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Down With The Rouble

8th September 2008

If you want to read online the FT's distinguished Lex column, you have to pay for it.

But at least Lex shares with us for free a nifty graph on the rouble's fortunes up to and following the Kremlin's Georgia intervention:

Russia’s 1998 financial crisis, after which one foreign banker observed he would rather “eat nuclear waste” than invest in Russian securities, is still alive in the market’s collective consciousness. Billions of dollars flowing out of Russia and the central bank being forced to intervene last week to prop up the rouble inevitably put traders in a cold sweat.

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Grabbing Russian Oil Reserves

7th September 2008

This piece at the excellent Knowledge Problem neatly looks at differences between Chinese and Russian oil reserve management styles:

There are few assets more specific than an oil well. If you invest wisely today to maximize the present value of the well's future output, that does you no good if you're not around to claim those future flows (because, for instance, you're rotting in a jail in Chita.) So, to hell with the future-maximize what you can produce today, even though that impairs the well's long run value....

 

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Katherine Whitehorn Goes To Market

7th September 2008

This morning on the radio I stumbled upon veteran UK broadcaster Katherine Whitehorn's impossibly grand voice condescendingly calling into question the value of markets.

Here, if you can face it, is the full text of her Point of View.

Off she goes:

Political correctness has long been condemned, often unfairly, for the absurdity of always saying person rather than man or woman, for trying to be polite to minorities, or for refusing to call anyone top of the class for fear someone else weeps for being bottom.

But this isn't the real political correctness - what's really been the only politically correct thing to say under Mrs Thatcher, and under Tony Blair, is to assume that competition is better than co-operation, that it's the only useful spur to action.

On and on:

We are heading, it seems, for bad times such as we had in the 1970s. Then the main trouble was that the unions could disrupt anything and everything at will, and flabby management seemed unable to do anything about it.

But we still had the best broadcasting in the world, a health service which had only suffered two exasperating reforms, an education system widely respected and an efficient civil service not subject either to the stodginess or the questionable integrity of civil services elsewhere.

I have always thought history will find it odd that, in those circumstances, Britain decided to copy the practices of commerce, and model all its institutions on the thing it did worst.

Apart from the unremitting tedium of this Viewpoint, it is strange that KW pits 'competition' against 'cooperation', and that she appears to assume that 'cooperation' = state-owned/run organisations and them alone.

Competition is no enemy of cooperation. It usually expresses cooperation. It compels phenomenal examples of cooperation round the planet.

I have just been to Tesco. Every product of the myriad items sold there (including a lively Polish food section) has arrived there via sophisticated minute-by-minute cooperation between myriad firms and their myriad employees.

Or take YouTube and all the other 'community' sites now flourishing. What is that other than spontaneous cooperation arising from countless spontaneous competitions of designs and ideas between clever people and networks?

KW's trite mistake is to confuse hopelessly pricing mechanisms, public ownership and public control, private incentives and private ownership. The examples she gives are a mess.

Listen carefully, Katherine.

Any system incorporates incentives, positive and negative as well as implicit and explicit. Every activity has an opportunity cost - you can do only one thing at a time and therefore the 'cost' of doing that is the benefit foregone of not doing something else.

The main problem with state-run systems is that their incentive structures necessarily tend to be stagnant, limited and clumsy - hence the manic proliferation of 'targets' we now see, as an attempt to pep things up a bit.

Plus we see what we see, and measure what we can measure.

The NHS saves the lives of thousands of people every year, but who counts the opportunity cost of lives lost because the NHS does not offer certain treatments or pay for certain drugs?

As state-determined education - largely free from competition - steadily dumbs down exam and learning standards, who counts the opportunity cost of future jobs and opportunities lost because our children are too poorly educated to be fully effective as grown-ups?

So if you are saying that our beloved BBC, health service, civil service and education system are all now notably worse than in the 1970s, you might like to ponder the thought that maybe this is because the inefficiencies inherent in running massive systems in this way have compounded up alarmingly.

You can't seriously be saying that the trivial 'competition' elements battened on to these inefficient structures over the years (eg outsourcing cleaning in hospitals) have caused the problems you identify.

Can you?

Which is not to say that outsourcing cleaning is necessarily a good idea. It is good to promote loyalty within organisations from top to bottom.

But maybe again the proliferation of UK/EU officially-inspired regulations on 'health and safety' and other things themselves have created a context in which cost-incentives encourage managers to go for it?

Large-scale emergencies put everyone to the test. Does state-run 'cooperation' out-perform privately incentivised cooperation? Not necessarily.

And so on.

Ho hum.

No surprise I suppose that Ms Whitehorn is given such a prominent platform to ramble on in this feeble way against competition by the BBC, an organisation which raises its funding via a poll-tax on all TV viewers rather than by competing normally in the market-place.

