📄 Extracted Text (9,661 words)
From: Office of Terje Rod-Larsen
Sent: Wed 1/25/2012 7:20:50 PM
Subject: January 25 update
25 January, 2012
Article 1.
Foreign Affairs
The Arab Spring at One
Fouad Ajami
Article 2.
NYT
The State of the Union in 2012
Editorial
Article 3.
Wall Street Journal
The State of His Policies
Editorial
Article 4
Los Angeles Times
No joy in Egypt
Daniel Williams
Article 5.
Foreign Policy
EFTA_R1_00234066
EFTA01845120
Why China's rise really is bad for America
Gideon Rachman
Article 6.
The Christian Science Monitor
Can democracies thrive with financial
§ystems that are out of control?
An interview with Zbigniew Brzezinski
Ankle I.
Foreign Affairs
The Arab Spring at One
Fouad Ajami
January 24, 2012 -- Throughout 2011, a rhythmic chant echoed
across the Arab lands: "The people want to topple the regime." It
skipped borders with ease, carried in newspapers and magazines,
on Twitter and Facebook, on the airwaves of al Jazeera and al
Arabiya. Arab nationalism had been written off, but here, in full
bloom, was what certainly looked like a pan-Arab awakening.
Young people in search of political freedom and economic
opportunity, weary of waking up to the same tedium day after
day, rose up against their sclerotic masters.
It came as a surprise. For almost two generations, waves of
democracy had swept over other regions, from southern and
EFTA_R1_00234067
EFTA01845121
eastern Europe to Latin America, from East Asia to Africa. But
not the Middle East. There, tyrants had closed up the political
world, become owners of their countries in all but name. It was a
bleak landscape: terrible rulers, sullen populations, a terrorist
fringe that hurled itself in frustration at an order bereft of any
legitimacy. Arabs had started to feel they were cursed, doomed
to despotism. The region's exceptionalism was becoming not
just a human disaster but a moral embarrassment.
Outside powers had winked at this reality, silently thinking this
was the best the Arabs could do. In a sudden burst of
Wilsonianism in Iraq and after, the United States had put its
power behind liberty. Saddam Hussein was flushed out of a
spider hole, the Syrian brigades of terror and extortion were
pushed out of Lebanon, and the despotism of Hosni Mubarak,
long a pillar of Pax Americana, seemed to lose some of its
mastery. But post-Saddam Iraq held out mixed messages: there
was democracy, but also blood in the streets and sectarianism.
The autocracies hunkered down and did their best to thwart the
new Iraqi project. Iraq was set ablaze, and the Arab autocrats
could point to it as a cautionary tale of the folly of unseating
even the worst of despots. Moreover, Iraq carried a double
burden of humiliation for Sunni Arabs: the bearer of liberty
there was the United States, and the war had empowered the
Shiite stepchildren of the Arab world. The result was a standoff:
the Arabs could not snuff out or ignore the flicker of freedom,
but nor did the Iraqi example prove the subversive beacon of
hope its proponents had expected.
It was said by Arabs themselves that George W. Bush had
unleashed a tsunami on the region. True, but the Arabs were
good at waiting out storms, and before long, the Americans
EFTA_R1_00234068
EFTA01845122
themselves lost heart and abandoned the quest. An election in
2006 in the Palestinian territories went the way of Hamas, and a
new disillusionment with democracy's verdict overtook the Bush
administration. The "surge" in Iraq rescued the American war
there just in time, but the more ambitious vision of reforming
the Arab world was given up. The autocracies had survived the
brief moment of American assertiveness. And soon, a new
standard-bearer of American power, Barack Obama, came with a
reassuring message: the United States was done with change; it
would make its peace with the status quo, renewing its
partnership with friendly autocrats even as it engaged the hostile
regimes in Damascus and Tehran. The United States was to
remain on the Kabul hook for a while longer, but the greater
Middle East would be left to its Furies.
When a revolt erupted in Iran against the theocrats in the first
summer of his presidency, Obama was caught flatfooted by the
turmoil. Determined to conciliate the rulers, he could not find
the language to speak to the rebels. Meanwhile, the Syrian
regime, which had given up its dominion in Lebanon under
duress, was now keen to retrieve it. A stealth campaign of terror
and assassinations, the power of Hezbollah on the ground, and
the subsidies of Iran all but snuffed out the "Cedar Revolution"
that had been the pride of Bush's diplomacy.
Observers looking at the balance of forces in the region in late
2010 would have been smart to bet on a perpetuation of
autocracy. Beholding Bashar al-Assad in Damascus, they would
have been forgiven the conclusion that a similar fate awaited
Libya, Tunisia, Yemen, and the large Egyptian state that had
been the trendsetter in Arab political and cultural life. Yet
beneath the surface stability, there was political misery and
EFTA_R1_00234069
EFTA01845123
sterility. Arabs did not need a "human development report" to
tell them of their desolation. Consent had drained out of public
life; the only glue between ruler and ruled was suspicion and
fear. There was no public project to bequeath to a generation
coming into its own -- and this the largest and youngest
population yet.
