're starting to look back on being neglected as the good old days..."

Also, of course, too many envoys raises another question, "if your government speaks with one voice, how come I am hearing so many voices?" This is related to another classic set of double-positives encountered in politics and diplomacy, the problem of too many chiefs. For example, having copresidents of an organization doesn't mean having twice as much leadership, it usually means half as much…or less. 

Which brings us to another instance this week in which the positives have been signs of the negatives: the U.S.-China Strategic Economic Dialogue, which is cochaired on the U.S. side by both the Secretary of State and the Secretary of the Treasury. As Glenn Kessler wrote in the Post today:

On Monday, about 200 senior Chinese officials traveled to Washington and heard soothing words of reassurance from U.S. officials: The dollar is still sound, your investments are safe and we are working really hard to restructure our economy.

Such is the nature of the U.S.-China relationship today. Behind all the reassuring language is a nervous sense that the fate of the world economy is increasingly dependent on the United States and China working together.

In other words, it's our turn to sing "Don't You Worry 'Bout a Thing" which, of course, means, in the best interpretation, that our partners the Chinese are worried and at worst means, "worry!" (How things have changed since we were beating them up about their economic management.) Certainly every reassurance we offer is more a sign of an underlying concern than it is a true positive statement about the economy. Thus, the more positives, the more worries. 

This, in turn, brings another Morgenbesser anecdote to mind, also recounted in his Times obit:

In the 1970's, a student of Maoist inclination asked him if he disagreed with Chairman Mao's saying that a proposition can be true or false at the same time. Dr. Morgenbesser replied, 'I do and I don't.'

Mark Wilson/Getty Images 


Great powers aren't what they used to be...

Tue, 07/21/2009 - 3:46pm

In the wake of Hillary Clinton's generally successful trip to India, the Financial Times turned to former State Department No. 3 guy Nick Burns for some perspective. Nick, one of the very best the State Department has produced in recent years despite his indefensible love of the Boston Red Sox, said, "If you look at the history of the 21st century, there will be just a handful of great powers and India and the U.S. will be among them." 

Which got me to thinking...

The United States is certainly at the moment a great power by any definition. We are the only country on earth capable of projecting force anywhere at any time. The U.S. GDP is almost three times that of the next biggest country, Japan and is roughly the equivalent of the next four added up (Japan, China, Germany and France.) To get a different perspective on the size of the U.S. economy relative to that of the world, take a look at this two-year old map comparing the size of the economies of U.S. states to those of other countries. 

We have plenty of political juice, are the leading force in the alliance that spends 85 cents of every defense dollar on the planet and helped design the international system in ways that it reinforces our position. We're also protected by two great oceans and our neighbors are fairly easy to get along with. (Mexico is a bit of a concern at the moment but Canada lost its last remaining offensive capability when Wayne Gretzky moved to the United States.)

All that said, the United States may be nearing the peak of its power. With the U.S. public debt around 90 percent of GDP and likely to pass the 100 percent mark in the next year or two, with well over $40 trillion in unfunded retirement health care liabilities that are unlikely to be significantly reduced anytime soon, and with uncertainty about when our addiction to debt will end, we're just going to have less money to spend for everything...including defense. We're also likely to have less of a stomach for spending on the kind of far-flung efforts associated with projecting force. Iraq-fatigue which will soon be joined by AfPak-fatigue will further dampen our appetite for using that big military we have and we may well take a generally more defensive, less-interventive stance than we have seen in the recent past. 

So, what about the other "great" powers? Who are they?

Burns says India will be among them and it's hard to argue with the proposition that India is critically important to world affairs (which is why Clinton's outreach and efforts to institutionalize a stronger relationship were so welcome and timely). But in terms of military capability, although India has a big military (the world's third largest in terms of manpower), it has only the ninth largest defense budget in the world and spends only about a 20th of what the United States spends, it has only one aircraft carrier and while it is expanding its capabilities rapidly as perhaps the largest developing world arms acquirer, it is ultimately constrained by the size and state of its economy. While growing rapidly, it still has a nominal per capita GDP of just over $1,000 a year, ranking it 142nd in the world. Roughly 80 percent of the population live on less than $2 a day and according to some estimates the almost 90 percent who live on less than $2.50 a day on purchasing power parity terms represent a larger chunk of the population than who live on the same meager amount in sub-Saharan Africa. The country is heavily dependent on foreign oil imports, half the children are malnourished...it's growing,  it's a great story,  it's a remarkable achievement in democracy, but it's ability to project force or throw its economic weight around is severely limited. (It's economy is smaller than that of Canada which, as noted earlier, is no one's idea of a great power...even though they're a swell neighbor, a useful ally and could offer great vacation values should global warming continue.)