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Animal, Vegetable, Mineral

6th September 2008

This posting on Russia/Kosovo/Georgia prompted a pointed comment from reader Will:

Your article seems to be another in a series of lame attempts to minimize Russia's responsibility for her actions in GA with a critique of the West's Kosovo policies. Am I wrong on this?

One point in which you are correct is that the two are incomparable: Russia's use of the latter as an excuse for her premeditated attack on her neighbour is just that. Motives do account for something and the West is on much more solid ground in this dept than the Russians.

Fascinating philosophy question: if X responds badly to your action and cites your action as a reason for that bad behaviour, how far are you responsible for what X does?

Seems to me that the answer depends on what you think of X - what you think X actually is.

Three scenarios:

Mineral:   you can take the long road round the base of the mountain, or attempt a short-cut across a steep slope covered in loose stones. You know that the stones may slip and cause damage to houses in the valley. You go for the short-cut. The stones slide and cause such damage.

You suspect that your footsteps prompted the mini-landslide. If they did, the stones simply made a Newtonian response to some or other physical force you exerted. They had no choice but to slide. You had no real options to calibrate the stones' response to your steps, other than not to attempt the slope at all.

Vegetable:   you decide not to weed the whole of the garden. Nasty weeds/brambles grow strongly in the most neglected areas, less strongly in the places where you keep nature at bay.

Here the response of the weeds/brambles is 'inanimate, but dynamic. Your actions do calibrate to a generally predictable extent what happens in which part of the garden. Your 'responsibility' is more subtle.

Animal:    you live in a nature reserve where some fierce bears roam. How far to avoid the bears? When you can not avoid them, act kindly towards them or beat them back?

You start to feed one bear in a kindly but wary fashion. One day he eats one of your pets. You whack him with a stick. He responds angrily by eating a neighbour's infant. Did you cause that tragedy to happen, not just by hitting the bear but by deluding yourself that a friendly relationship with the creature was possible and altering its consciousness..? 

* * * * *

All this is a convoluted way of pointing to the contradictions in much of the analysis about Russia and whether/why Western actions are 'provocative' to Moscow.

Do we treat Russia's 'fear of encirclement', 'insecurities' and 'anxieties' as, so to speak, inanimate facts of life over which we (and they) have no control other than to top-toe widely round them?

Or are they simple genetically coded facts of life which do respond in a predictable but insensate way to what we do?

Or are they animate/sensate facts of life, where we need keener judgement to get the response we want?  

Or are they human, even reasonable fears?

What if they are human but basically unreasonable paranoid fears?

The gushing Western punditry on Russia contains confusing contradictory elements of all these ideas.

Some people appear to suggest that Russia for reasons of obvious history/geography/Tsars/Communism/vodka has no choice but to behave the way it does. Safest is to adopt a Finlandish stance to avoid risking trouble.

Others argue that Russia of course does have choices, hence all the more reason to behave in a subtle respectful way: keep that bear calm and happy, even if he eats some of your rabbits now and again.

And then there are those who say that Russia of course makes its own decisions, but we have to strive to set a robust context in which they know that bad decisions have bad consequences for them. Eventually they will come to see that they have no more reason to fear 'encirclement' by democratic NATO states than eg Switzerland does.

To answer Will's question.  

I expected Russia to play tough in the CIS if key Western countries went ahead and recognised Kosovo as independent without having secured first a reasonable global consensus and in the face of explicit Russian objections.

NB this was separate from my view on whether and when Kosovo 'should' be independent, or whether Serbia 'deserved' to keep Kosovo.

The vital point was and is that the Kosovo independence issue is partly about Kosovo, but also about a bigger vision of global order. Acts of state recognition are at the very heart of diplomacy - it is a high risk strategy to mishandle them when a UN Security Council member is closely engaged and has Views.

I expected a tough Russian response not so much because Russia cares tuppence about Serbia or Kosovo - rather because Russia does care a lot about some other issues, whose handling turns on a sort of informal shifting balance of power as between differing accepted principles. This balance is not easily defined or articulated at any one moment, but top politicians and diplomats are paid to sense it and manage it. 

To conclude. It may look worthwhile to take a calculated risk. You know that your move can lead to a bad outcome, because you know that someone prone to lashing out may well lash out in response.

You move, and the lashing-out occurs.

You are not in any moral causation sense 'responsible' for that lashing-out when it occurs. Yet you can not complain much when people say you miscalculated somewhere. And you end up having to deal with the damage.

Some actions may be well motivated. Perhaps even Right.

But not, all things considered, Wise. 