And then it happened. In December, a despairing Tunisian fruit
vendor named Mohamed Bouazizi took one way out, setting
himself on fire to protest the injustices of the status quo. Soon,
millions of his unnamed fellows took another, pouring into the
streets. Suddenly, the despots, seemingly secure in their
dominion, deities in all but name, were on the run. For its part,
the United States scurried to catch up with the upheaval. "In too
many places, in too many ways, the region's foundations are
sinking into the sand," U.S. Secretary of State Hillary Clinton
proclaimed in Qatar in mid-January 2011, as the storm was
breaking out. The Arab landscape lent her remarks ample
confirmation; what she omitted was that generations of
American diplomacy would be buried, too.
THE FIRE THIS TIME
The revolt was a settlement of accounts between the powers that
be and populations determined to be done with despots. It
erupted in a small country on the margins of the Arab political
experience, more educated and prosperous and linked to Europe
than the norm. As the rebellion made its way eastward, it
skipped Libya and arrived in Cairo, "the mother of the world."
There, it found a stage worthy of its ambitions.
Often written off as the quintessential land of political
EFTA_R1_00234070
EFTA01845124
submission, Egypt has actually known ferocious rebellions. It
had been Mubarak's good fortune that the land tolerated him for
three decades. The designated successor to Anwar al-Sadat,
Mubarak had been a cautious man, but his reign had sprouted
dynastic ambitions. For 18 magical days in January and
February, Egyptians of all walks of life came together in Tahrir
Square demanding to be rid of him. The senior commanders of
the armed forces cast him aside, and he joined his fellow despot,
Tunisia's Zine el-Abidine Ben Ali, who had fallen a month
earlier.
From Cairo, the awakening became a pan-Arab affair, catching
fire in Yemen and Bahrain. As a monarchy, the latter was a rare
exception, since in this season it was chiefly the republics of
strongmen that were seized with unrest. But where most
monarchies had a fit between ruler and ruled, Bahrain was riven
by a fault line between its Sunni rulers and its Shiite majority.
So it was vulnerable, and it was in the nature of things that an
eruption there would turn into a sectarian feud. Yemen,
meanwhile, was the poorest of the Arab states, with secessionist
movements raging in its north and south and a polarizing leader,
Ali Abdullah Saleh, who had no skills save the art of political
survival. The feuds of Yemen were obscure, the quarrels of
tribes and warlords. The wider Arab tumult gave Yemenis eager
to be rid of their ruler the heart to challenge him.
Then, the revolt doubled back to Libya. This was the kingdom
of silence, the realm of the deranged, self-proclaimed "dean of
Arab rulers," Muammar al-Qaddafi. For four tormenting
decades, Libyans had been at the mercy of this prison warden,
part tyrant, part buffoon. Qaddafi had eviscerated his country,
the richest in Africa yet with an abysmally impoverished
EFTA_R1_00234071
EFTA01845125
population. In the interwar years, Libya had known savage
colonial rule under the Italians. It gained a brief respite under an
ascetic ruler, King Idris, but in the late 1960s was gripped by a
revolutionary fever. Iblis wa la Idris, went the maxim of the
time, "Better the devil than Idris." And the country got what it
wanted. Oil sustained the madness; European leaders and
American intellectuals alike came courting. Now, in 2011,
Benghazi, at some remove from the capital, rose up, and history
gave the Libyans a chance.
The Egyptian rulers had said that their country was not Tunisia.
Qaddafi said that his republic was not Tunisia or Egypt.
Eventually, Assad was saying that Syria was not Tunisia, Egypt,
or Libya. Assad was young, not old; his regime had more
legitimacy because it had confronted Israel rather than
collaborated with it. He spoke too soon: in mid-March, it was
Syria's turn.
Syria was where Islam had made its home after it outgrew the
Arabian Peninsula and before it slipped out of the hands of the
Arabs into those of the Persians and the Turks. Yet decades
earlier, Bashar al-Assad's father, Hafez -- a man of supreme
cunning and political skill -- had ridden the military and the
Baath Party to absolute power, creating a regime in which power
rested with the country's Alawite minority. The marriage of
despotism and sectarianism begat the most fearsome state in the
Arab east.
When the rebellion broke out there in 2011, it had a distinct
geography, as the French political scientist Fabrice Balanche has
shown, based in the territories and urban quarters of the
country's Sunni Arabs. It erupted in Dara'a, a remote provincial
EFTA_R1_00234072
EFTA01845126
town in the south, then spread to Hamah, Homs, Jisr al-
Shughour, Rastan, Idlib, and Dayr az Zawr -- skipping over
Kurdish and Druze areas and the mountain villages and coastal
towns that make up the Alawite strongholds. The violence in the
Syrian uprising has been most pronounced in Horns, the
country's third-largest city, because of its explosive
demographics -- two-thirds Sunni, one-quarter Alawite, one-
tenth Christian.