Ok, then, certainly China is a great power. After all, they have 1.2 billion people. (Although India will soon overtake them as the world's most populous country.) Their economy is growing, according to Morgan Stanley, at a robust 9 percent even in the midst of this nasty "great" recession. They have the world's third largest economy (which is about twice as big as the economy of California) and will soon surpass Japan. They have the world's second largest army and the second largest defense budget...which is about one seventh that of the United States. They are upgrading their capabilities but unlike the United States or other would-be great powers on this list they do have as a significant military consideration maintaining the integrity and stability of their country in the face of restive populations in far-flung regions. Despite China's economic growth it faces the paradox of labor shortages and perhaps as many as 150 million unemployed or under-employed citizens floating unsatisfied through society. It is heavily dependent on foreign imports of food and energy as well as on a faltering U.S. market. Around three-quarters of its reserves in U.S. dollar denominated instruments which shows a heavy dependence on a potential rival (that's a two way street, of course.) And despite astonishing progress in reducing poverty, in terms of per capita income China is still poor, ranked at somewhere between 100 and 110 among all countries worldwide. Finally, China is ill-at-ease on the world stage, uncomfortable throwing around its political weight and still reluctant to intervene far from home except economically (which will lead, of course, over time to growing influence abroad.)

Who else? The EU would be a great power in economic and military terms...if it actually had a workable means of achieving a common foreign policy and the will to actually project force. Its individual members, notably Germany, France and the U.K., are important powers, 4th, 5th, and 6th respectively in GDP...but France is home to only the 17th largest military in the world, Germany the 20th largest and the U.K. the 32d largest. What's more, Germany is particularly reluctant to project force (much to the relief of anyone with a memory), France does so seldom and the U.K. is developing a pretty bad taste in its mouth in that respect recently. Japan is still legally constrained from projecting force and, while it is the world's second largest economy for the moment (say the next three to five years), that status, is fading and its economy is struggling. While it might be expected that in the next few years Japan will normalize it's military, it is still unlikely it will be useable for much beyond defensive and multilateral actions for the foreseeable future. Russia? Lots of nukes -- perhaps 3,000-5,000 warheads putting it alone on a par with the U.S. (the stockpiles of other would be great powers -- the U.K., France, China and India-range from 10 percent of the low end of this total for France to just over 1 percent of the high end of the total for India.) And Russia's economy? Smaller than that of Brazil (and of course, that economic powerhouse, California). It also may contract at as much as 10 percent this year, which is roughly half what some estimate the bad loans in the Russian banking system. But Russia's biggest problem that it is undergoing one of the greatest peace-time demographic collapses in history, with estimates suggesting the population could shrink from almost 150 million to 80 or 100 million by 2050. That would be a population loss equal to or greater than that associated with the Black Plague of the mid-14th Century in Europe. 

What's more, many of the great powers are further constrained by participation in global regimes that only grant legitimacy to multilateral undertakings...which are very hard to achieve as we have regularly seen. While Gideon Rachman makes the case for a UN army in today's FT (one with which I agree...there will be no effective NPT 2.0 without enforcement mechanisms that include the ability to wield force to require compliance)...we're a long, long way from there. So the rule of international law has effectively weakened those who did the most to craft it (even if it has, as I believe, improved the general quality of civilization). And who knows what the impact will be of another global economic shock if, as I believe is going to be the case, we fail to fix what is broke this time around? On these big economies? On their ideological underpinnings?