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Polly Toynbee: Nutted By Reality

6th September 2008

Back in late 2005 Guardian prima columnista Polly Toynbee was urging the case for Gordon Brown to replace Tony Blair:

From now on, the economy will turn upwards and there is no need for Labour to panic - yet, of course, they will. Faced with bad polls, there will be growing pressure for Blair to announce his departure by next autumn's party conference.

... Labour's man needs to arrive as fresh, surprising and progressive as Cameron now seems. People worry how this puritanical and somewhat dour chancellor can stand up against the ebullient, debonair young prince. But age and style have nothing to do with it. It is the brightness and the content of their policies that matters.

And, lo, in 2007 it came to pass that Gordon Brown was poised to become Prime Minister:

A 10-year chancellor must leap out of the starting gate like a fresh contender. He must electrify the stale air with new ideas and new directions strong enough to reach right down to these jaded roots. That takes high voltage jolts of surprise and optimism.

Then, it happened!

There was something stunned about Gordon Brown's expression as he stood on the threshold of No 10. He looked genuinely awestruck, as if the hugeness of the weight that had just fallen on his shoulders had taken him by surprise.

Mere weeks later it was all going wrong:

There is a stunned disorientation among Labour MPs, alarmed by both Brown's vision void and his sudden incompetence ... The backbenches sat through Darling's politics-free performance on Tuesday like the Animal Farm beasts gazing through the farmer's window in the final scene. Far too late they realised something awful was happening before their eyes: you could have cut their silence with a knife.

Then it was all down:

Maybe he hasn't the character, the toughness, the fibre, the daring. He was always the Macbeth who failed to wield the knife. In those waiting, plotting years of half-cocked conspiracies, a Lady Macbeth would often have shouted: "Infirm of purpose!"

And down:

A year ago, this week's cornucopia of good policies would have signalled the truth of Gordon Brown's words as he stood outside Downing Street and said: "Let the change begin." If these had been his opening salvos, if these had signalled his clear direction of travel, he might not now be sinking fast ... Now it is late, a whole year too late. Is anyone still listening?

Which brings us to today:

The smell of death around this government is so overpowering it seems to have anaesthetised them all. One bungle follows another and yet those about to die sit silently by...

Unseating a prime minister is very high risk - but a dying party should be ready to take dangerous medicine if that's the last chance left.

On 29 June 2007: as they stepped into No 10 yesterday, here was as decent and clever a team of ministers as ever graced the cabinet table.

Now they are ... a cabinet of minnows.

It's tough being a cheer-leader, waving those glittery pom-poms and smiling brightly as your team collapses and the crowd laughs both at the players - and at you.

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"We Need Some Credentials"

6th September 2008

Jon Worth has a couple of thoughtful observations on the farcical European Parliament report which broods on the disruptive role of bloggers.

I think that he has a point, of sorts. But the best way to deal with vampires when they pop out is not to assume they are unmenacing just because they are pallid and sickly. Rather nail them briskly to the floor with a wooden stake.

Above all, he ignores the fact that reports such as this - paid for by us victims - tend to help define the European psychological and political-moral debate over media issues, ensuring that it plays out in a context which starts from an instinct for EU/state-sponsored official 'balance', rather than an instinct for freedom.

Look at the hapless socialist Estonian MEP who launched this dire exercise, trying to explain herself:

Speaking to the EUobserver, Ms Mikko clarified her intentions: "We (sic) do not need to know the exact identity of bloggers. We need some credentials, a quality mark, a certain disclosure of who is writing and why. We need this to be able to trust and rely on the source."

"The Economist is a valuable brand, its articles are trusted by readers without contributors having to reveal their names," she said. "If there is a way to validate the best bloggers the same way that publishing in the Economist validates its writers, it should be done."

"It is clear that a Harvard professor of international relations is likely to treat, for instance, the Middle East peace process or European integration in an educated and balanced manner," she added. "The same trust cannot be put in a radical high school student from Gaza or a Eurosceptic who has never been out of his village"

"The reader should know why this or that blogger should be trusted on a particular issue."

Almost every word she says here is profoundly, unfathomably stupid.

Above all there is a way to 'validate' the best bloggers.

It's called the marketplace, millions of judgements by millions of people, evolving over time, exploring what makes sense and what does not.

This tragic woman needs a strong coffee in Cafe Hayek - where orders emerge.

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On The Frontier

4th September 2008

In the tsunami of commentary on the Sarah Palin speech, this piece by Michael Ledeen is interesting for non-Americans (and maybe for many Americans too):

... For the first time in memory, we have a major candidate who comes from the frontier, and it’s not surprising that the pundits are having a hard time coming to grips with this phenomenon. For Sarah Palin’s world is not defined by the major media or by the glossy magazines; she hunts and fishes, she’s unabashedly patriotic, her son is in the Army, her husband races across the snow...