Sectarianism was not all, of course. Syria has had one of the
highest birthrates in the region, with its population having
almost quadrupled since Hafez seized power in 1970. The
arteries of the regime had hardened, with a military-merchant
complex dominating political and economic life. There was not
much patronage left for the state to dispose of, since under the
banner of privatization in recent years, the state had pulled off a
disappearing act. The revolt fused a sense of economic
disinheritance and the wrath of a Sunni majority determined to
rid itself of the rule of a godless lot.
WHERE THINGS STAND
There has, of course, been no uniform script for the Arab
regimes in play. Tunisia, an old state with a defined national
identity, settled its affairs with relative ease. It elected a
constituent assembly in which al Nanda, an Islamist party,
secured a plurality. Al Nanda's leader, Rachid al-Ghannouchi,
was a shrewd man; years in exile had taught him caution, and his
party formed a coalition government with two secular partners.
In Libya, foreign intervention helped the rebels topple the
regime. Qaddafi was pulled out of a drainage pipe and beaten
EFTA_R1_00234073
EFTA01845127
and murdered, and so was one of his sons. These were the
hatreds and the wrath that the ruler himself had planted; he
reaped what he had sown. But wealth, a sparse population, and
foreign attention should see Libya through. No history in the
making there could be as deadly to Libyans, and others, as the
Qaddafi years.
The shadows of Iran and Saudi Arabia hover over Bahrain.
There is no mass terror, but the political order is not pretty.
There is sectarian discrimination and the oddness of a ruling
dynasty, the House of Khalifa, that conquered the area in the late
years of the eighteenth century but has still not made peace with
the population. Outsiders man the security forces, and true
stability seems a long way off.
As for Yemen, it is the quintessential failed state. The footprint
of the government is light, the rulers offer no redemption, but
there is no draconian terror. The country is running out of water;
jihadists on the run from the Hindu Kush have found a home: it
is Afghanistan with a coastline. The men and women who went
out into the streets of Sanaa in 2011 sought the rehabilitation of
their country, a more dignified politics than they have been
getting from the cynical acrobat at the helm for more than three
decades. Whether they will get it is unclear.
Syria remains in chaos. Hamas left Damascus in December
because it feared being left on the wrong side of the mounting
Arab consensus against the Syrian regime. "No Iran, no
Hezbollah; we want rulers who fear Allah," has been one of the
more meaningful chants of the protesters. Alawite rule has been
an anomaly, and the regime, through its brutal response to the
uprising, with security forces desecrating mosques, firing at
EFTA_R1_00234074
EFTA01845128
worshipers, and ordering hapless captives to proclaim, "There is
no God but Bashar," has written its own regional banishment.
Hafez committed cruelties of his own, but he always managed to
remain within the Arab fold. Bashar is different -- reckless --
and has prompted even the Arab League, which has a history of
overlooking the follies of its members, to suspend Damascus'
membership.
The fight still rages, Aleppo and Damascus have not risen, and
the embattled ruler appears convinced that he can resist the laws
of gravity. Unlike in Libya, no foreign rescue mission is on the
horizon. But with all the uncertainties, this much can be said:
the fearsome security state that Hafez, the Baath Party, and the
Alawite soldiers and intelligence barons built is gone for good.
When consent and popular enthusiasm fell away, the state rested
on fear, and fear was defeated. In Syria, the bonds between the
holders of power and the population have been irreparably
broken.
WHAT FOLLOWS PHARAOH
Egypt, meanwhile, may have lost the luster of old, but this Arab
time shall be judged by what eventually happens there. In the
scenarios of catastrophe, the revolution will spawn an Islamic
republic: the Copts will flee, tourism revenues be lost for good,
and Egyptians will yearn for the iron grip of a pharaoh. The
strong performance of the Muslim Brotherhood and of an even
more extremist Salafi party in recent parliamentary elections,
together with the splintering of the secular, liberal vote, appears
to justify concern about the country's direction. But Egyptians
have proud memories of liberal periods in their history. Six
decades of military rule robbed them of the experience of open
EFTA_R1_00234075
EFTA01845129
politics, and they are unlikely to give it up now without a
struggle.
The elections were transparent and clarifying. Liberal and
secular forces were not ready for the contest, whereas the
Brotherhood had been waiting for such a historic moment for
decades and seized its opportunity. No sooner had the Salafists
come out of the catacombs than they began to unnerve the
population, and so they pulled back somewhat from their
extreme positions. The events in Tahrir Square transfixed the
world, but as the young Egyptian intellectual Samuel Tadros has
put it, "Egypt is not Cairo and Cairo is not Tahrir Square."
When the dust settles, three forces will contest Egypt's future --
the army, the Brotherhood, and a broad liberal and secular
coalition of those who want a civil polity, the separation of
religion and politics, and the saving graces of a normal political
life.