Are these "great" powers nonetheless still greater powers than the others of the world? Certainly. Most of the countries of the world are virtually powerless. Only 25 countries have the ability to field active armed services in excess of 200,000. Of these perhaps 17 would be considered very economically constrained and all but a tiny handful would be useless too far beyond their own borders. Only 25 countries have GDP's larger than the annual sales of the each of the world's 3 largest companies. (Not an apples to apples comparison, I know...but I offer it primarily to underscore the relative smallness of the rest of the world's economies. The 100th largest company in the world in sales, Target, has sales that total more than the GDPs of all but the 60 largest.) Most countries have precious little political influence and that influence tends to be diluted when it is channeled through low-functioning multilateral institutions. It is amplified via effective alliances but precious few of these exist on any global scale.

That said, as striking as the weaknesses of great powers may be, a parallel trend is that which gives the weakest access to powerful technologies (of mass destruction or political persuasion) that enable them to gain previously unavailable global stature and leverage. Twenty five countries are reportedly considering or planning nuclear power programs. Some of these will lead to nuclear weapons programs. Some of these will contribute to proliferation and making new threats available to weak states and non-state actors. And some of those big companies I mentioned earlier are now weighing in, using their global economic clout to influence everything from tax codes to trade regimes to who wins or loses big elections. So the ends are converging on the middle and the terms we are used to, great and small, powerful and weak, are coming to mean something entirely new.

JEWEL SAMAD/AFP/Getty Images


Real World L'Aquila: G8 à la Berlusconi

Tue, 07/07/2009 - 4:31pm

Washington is a city of oxymorons. It is a city of garden variety morons, as well. On the oxymoron side we have old favorites like "military intelligence," "compassionate conservative," and "government organization." On the moron side...well, in U.S. politics we have morons on both sides. 

Now we have something new however, as in Washington the oxymorons and the morons are coming together in the form of America's latest reality television extravaganza (we really needed another): "Real World Washington." This is a unique double oxymoron in that it calls itself real but, like most reality TV, it is not...and because it is suggesting, fancifully, that there is somehow a connection between Washington and the real world. As for the morons, well you need only visit the bars around the DuPont Circle neighborhood location of the Real World set and you can view for yourself the cast in all their beer-soaked glory.

At first I wondered to myself how it was that a show like "The Real World" could have become MTV's longest-running hit, now in its 17th year. After all, it's pretty formulaic. Semi-attractive young adults including at least one or two with deep psychological problems are put together in a house in which they: drink, puke, appear to grope one another in grainy night-vision camera shots, and then fight about who groped whom.

Of course, thinking of it that way, I naturally started to wonder why it took so long for the show to come to the home of American politics which have been featuring all these activities for years. (For those of you who are more insensitive than I, insert Teddy Kennedy joke here. And for those of you who don't have the stomach for such humor but still want a laugh at the expense of all that Kennedy family groping, see this link about a new book on America's zany royal family.)

Once I started thinking about politicians and groping and the real world, however, my thoughts immediately drifted eastward, out over the Atlantic, and in the direction of the world's most famous aging libido, that of the host of this week's G8 Meeting, Silvio Berlusconi. This in turn led to a thunderbolt of inspiration akin to that which struck another famous Italian in the Berlusconi mold, Michael Corleone, when he first saw the ill-fated Apollonia Vitelli. What about the Real World Berlusconi-style? What about Real World L'Aquila? Once we get the G8 leaders to Italy, why don't we lock them in a room until they actually produce something productive? And let's put it all on video! Big Brother for Big Brother

And to keep it interesting we can add elements of other reality shows. For example, how about a taste of Real Housewives Berlusconi-style, while we're at it. Just locking Silvio and his really (justifiably) angry, estranged wife Veronica Lario in a house for the enjoyment of tv audiences everywhere would be irresistible.But throw her in with a bunch of other world leaders? See what happens when Silvio shoots an ill-considered glance in the direction of Michelle Obama? Who's wailing on him first? Veronica, Barack or Michelle? (My money is on Michelle.) Sadly, of course, Veronica is passing on the G8 Summit, forcing the Italians to turn the wife of their president to be the hostess for the affair.

We still have plenty of fun cast to choose from, however, given that the meetings in Italy will actually be attended by more than 25 countries, including all the G20. Just think of the potential gang we could feature in the house that meet the Real World formula for diversity and mayhem. 