... It’s not so much authenticity as independence, and self-reliance, which have always been the basic characteristics of frontier people. They think for themselves. They have to think outside the box, because there’s no available box for them to think in. 

... They’re not big on “conflict resolution,” they prefer zero-sum games. If you go up against a grizzly, you’re poorly advised to look for a win-win solution.

Just what I have found.
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A Muslim Woman's Right To Choose

4th September 2008

On the subject of feminism, here is Naomi Wolf gushing on the psychological gains to be had from shrouding her body, Muslim woman-style:

I experienced it myself. I put on a shalwar kameez and a headscarf in Morocco for a trip to the bazaar. Yes, some of the warmth I encountered was probably from the novelty of seeing a Westerner so clothed; but, as I moved about the market - the curve of my breasts covered, the shape of my legs obscured, my long hair not flying about me - I felt a novel sense of calm and serenity. I felt, yes, in certain ways, free.

More:

...many Muslim women I spoke with did not feel at all subjugated by the chador or the headscarf. On the contrary, they felt liberated from what they experienced as the intrusive, commodifying, basely sexualising Western gaze.

Puh-lease.

Luckily Naomi did not wear her gloomy garb in intrusive, commodifed, basely sexualising Egypt:

Sexual harassment of women in Egypt is on the increase and observing Islamic dress code is no deterrent, according to a survey published this week.

The Egyptian Centre for Women's Rights (ECWR) describes the problem as a social cancer and calls on the government to introduce legislation to curb it. The findings contradict the widely held belief in Egypt that unveiled women are more likely to suffer harassment than veiled ones.

All this makes me recall the former Pretoria regime's reasoning for apartheid.

They insisted that Africans would be much better off, able to develop their authentic ways and customs, if living separated in their own tribal homelands. Separate but equal.

Of course the world howled with derision when Pretoria paraded various homeland leaders who said they agreed with all this. Why, said the world, should these people be taken seriously when they have no reasonable chance to choose the system they live under?

Back to Naomi:

I do not mean to dismiss the many women leaders in the Muslim world who regard veiling as a means of controlling women. Choice is everything. But Westerners should recognise that when a woman in France or Britain chooses a veil, it is not necessarily a sign of her repression.

In most 'Muslim' countries women have no vote and diminished civil rights. Is their acceptance of the fact that they cover up but men do not in any sense capable of being accepted as a fair choice?

In Western countries too, how far in fact are Muslim women free to choose to dress in a way unlikely to please their local ethno-religious community'?

Free choice?

Or a pseudo-choice defined by their false-consciousness imposed by systemic patriarchal gynocidal repressed male violence?

So, Naomi, tell us.

How can we tell when a woman choosing a veil in any country is not a sign of her repression?

Update: how about a woman's right to choose a husband?

An American Woman's Right To Choose

4th September 2008

Paleofeminist Gloria Steinem is unimpressed with Sarah Palin:

The culprit is John McCain. He may have chosen Palin out of change-envy, or a belief that women can't tell the difference between form and content, but the main motive was to please right-wing ideologues; the same ones who nixed anyone who is now or ever has been a supporter of reproductive freedom...

Palin's value to those patriarchs is clear: She opposes just about every issue that women support by a majority or plurality. She believes that creationism should be taught in public schools but disbelieves global warming; she opposes gun control but supports government control of women's wombs; she opposes stem cell research but approves "abstinence-only" programs, which increase unwanted births, sexually transmitted diseases and abortions; she tried to use taxpayers' millions for a state program to shoot wolves from the air but didn't spend enough money to fix a state school system with the lowest high-school graduation rate in the nation; she runs with a candidate who opposes the Fair Pay Act but supports $500 million in subsidies for a natural gas pipeline across Alaska; she supports drilling in the Arctic National Wildlife Reserve, though even McCain has opted for the lesser evil of offshore drilling...

Phew. Not only that, Palin must be a nasty sexist, seemingly having no view on government control of men's wombs.

Have a look at the tumultuous comments.

It seems safe to say that for hard-core US feminist Democrats a woman's right to choose to go with the further reaches of the liberal-leftist Democrat agenda (as defined by themselves) is the only choice deserving respect.

As usual Camille gets it.

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Climate Changes

2nd September 2008

Aaaargh.

Reckless carbon use on Earth is now having worrying ramifications at the heart of solar system, viz the Sun.

Please governments. Tax us higher to pay for all those schemes to deal with these problems, otherwise all is lost.

One thing is utterly clear.

The Earth is set to get either warmer or cooler.

Definitely.

Yet Another Ambassador on Georgia

2nd September 2008

The Times has two noteworthy pieces on Georgia and its ramifications today.