The Brotherhood brings to the struggle its time-honored mix of
political cunning and an essential commitment to imposing a
political order shaped by Islam. Its founder, Hasan al-Banna,
was struck down by an assassin in 1949 but still stalks the
politics of the Muslim world. A ceaseless plotter, he talked of
God's rule, but in the shadows, he struck deals with the palace
against the dominant political party of his day, the Wafd. He
played the political game as he put together a formidable
paramilitary force, seeking to penetrate the officer corps --
something his inheritors have pined for ever since. He would
doubtless look with admiration on the tactical skills of his
successors as they maneuver between the liberals and the
Supreme Council of the Armed Forces, partaking of the tumult
of Tahrir Square but stepping back from the exuberance to
EFTA_R1_00234076
EFTA01845130
underline their commitment to sobriety and public order.
The plain truth of it is that Egypt lacks the economic
wherewithal to build a successful modern Islamic order,
whatever that might mean. The Islamic Republic of Iran rests on
oil, and even the moderate ascendancy of the Justice and
Development Party, or AKP, in Turkey is secured by prosperity
stemming from the "devout bourgeoisie" in the Anatolian hill
towns. Egypt lies at the crossroads of the world, living off
tourism, the Suez Canal, infusions of foreign aid, and
remittances from Egyptians abroad. Virtue must bow to
necessity: in the last year, the country's foreign reserves
dwindled from $36 billion to $20 billion. Inflation hammers at
the door, the price of imported wheat is high, and the bills have
to be paid. Four finance ministers have come and gone since
Mubarak's fall. A desire for stability now balances the heady
satisfaction that a despot was brought down.
There are monumental problems staring Egypt's leaders in the
face, and the reluctance of both the Brotherhood and the armed
forces to assume power is telling. Good sense and pragmatism
might yet prevail. A plausible division of spoils and
responsibility might give the Brotherhood the domains of
governance dearest to it -- education, social welfare, and the
judiciary -- with the military getting defense, intelligence, the
peace with Israel, the military ties to the United States, and a
retention of the officer corps' economic prerogatives. Liberal
secularists would have large numbers, a say in the rhythm of
daily life in a country so hard to regiment and organize, and the
chance to field a compelling potential leader in a future
presidential election.
EFTA_R1_00234077
EFTA01845131
For two centuries now, Egypt has been engaged in a Sisyphean
struggle for modernity and a place among the nations worthy of
its ambitions. It has not fared well, yet it continues to try. Last
August, a scene played out that could give Egyptians a measure
of solace. The country's last pharaoh -- may it be so -- came to
court on a gurney. "Sir, I am present," the former ruler said to
the presiding judge. Mubarak was not pulled out of a drainage
pipe and slaughtered, as was Qaddafi, nor did he hunker down
with his family and murder his own people at will, as has Assad.
The Egyptians have always had, in E. M. Forster's words, the
ability to harmonize contending assertions, and they may do so
once again.
THE THIRD GREAT AWAKENING
This tumult, this awakening, is the third of its kind in modern
Arab history. The first, a political-cultural renaissance born of a
desire to join the modern world, came in the late 1800s. Led by
scribes and lawyers, would-be parliamentarians and Christian
intellectuals, it sought to reform political life, separate religion
from politics, emancipate women, and move past the debris of
the Ottoman Empire. Fittingly enough, that great movement,
with Beirut and Cairo at the head of the pack, found its
chronicler in George Antonius, a Christian writer of Lebanese
birth, Alexandrian youth, a Cambridge education, and service in
the British administration in Palestine. His 1938 book, The Arab
Awakening, remains the principal manifesto of Arab
nationalism.
The second awakening came in the 1950s and gathered force in
the decade following. This was the era of Gamal Abdel Nasser
in Egypt, Habib Bourguiba in Tunisia, and the early leaders of
EFTA_R1_00234078
EFTA01845132
the Baath Party in Iraq and Syria. No democrats, the leaders of
that time were intensely political men engaged in the great
issues of the day. They came from the middle class or even
lower and had dreams of power, of industrialization, of ridding
their people of the sense of inferiority instilled by Ottoman and
then colonial rule. No simple audit can do these men justice:
they had monumental accomplishments, but then, explosive
demographics and their own authoritarian proclivities and
shortcomings undid most of their work. When they faltered,
police states and political Islam filled the void.
This third awakening came in the nick of time. The Arab world
had grown morose and menacing. Its populations loathed their
rulers and those leaders' foreign patrons. Bands of jihadists,
forged in the cruel prisons of dreadful regimes, were scattered
about everywhere looking to kill and be killed. Mohamed
Bouazizi summoned his fellows to a new history, and across the
region, millions have heeded his call. Last June, the Algerian
author Boualem Sansal wrote Bouazizi an open letter. "Dear
Brother," it said,
I write these few lines to let you know we're doing well, on the
whole, though it varies from day to day: sometimes the wind
changes, it rains lead, life bleeds from every pore. . . .
But let's take the long view for a moment. Can he who does not
know where to go find the way? Is driving the dictator out the
end? From where you are, Mohamed, next to God, you can tell
that not all roads lead to Rome; ousting a tyrant doesn't lead to
freedom. Prisoners like trading one prison for another, for a
change of scenery and the chance to gain a little something
along the way.