  • Of course, we start with the hard-partying Berlusconi. He may be 72 but he has the judgment and appetites of a 19-year-old frat boy and is certain to end up in the money shots that MTV needs. For example, see the recently released photos of him enjoying two women locked in a girl-on-girl kiss in front of him at a party at his estate in Sardinia. 
  • Barack and Michelle Obama add the diversity element. In fact, this week they will actually break the color line at the G8 Summit, making it the first to actually feature a person of color sitting in one of the principal's seats. But they are also fun-loving, party people. Barack danced on the Ellen show and in Dreams from My Father he admitted to the kind of recreational drug use that one has to believe is an off-camera Real World specialty. Michelle would, of course, be the serious one in the house, the good girl who MTV clings to as a sign of the redeeming social content of the series.
  • Carla Bruni knows how to party like a rock star from having partied with so many rock stars and because she is so telegenic she will be allowed to bring along her little guy, who will undoubtedly end up being the "Spencer" (to mix reality TV metaphors) of the show, mouthing off to everyone and likely getting into a fight with some of the bigger, more athletic members of Real World L'Aquila.
  • One of the more dangerous of "jock" contingent will be former member of the Japanese Olympic team, Taro Aso, who competed in the shooting competition. Perfect for TV, Aso is even more dangerous when shooting off his mouth than when using a weapon. For instance, there was the time that he said sketched out his vision for a better Japan, suggesting that he wanted to help make it a country in which "rich Jews" would like to live.
  • Another of the "jocks" with a professed love of weightlifting early in his life is Russian President Dmitry Medvedev. More appealing however to producers at MTV will be his tastes in music which include Black Sabbath and Deep Purple. So, two birds with one stone...he's the muscle (he still swims a mile twice a day) and the requisite head-banger of the crowd. (Perhaps this will create fireworks others in the group who were firebrands in their youth, like former secretary for Agitprop of her chapter of the Free German Youth socialist youth group, Angela Merkel. Maybe after a few beers with vodka chasers they might break out in a Karaoke performance of "99 Luftballons" or, from the Deep Purple songbook, "Smoke on the Water.")
  • Sadly, this being television, some thought may have to be given to kicking Canada and Great Britain out of the G8 due to the fact that Stephen Harper and Gordon Brown are so boring. At least, there is nothing in their youths that suggests they would ever indulge in the kind of hijinks that make for good reality television. Harper and Canada even managed to take the drama out of the global financial meltdown by actually properly managing their financial systems (something that can't be said for Brown who manages to achieve a paradoxical blend of boring and yet somehow terrifying at the same time.)

Given the fact that Berlusconi will be joined in Italy by members of the G20, the cast can be expanded to included a diverse enough group of lively characters to make this one version of Real World actually look a lot more like the real world than its many predecessors. South Africa's Jacob Zuma is, for example, a party all by himself with four wives, three other fiancés, perhaps as many as 18 children, and a list of run-ins with the law that would allow him to play the bad boy role. China's Hu Jintao was reportedly fond of singing and dancing in his teen years and therefore might add a little lift to those party nights out. And although Brazil's President Lula and Zuma may only have achieved the fourth and fifth grade in school, respectively, this actually makes them educationally over-qualified by Real World standards. 

Sadly for the Real World premise...and for the real world...not many of the visiting leaders are women so we will have to rely on host Berlusconi to add a few of his close personal friends to add a little sexual tension to the show.  But what with party credentials of the crowd gathering in L'Aquila and the help of Il Cavaliere it's clear this could make for fine viewing.  If we wanted to make it something more than that...and something more than the bland communiqué machine G8 meetings typically are...we could add a different reality show twist, à la say "Big Brother" or "Survivor," in which participants are voted out after each week. Except in this instance, what we could do is rely on the general odiousness of hanging out with pols around the clock to motivate the cast to want to leave the house, but then not let them out unless they actually get something done in their negotiations. Think how that system would change the nature of summits. Although my fear is that rather than producing more productive meetings of government leaders, the requirement that they get something done would actually lead to the end of summits altogether.

MARCO LONGARI/AFP/Getty Images