Bronwen Maddox weighs in on the EU's defiant chihuahua-like stance:

... even though the EU should rightly settle for the lowest common denominator on such important questions of its own identity, the proposals were weak beyond parody. “The Union will remain vigilant,” a version of the text said yesterday, adding that the review “may lead to decisions on the continuation of discussions on the future of relations between the Union and Russia in various areas”.

Yap!

Sir Christopher Meyer (formerly HM Ambassador in both Bonn and Washington) throws in some provocative if not eccentric observations, arguing that the best way forward for Europe is to go back to 'spheres of influence' of the sort agreed at the Congress of Vienna in 1815.

Christopher (as befits a distinguished former FCO Press Secretary) has some excellent lines:

The supreme fallacy in foreign policy is to take the world as we would wish it to be and not as it actually is. In Britain's case, the delusion is compounded when we are powerless to effect the outcome we desire. This has been particularly the case with Russia, where we have managed to be both impotent and provocative.

If we really want to put a halt to bad Russian behaviour, let us do so where we can make a difference, and where it is justified - starting with the expulsion of the vast nest of Russian intelligence officers in London, as Labour and Conservative governments did not hesitate to do in the 1970s...

...The Russia that we are dealing with today, with its fear of encirclement, its suspicion of foreigners and natural appetite for autocracy, is as old as the hills, long pre-dating communism. It is a Russia that will never be reassured by the West's protestations of pacific intent as it pushes Nato and the EU ever eastwards.

Most important of all, Russia and the West need to draw up rules of the road for the 21st century. Mr Miliband and others have condemned the notion of returning to the geopolitics of the Congress of Vienna which, in 1815 after the Napoleonic Wars, divided Europe into spheres of influence between empires and nations. They perhaps forget that what was agreed at Vienna held at bay for almost a century a general European war.

Something similar is needed today, based again on spheres of influence. Nato must renounce the provocative folly of being open to Georgian or, worse, Ukrainian membership. This strikes at the heart of the Russian national interest and offers no enhanced security to either Tbilisi or Kiev. As for Russia, it must be made unambiguously clear where any revanchist lunge westwards would provoke a military response by Nato.

Oh dear.

Next year is the 70th anniversary of the most recent attempt to divide Europe into 'spheres of influence', ie the Molotov/Ribbentrop Pact. That did not work out so well.

More generally, why do intelligent Western commentators emit as if on autopilot the cliché about Russia's 'fear of encirclement'?

Goddamit, Russia sprawls across 11 time zones. Its 17m square kilometres  'encircle' much of the planet.

A country that size has a lot of neighbours, many of whom have good reason to be uneasy about the weight of Russia bearing down on them. Why oh why do the alleged anxieties of Russia mesmerise us more than those of everyone else, especially when history shows Russians dumping mercilessly on smaller nationalities and not the other way round?  

Keep an eye too on absolute economic weight.

Thus EU and USA GDPs combined amount to some 70 million million US dollars (nominal).

Russia with all its oil wealth has a puny 1.3 million million or so of GDP, notably less than Spain.

Scary, huh?

The problem with the Meyerish analysis is that 'Russia's national interest' (as assiduously choreographed by generations of Communists and now Putinist Communists-Lite) defines itself as including a right to subjugate/humiliate/oppress anyone in the neighbourhood.

So, with whom do we side?

The bully swaggering round a big corner of the global schoolyard? Or the little kids he duffs up on his rounds?

Does that bully really deserve his own 'sphere of influence' which he himself chooses?

The EU appears to find that question All Too Difficult.

Here is a foreign policy classic moment:

"We have to find a balance. The balance is between tough talk and economic consequences. My stance is yes to tough talk. No to economic consequences," said Alexander Stubb, Finland's foreign minister.

The point, of course, is that tough talk backed by no consequences (economic or otherwise) is not in fact tough.

It is merely a passing silly noise.

Full of sound, but no fury. And signifying nothing much.

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Other Ambassadors On Kosovo/Georgia

1st September 2008

Jaded as you must be by my extensive offerings on the Kosovo/Georgia/Russia saga, you might care to look at the related (and vigorous) thoughts of three other former FCO Ambassadorial colleagues:

Sir Ivor Roberts:

How can the West talk of the need to maintain an independent state's territorial integrity and to refuse to countenance forcible changes of borders when that is exactly what the US and most of the EU countries condoned in recognising Kosovo -- against Serbia's will, and in the absence of any Security Council Resolution allowing it? To argue that Kosovo is unique is facile. Each potential secession is special, with its own often violent history ... Be careful what you wish for, says the old adage.

Brian Barder: 

It's too late to undo those Kosovo mistakes now, but it's not too late to begin to recognise them as mistakes and to try to learn some lessons from them in our future approach to Georgia (and Ukraine) in relation to Russia. 