EFTA_R1_00234079
EFTA01845133
"The best day after a bad emperor is the first," the Roman
historian Tacitus once memorably observed. This third Arab
awakening is in the scales of history. It has in it both peril and
promise, the possibility of prison but also the possibility of
freedom.
Fouad Ajami is a Senior Fellow at Stanford University's
Hoover Institution and Co-Chair of the Hoover Institution's
Herbert and Jane Dwight Working Group on Islamism and the
International Order.
Ankle 2.
NYT
The State of the Union in 2012
Editorial
January 24, 2012 -- A year ago, after the last State of the Union
address, we applauded President Obama for challenging the
Republicans' blame-government, slash-and-burn rhetoric. He
explained why Washington must do more to help put millions of
struggling people back to work and why any credible plan to
wrestle down the deficit must include the wealthy paying a fairer
share of taxes.
After a rough start to 2011, economic numbers have improved,
EFTA_R1_00234080
EFTA01845134
and Mr. Obama has pushed Congress to extend the payroll tax
cut and unemployment benefits and outlined an ambitious jobs
agenda. But the country's problems are profound. There are 13.1
million unemployed, and the risk of stagnation is real.
Republican candidates are pounding on the wrong, but
seductive, notion that the real problem is government spending
— especially on the "others," the poor and minorities.
Congressional Republicans have barely wavered in their
obstructionism.
Mr. Obama has become steadily more assertive, but he will have
to push even harder. The State of the Union address was a
chance to do that, and he did not squander it.
He sounded many of the same themes as last year, but his tone
was sharper and he was far more willing to apportion blame,
particularly singling out the financial industry for its excesses
and politicians who are still determined to defend tax cuts for
the rich and undo desperately needed financial regulations. "We
can either settle for a country where a shrinking number of
people do really well, while a growing number of Americans
barely get by," he said, "or we can restore an economy where
everyone gets a fair shot, everyone does their fair share, and
everyone plays by the same set of rules."
Mr. Obama's talk of "an economy built to last" was a bit too
folksy, but he is right that the country can't rely on some
invisible hand to develop a strategy to compete in the 21st
century. Washington must do a lot more to create good jobs, to
encourage new industries, to build the infrastructure to support a
vibrant economy and to address climate change and promote
energy independence.
EFTA_R1_00234081
EFTA01845135
The president's calls to deny tax breaks to companies that
outsource and provide a tax credit to companies that bring jobs
back home are good ones. The real challenge will be to ensure
that those repatriated jobs are good-paying jobs. The president
called for better job training and education, but a skills gap isn't
the main problem. Employers aren't going to do a lot more
hiring until consumers buy more products. Demand is unlikely
to recover until Congress agrees to more federal spending,
including aid to states for hiring.
Mr. Obama's idea to use half of the savings from winding down
the wars for public-works projects is laudable and could put
hundreds of thousands back to work. Republicans are sure to
insist that the money be used for deficit reduction, setting up
another battle to simply do the obviously right thing. Mr. Obama
has pushed banks and Congress to make it easier for borrowers
who are current in their payments to refinance. On Tuesday
night, he called — finally — for a full investigation of the
lending abuses that inflated the bubble and led to the crash. That
is the best hope for getting meaningful redress for borrowers.
In addition to his longstanding call to let the high-end Bush-era
tax cuts expire, Mr. Obama called for a "Buffett rule" to ensure
that millionaires pay an effective rate of at least 30 percent,
ensuring that they never pay less than the middle class. "You
can call this class warfare all you want," he said. "But asking a
billionaire to pay at least as much as his secretary in taxes? Most
Americans would call that common sense." We agree.
Over the last year, Americans have become more aware of the
deep inequities in the economy and of the government's
responsibility to act. Mr. Obama deserves some of the credit for
EFTA_R1_00234082
EFTA01845136
that, but it has a lot more to do with the unrelenting tough times
and the efforts of Occupy Wall Street and other protests. What
Americans want now is strong political leadership.
Ankle 3.
Wall Street Journal
The State of His Policies
Editorial
January 25, 2012 -- Obama has done nearly everything he
wanted. That's the problem.
President Obama delivered a State of the Union address Tuesday
night that by the account of his own advisers is more campaign
document than a plan for governing. He's running against
Republicans in Congress, Reaganomics, wealthy bankers and
inequality.
Normally a President at the start of his fourth year would be
running on his record, accentuating the legislation he's passed.
Mr. Obama can't do that with any specificity because the
economic recovery has been so weak and the legislation he has
passed is so unpopular. So last night he took credit for the shale
gas revolution he had nothing to do with and proposed new
policies to "spread the wealth around," as he famously told Joe
the Plumber in 2008 before he took the words back. We thought
he meant it then, and now he's admitting it.
Perhaps this will work if Republicans nominate a standard-
EFTA_R1_00234083
EFTA01845137
bearer who is damaged, or too cautious or guilty to challenge
this politics of envy. Mr. Obama clearly has Mitt Romney and
his 14% effective tax rate in his sights (see the editorial nearby).
The President will try to portray Mr. Romney as Mr. 1%, and if
the Republican settles for defending the current tax code, he will
lose. He needs a tax reform proposal of his own, as well as the
self-confidence to argue for it in the same moral terms that Mr.