And Craig Murray:

Agreed separations like the Czech and Slovak are no problem, but there is no fixed law for a region wishing to separate against the wishes of the state it is in. Quite simply it depends on having the political clout to get the UN to agree.

North Cyprus is a de facto state which never managed to pull this off, and seems a good parallel for the likely future of Abkhazia and South Ossetia. Many "Western" states are deeply wary of acknowledging separatists for their own internal reasons - Canada and Spain being good examples.

The Chechen case is important, because it illustrates both Putin's extreme ruthlessness, and the fact that Russia has no principle on its side. Russia supports or opposes the rights of separatists purely as they benefit Putin's aims to expand Russian influence.

I agree with some of what they each say and disagree with plenty.

A reader on one of my posts writes:

Your article seems to be another in a series of lame attempts to minimize Russia's responsibility for her actions in GA with a critique of the West's Kosovo policies. Am I wrong on this?

This is a core point, and (I think) where I part company from my colleagues as above. What exactly are the policy and (as it were) psychological links between Kosovo and Georgia, if any?

That needs a new post to do the subject full justice.

To be continued after I have walked the dog...

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Doing The Impossible

31st August 2008

Stories of stunning human achievements are always inspiring.

But, facile as we usually are, we tend to dwell on 'immediate' visible triumphs in eg sport or the arts, and to ignore the mind-boggling successes of engineers and scientists.

So have a look at this fine article from 2005 to help correct the balance.

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Ralph Waldo Emerson On Kosovo/Georgia

31st August 2008

Welcome Instapundit readers.

David Miliband puts forward the best available case for why the Kosovo precedent has no bearing on the Georgia case:

Some argue that Russia has done nothing not previously done by Nato in Kosovo in 1999. But this comparison does not bear serious examination.

Leave to one side that Russia spends a lot of time arguing in the UN and elsewhere against "interference" in internal affairs, whether in Zimbabwe or Burma. Nato's actions in Kosovo followed dramatic and systematic abuse of human rights, culminating in ethnic cleansing on a scale not seen in Europe since the second world war. Nato acted over Kosovo only after intensive negotiations in the UN security council and determined efforts at peace talks. Special envoys were sent to warn Milosevic in person of the consequences of his actions. None of this can be said for Russia's use of force in Georgia.

The decision to recognise Kosovo's independence came only after Russia made clear it would veto the deal proposed by the UN secretary general's special envoy, former Finnish President Ahtisaari. Even then we agreed to a further four months of negotiations by an EU-US-Russia troika in order to ensure that no stone was left unturned in the search for a mutually acceptable compromise.

It is easy enough to draw clear factual and policy distinctions between Georgia and Kosovo. Comparing them is stupid!

And yet some not obviously stupid people do compare them:

President Dmitry Medvedev has declared that Russia formally recognises the independence of the breakaway Georgian regions of South Ossetia and Abkhazia.

Mr Medvedev told the BBC Russia had tried to preserve Georgian unity for 17 years, but that the situation had changed after this month's violence ... Moscow now felt obliged to recognise South Ossetia and Abkhazia as other countries had done with Kosovo.

The Point is this.

It is trite to identify similarities and differences between the Kosovo and Georgia precedents. Rummage around in these issues and you'll find what you're looking for.

The actual 'Kosovo precedent' is not about the merits of the specific case(s). It is about the unwisdom of launching a lunge at Kosovo recognition in the face of serious objections within the EU and round the planet.

Kosovo's failure to establish itself quickly and uncontroversially as an independent state recognised round the world is remarkable. Kosovo declared its independence in February this year. Since then a mere 46 UN member states have recognised it. The absence from that list of all the big hitters in the Muslim world (Egypt, Saudi Arabia, Pakistan, Syria) not to mention India and China is especially striking.

After the initial flurry only four more countries have signed up since May. It is hard to think of a comparable example of a significant body of states recognising a new member of the international fold, but a much greater number not doing so.

This shows up a Deep Issue. The countries of the world are a disparate, squabbling lot, but they do take one (for them) existential issue supremely seriously. When is a country a country? Who joins the Countries Club, and on what terms?

The diplomatic practice in past decades has been based on the operational wisdom of establishing a wide consensus before admitting new members to the Club. And of ensuring that UNSC permanent members are at one - see eg Taiwan.

The Miliband article glosses over the problems which he knew were bound to be caused by proceeding with Kosovo recognition in the face of a strong Russian objection and evident Chinese/Indian unhappiness.

See eg this:

U.S. Secretary of State Condoleezza Rice, travelling in the Middle East, said Russia's decision to recognize the regions puts it in opposition to several UN Security Council resolutions to which it is a party.