Obama will attack him. Meantime, as Mr. Obama begins his
fourth year in power it's a good moment to recount the economic
record that he'd rather not talk about. The President inherited a
deep recession, but in political terms that should have been a
blessing. History shows that the deeper the recession, the
sharper the recovery, and Mr. Obama was poised by take credit
for the economy's natural recuperative powers. Instead, we've
had the weakest recovery since the Great Depression and
stubbornly high joblessness.
The nearby chart compares rates of quarterly growth during the
Reagan and Obama economic recoveries. The comparison is apt
because both recoveries followed deep recessions in which the
jobless rate reached more than 10%. Once the Reagan recovery
got cooking, in 1983, growth stayed above 5% for 18 months
and never fell below 3.3% for 13 consecutive quarters.
In the Obama recovery, growth has never exceeded 4% in any
quarter and fell off markedly in mid-2010 through the third
quarter of 2011. For the first nine months of 2011, growth
averaged less than 1.2%. The economy finally picked up again
in the fourth quarter, but still at a rate that is subpar for a
recovery that long ago should have become robust and durable.
As he runs for re-election, Mr. Obama is trying to campaign as
EFTA_R1_00234084
EFTA01845138
an incumbent who is striving to help the economy but has been
stymied at every turn by Congress. Not even MSNBC can
believe this. For two years he had the largest Democratic
majorities in Congress since the 1970s and achieved nearly
everything he wanted.
The New Yorker magazine this week has posted on its website a
57-page memo that economic adviser Larry Summers wrote to
Mr. Obama in December 2008. It lays out nearly his entire
agenda for the "stimulus," reviving housing, the auto bailout and
saving the financial industry. If anything, the memo overstates
what would be needed to stabilize the financial panic, but nearly
all of the stimulus spending priorities that the memo deemed
"feasible" made it into law. They simply didn't work as
promised.
The Pelosi Congress also passed ObamaCare, Dodd-Frank, cash
for clunkers, the housing tax credit, and much more. The only
Obama priority it didn't pass was cap-and-trade, which was
killed by Senate Democrats.
Mr. Obama's regulators also currently have some 149 major
rules underway, which are those that cost more than $100
million. The 112th Congress hasn't been able to kill a single
major rule. The most it has been able to do is extend the Bush
tax rates—which helped the economy by avoiding a tax
shock—and slow the rate of increase in federal spending. This
President has been "obstructed" less than anyone since LBJ.
Mr. Obama clearly has a spring in his step these days, figuring
that the public hates Congress and thinks Republicans run it,
that the GOP will field a weak presidential candidate, and that
EFTA_R1_00234085
EFTA01845139
he can fool the public into believing only Mitt Romney's taxes
will rise if Mr. Obama wins a second term. He has only one big
obstacle: his record.
Article 4.
Los Angeles Times
No joy in Egypt
Daniel Williams
January 25, 2012 -- As Egypt marks the first anniversary of the
Jan. 25 civilian revolt that eventually toppled the 30-year rule of
Hosni Mubarak, there's no agreement — on how to celebrate or
even whether rejoicing is in order. The current military rulers —
the Supreme Council of the Armed Forces, or SCAF — want to
hold parades and aerial jet exhibitions to exult in the revolution,
of which their main part was to ease Mubarak out of power.
Youth groups and democracy activists who originally
engineered the uprising are carrying on a campaign called "The
Generals are Liars," with mini-demonstrations and audiovisual
presentations in the streets documenting police and military
abuses. Islamic politicians, triumphant in recent parliamentary
elections, extol the military's role while pressing for an eventual
transfer of power to civilians.
As for human rights, though, just what do Egyptians have to
celebrate? Not all that much — a sad commentary on the
uprising in the Middle East's most populous country, one that is
a reference point for regional politics despite its poverty and
EFTA_R1_00234086
EFTA01845140
stagnation. Yes, Mubarak is on trial for the killings of protesters,
which is at least a symbolic repudiation of his oppressive reign.
Yes, Egypt held a free election for a new parliament in which
Islamic parties prevailed in competition with secular and liberal
slates. Yes, independent media work hard to bird-dog
government malfeasance. Yet, much of Mubarak's repressive
legacy has been preserved and even strengthened. SCAF rules in
his place and has indicated it should remain a power behind the
scenes, as it has for the 60 years since the overthrow of the
country's monarchy. Egyptians still live under the emergency
law — in place since the assassination of President Anwar Sadat
in 1981 — that permits bans on public assembly, indefinite
detention without charge, prosecution in special courts that
allow no appeal process and that are notorious for reliance on
confessions obtained under torture. On Tuesday, SCAF's
chieftain, Field Marshal Mohamed Hussein Tantawi, partially
lifted the 30-year state of emergency but said Egypt would
continue to apply the emergency law to cases of "thuggery."
Tantawi's gesture is far from sufficient. In the last year, military
tribunals have convicted hundreds of peaceful protesters on
charges of thuggery. During almost a year in power, SCAF has
liberally referred civilians to military courts, another practice of
the Mubarak years, though under him it was reserved for so-
called exceptional cases. Sometimes the magistrates have
announced a verdict before a trial began. The military has
arbitrarily arrested and convicted peaceful protesters, some of
whom remain imprisoned. Measures that date from Britain's
early 20th century domination of Egypt ban assemblies of more
than five people "that threaten the public peace." Although by
international standards, lethal force should be used only when
strictly necessary to protect life, under current Egyptian law,
EFTA_R1_00234087
EFTA01845141
police — who are effectively under SCAF control — possess
wide scope for shooting at demonstrators. The minister of
interior has broad discretion to decide on use of weapons and
what warnings need be given demonstrators before firing on
them. On Jan. 6, the Egyptian Initiative for Personal Rights, an
independent human rights organization, denounced a statement
by the interior minister that police will get bonuses for shooting
"thugs," government shorthand for demonstrators. Police
regulations are bad enough, but the actions of security forces —
both police and military — have been abominable. In October,
soldiers ran over demonstrators with armored cars and shot
them, killing 27 marchers at a Christian rally held to protest the
burning of a church. In November, at least 40 demonstrators
were killed by anti-riot forces during unrest in and around Tahrir
Square, the epicenter of protest. Police routinely beat
demonstrators, women included. Human Rights Watch has
documented torture and abuse of detainees by soldiers. Military
personnel carried out abusive "virginity tests" on women in
detention. Servile state media demonize opposition groups and
non-governmental organizations as subversive tools of dark
foreign forces. Laws endure that make citizens vulnerable to
prosecution for "insulting" speech or words "harmful" to morals
or tantamount to changing the existing political order. In March,
SCAF added a new wrinkle to restrictions on speech and
assembly by criminalizing strikes and demonstrations "that
impede public works." In April, a military court sentenced
young blogger Maikel Nabil Sanad to three years in prison for
"insulting the military establishment" when he criticized army
rule on his blog and Facebook page. SCAF said last weekend
that Nabil would be pardoned and released along with more than
1,900 other prisoners convicted in military trials. It was a
EFTA_R1_00234088
EFTA01845142
gesture in advance of the Jan. 25 holiday; Nabil shouldn't have
been arrested and convicted in the first place. Egypt seated a
new parliament on Monday. It should act quickly to wipe clean
the slate of laws that restrict free speech, association and
assembly and that permit police too much latitude to shoot
protesters. Members of the parliament should limit military
court jurisdiction to military officials and repeal the emergency
law. Egypt's foreign friends — including the aid-giving U.S.
government — should wholeheartedly support the reforms and
resist suggestions that continued dictatorship means stability.
With Egypt's revolution in its first stages, the time is now for the
parliament to end Egypt's long-term rule by military fiat.
Daniel Williams is a senior researcher in the emergencies
division of Human Rights Watch.
Article 5.
Foreign Policy
Why China's rise really is bad for
America -- and other dark forces at
work
Gideon Rachman
January 24, 2012 -- I have spent my working life writing about
international politics from the vantage points of the Economist
and now the Financial Times. Surrounded by people who
tracked markets and business, it has always felt natural for me to
EFTA_R1_00234089
EFTA01845143
see international economics and international politics as deeply
intertwined.
In my book Zero-Sum Future, written in 2009, I attempted to
predict how the global economic crisis would change
international politics. As the rather bleak title implied, I argued
that relations between the major powers were likely to become
increasingly tense and conflict-ridden. In a worsening economic
climate, it would be harder for the big economies to see their
relationships as mutually beneficial -- as a win-win. Instead,
they would increasingly judge their relationships in zero-sum
terms. What was good for China would be seen as bad for
America. What was good for Germany would be bad for Italy,
Spain, and Greece. Now, as the paperback edition of my book
comes out, the prediction is being borne out -- which is
gratifying as an author, although slightly worrying as a member
of the human race. The rise of zero-sum logic is the common
thread, tying together seemingly disparate strands in
international politics: the crisis inside the European Union,
deteriorating U.S.-Chinese relations, and the deadlock in global
governance. This new, more troubled mood is reflected at this
year's World Economic Forum. In the 20 years before the
financial crisis, Davos was almost a festival of globalization --
as political leaders from all over the world bought into the same
ideas about the mutual benefits of trade and investment and
wooed the same investment bankers and multinational
executives. At Davos, this year, the mood is more questioning --
with numerous sessions on rethinking capitalism and on the
crisis in the eurozone. The European Union is an organization
built around a win-win economic logic. Europe's founding
fathers believed that the nations of Europe could put centuries of
EFTA_R1_00234090
EFTA01845144
conflict behind them by concentrating on mutually beneficial
economic cooperation. By building a common market and
tearing down barriers to trade and investment, they would all
become richer -- and, eventually, would get used to working
together. Good economics would make good politics. The
nations of Europe would grow together. For decades, this logic
worked beautifully. But, faced with a grave economic crisis, this
positive win-win logic has gone into reverse. Rather than
building each other up, European nations fear that they are
dragging each other down. The countries of southern Europe --
Greece, Portugal, Italy, and Spain -- increasingly feel that they
are locked into a currency union with Germany that has made
their economies disastrously uncompetitive. For them, European
unity is no longer associated with rising prosperity. Instead, it
has become a route to crippling debt and mass unemployment.