"I want to be very clear," Rice said. "Since the United States is a permanent member of the (UN) Security Council, this simply will be dead-on-arrival in the Security Council" ...

But the US and UK as fellow UNSC members did not respect Russia's objections when pressing ahead with Kosovo recognition, even though Russia had made it unambiguously clear that pursuing such recognition would have 'implications' for eg Georgia.

In short, Washington and London were struck by (and yielded to) the intensity of tiny Albanian nationalism, but underestimated the intensity of far mightier Russian nationalism. I warned London myself about this risk several times as HM Ambassador in Poland. To no avail.

In all the weary meanderings under New Labour about the UK's foreign policy objectives/targets/priorities and (now) Policy Goals, is not this a comprehensive - and unforgivable - blunder of basic professional technique?

How will the mass of states round the world react now?

Most will be privately aghast at Russia's banal power-play to dismember Georgia.

Some may think that this is a reason to move to recognise Kosovo but not Abkhazia and S Ossetia, as a gesture of protest against crass Russian land-grabbing beyond its borders.

But I suspect that the great majority will keep avert their eyes from this shambles, torn unhappily between deriving private satisfaction from the unedifying disagreements between UNSC members on this core international law issue - and fervently hoping that violent separatist urges in their own respective parts of the world are not given new impulses.

Gordon Brown: the changing global order cannot be governed by institutions designed in the middle of the last century. We now know how much more we have to do to create an effective system of international rules. We must strengthen the system of global governance to meet the challenges of our interdependent world.

This windy rhetoric makes no sense. We all have invested in the UN system for decades, precisely to do this.

But let's be honest. Our own clumsy Balkans policy based on scissors and paste improvisation at the UN has messed things up.

A foolish consistency is the hobgoblin of little minds, adored by little statesmen and philosophers and divines (Ralph Waldo Emerson).

Foolish inconsistency is not much better.

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Chess v Monopoly

30th August 2008

Russia has responded ingeniously to the argument that its forces should leave Georgia - by redefining Georgia!

Having announced that Russia recognises the independence of Abkhazia and South Ossetia as independent states, Moscow now can say that its troops on the ground in these territories are no longer in Georgia. Howzat?

As and when needed it also has the option of proclaiming some sort of a new 'union' of these territories with Russia, so that any attack on them is an attack on Russia itself.   

Sorted?

Recognising the 'independence' of Abkhazia and South Ossetia needs international support. And Moscow is off to a strong start, with Hizbollah, Syria and Belarus looking to be on side.

This manoeuvre gives Russia a veneer of international law legitimacy at least one molecule thick. But that, combined with Facts on the Ground, might be enough for the Kremlin's immediate purposes:

"Hey, Kosovo has not been recognised by anything close to a majority of states round the world. Nor have S Ossetia and Abkhazia. What's the difference?"

Meanwhile is Russia playing chess while the Americans are playing Monopoly? Thus:

The board game Monopoly is won by placing as many hotels as possible on squares of the playing board. Substitute military bases, and you have the sum of American strategic thinking.

America's idea of winning a strategic game is to accumulate the most chips on the board: bases in Uzbekistan and Kyrgyzstan, a pipeline in Georgia, a "moderate Muslim" government with a big North Atlantic Treaty Organization base in Kosovo, missile installations in Poland and the Czech Republic, and so forth. But this is not a strategy; it is only a game score.

However:

Russia is fighting for its survival, against a catastrophic decline in population and the likelihood of a Muslim majority by mid-century. The Russian Federation's scarcest resource is people. It cannot ignore the 22 million Russians stranded outside its borders after the 1991 collapse of the Soviet Union, nor, for that matter, small but loyal ethnicities such as the Ossetians. Strategic encirclement, in Russian eyes, prefigures the ethnic disintegration of Russia, which was a political and cultural entity, not an ethnic state, from its first origins.  

... like a good chess player, Putin has the end-game in mind as he fights for control of the board in the early stages of the game. Demographics stand at the center of Putin's calculation, and Russians are the principal interest that the Russian Federation has in its so-called near abroad. The desire of a few hundred thousand Abkhazians and South Ossetians to remain in the Russian Federation rather than Georgia may seem trivial, but Moscow is setting a precedent that will apply to tens of millions of prospective citizens of the Federation - most controversially in Ukraine.

What if this is at least plausible? That Russia wants to redefine the post-Cold war settlement by scooping within its borders most Russians left adrift when the Soviet Union collapsed?

There are two ways to achieve this.

  • Crank up separatist plebiscites in Kazakhstan and Ukraine where the largest Russian communities live, then push through partition. Absorb Belarus one Sunday afternoon. Brutal - but potentially decisive.
  • Or try to force Kazakhstan and Ukraine into some sort of more explicit formal union with Russia so that all their respective dealings with the USA/EU are conducted on Russian terms - no more creeping Westernisation or 'Europeanisation'. Less brutal, less decisive.