As for the countries of northern Europe -- Germany, Finland,
and the Netherlands -- they are increasingly resentful of having
to lend billions of euros to bail out their struggling southern
neighbors. They fear that they will never get the money back,
and their own prosperous economies will be dragged down.
Now that France has lost its AAA credit-rating, Germany is left
as the only large AAA-rated country in the eurozone. Many
Germans feel that they have worked hard and played by the rules --
and are now being asked to save countries where people
routinely cheat on their taxes and retire in their fifties. From the
beginning of the crisis, Europe's politicians have argued that the
solution to a severe crisis within the EU was "more Europe" --
deeper integration. Unfortunately, their interpretation of what
this means is rather different and dictated by the singular nature
of their national debates. For the southern Europeans, "more
Europe" means Eurobonds -- common debt issuance by the
EFTA_R1_00234091
EFTA01845145
whole European Union that would lower their interest rates and
make it easier to fund their governments.. But the Germans
regard this as a dangerous pledge simply to underwrite their
neighbors' debts, long into the future. For them, "more Europe"
means stricter enforcement of budgetary austerity from the
center -- German rules for everybody. Over the next year, this
inherent contradiction is likely to cause increasing discord and
rivalry within the EU as the political argument plays out against
a deteriorating economic climate. Britain's refusal to go along
with a new European treaty at the December 2011 Brussels
summit led to screaming headlines about a continental divorce.
But it is likely to be just a foretaste of things to come. The
development to watch for in European politics will be the rise of
political parties that are more nationalist in tone and that take a
much more skeptical attitude to the European Union -- not to
mention the single currency. Marine Le Pen and the National
Front will do well in the upcoming French presidential election.
Other rising Euroskeptic parties include the Freedom Parties in
the Netherlands and Austria, the Northern League in Italy, the
True Finns in Finland, and a motley collection of far-right and
far-left parties in Greece. Ironically, this intensifying crisis in
Europe comes just at the time that the United States has decided
to readjust its foreign policy to concentrate much more on Asia
and Pacific. Although the "pivot to Asia" is being presented as a
far-sighted reaction to long-term economic trends, it also
represents an adjustment to a shift in the global balance-of-
power in the aftermath of the global economic crisis. Put
bluntly, the United States is taking the rise of China much more
seriously. American preeminence, long into the future, can no
longer be taken for granted. Nor can it be assumed that a
stronger, richer China is good news for America -- as successive
EFTA_R1_00234092
EFTA01845146
U.S. presidents argued all the way back to 1978. On the
contrary, both as individuals and as a nation, Americans are
getting the queasy feeling that a richer, more powerful China
might just mean a relatively poorer, relatively weaker America.
In other words, the rise of China is not a win-win for both
nations. It is a zero-sum game. That belief is now feeding
through into the presidential election -- and is reflected both in
the protectionist rhetoric of Mitt Romney and in the soft
containment of China of the Obama administration. Romney has
promised to designate China a "currency manipulator" and to
slap tariffs on Chinese goods. These kinds of arguments have
surfaced before, particularly during presidential elections -- but
they are not normally made by pro-business Republicans.
However, with America beset by worries about high
unemployment and a spiraling national debt, old nostrums about
free trade are easier to jettison. Missed in all the excitement of a
presidential election is the extent to which protectionism is
being intellectually rehabilitated in the United States. Respected
economists like Paul Krugman and Fred Bergsten have argued
that imposing tariffs would be a legitimate U.S. response to
Chinese currency policies. A similar shift is underway in
America's military and strategic thinking. The Obama
administration's much-ballyhooed Asian turn is essentially a
response to the rise of China. According to the Economist,
China is likely to be the world's largest economy (in real terms)
by 2018. And Washington sees Beijing as already flexing its
muscles, with increases in military spending and a harder-line in
border disputes with a range of neighbors, including India,
Japan, and Vietnam. As a result, the United States is seeking to
make common cause with China's nervous neighbors --
bolstering alliances with its traditional Asian allies, while
EFTA_R1_00234093
EFTA01845147
committing to strengthen its own military presence in the region.
This move is all the more significant since it comes in the
context of a plan to make deep cuts in overall U.S. military
spending.
The Chinese are not wrong to see this policy as essentially one
of "soft containment." They are unlikely to respond passively. A
new Chinese leadership -- under pressure from a nationalist
public -- might push back hard.
American-Chinese relations have long contained elements of
rivalry and co-operation. But, increasingly, the rival element
ℹ️ Document Details
SHA-256
464633cbe6637b239b4503205616f3181a83a705b8dfec35b94696b82409a9ef
Bates Number
EFTA01845120
Dataset
DataSet-10
Document Type
document
Pages
36
Comments 0