Maybe even Putin's Moscow does not have the nerve for the unheavals which entering such unfathomable complications would create.

So instead for now it can keep the game in a state of dynamic imbalance. Grab a couple of pawns from Georgia and leave the threat that this is part of a wider ruthless strategy hanging menacingly over the board?

Foreign Policy.

On a Grand Scale.

PSPS

20th August 2008

This reads well:

Imagine what modern Europe would look like now if Poland had the political status of Georgia, lying in some sort of political-moral twilight zone with former Soviet interests linked to the KGB having a far freer time to penetrate into that society and play games with Polish assets.

As does this:

NATO membership brings with it unyielding civilian control of the military. Far greater transparency in everything, including budgets and procurement. No more GRU-style military secret police subverting and spying on their own political processes. Reasonable good faith attempts to work together to look back into history to cast full light on possible past abuses (Katyn). No more bombastic obnoxious military rhetoric shaping public life.

Not all this is perfect or implemented overnight or at all. But much of it is. That compounds up over time into a powerful package, with deep policy and moral implications for the way society as a whole is run.

It represents a sense of respecting Limits on Power, the far opposite of what these countries experienced under Soviet rule.

This is why Polish democrats were so keen to get Poland into NATO, in the face of energetic former communist objections. The Poles opted for Democracy against Communism. And good grief, how right they were to do so.

More brilliant insights here.

This analysis explains why Poland and the USA have signed the Missile Defence deal. It is about state of the art military hardware, but (no less importantly) about demonstrating that Poland is not part of Post-Soviet Psychological Space (PSPS). Well done Kaczynski/Tusk. 

PSPS is a fascinating phenomenon. It has no trace of the universalist Marxist claims which gave some spurious legitimacy to the USSR's positions in the Cold war. Rather it is all about Russia and Russians, not offering much to non-Russians.

A new doctrine is being articulated by the current Moscow leadership. Namely that Russia reserves the right to intervene as it sees fit to 'defend' its citizens anywhere, but especially in the former Soviet space.

Sounds scary. But is it going to be deliverable in practice?

The self-serving Russian attempt to rewrite the rules of international order in Georgia is starting to look like an embarrassing blunder, as even many Bambi-like European countries who normally would want to keep their heads down are obliged to stare aghast at Russia's self-absorbed violence spilling beyond its borders.

Plus, of course, anti-Americans in European capitals and indeed in the USA are reeling. Russian lunges into the territory of small neighbours really can't be blamed on President Bush or American imperialism.  And US leadership with some energetic help from the British government is knocking NATO into a somewhat better position. (Note: US voters still like the idea of US leadership.)

In due course Ukraine will move from Awkward to Very Difficult. A large European country where many people speak Russian and feel Russian, but many more want to turn their backs firmly on Soviet attitudes and practices as championed these days by Moscow. The EU hitherto has tried to avoid being 'confrontational' over Ukraine. That position is unlikely to be tenable in the no-so long term.

Elsewhere in the rather less European parts of the CIS, even the leaders who choose subservience to Moscow over substantive pluralism must be wondering what their future holds. Pretending to taking orders at interminable CIS banquets is one thing - being invaded is another.

The basic problem for the Russian leadership is that by defining Russia's interests in such banal psychological/political terms, they give too many people a reason to want not to be in it.

At least everything is uncharacteristically clear.

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Russian Joker

19th August 2008

Foreign Secretary David Miliband spells out the UK position on Georgia:

The Georgian crisis is about more than vital issues of humanitarian need and rule of law over rule of force. It raises a fundamental issue of whether, and if so how, Russia can play a full and legitimate part in a rules-based international political system, exercising its rights but respecting those of others...

... Russian mind games on withdrawal do them no credit...

... International law must be obeyed. This goes to the heart of the question of how Russia comes to terms with its past, and how it sees its future; above all, whether it recognises that the old frontiers of the Soviet Union are now history, and whether Russia sees its future as part of a rules-based international system.

That sort of analysis rests on certain ... psychological assumptions.

One of them is that the reply will not be something like this:

The only sensible way to live in this world is without rules.

Do we really look like a country with a plan? We don't have a plan.

The EU has plans, the World Bank has plans. You know what we are, West? We're a dog chasing cars. We wouldn't know what to do if we caught one. 

We just do things. We're a wrench in the gears. We hate plans. Yours, theirs, everyone's.

Schemers trying to control their worlds. We are not a schemer. We show schemers how pathetic their attempts to control things really are.

So when I say that what happened to Georgia, your girlfriend, wasn't personal, you know I'm telling the truth.

You guys in the West were schemers. You had plans. Look where it got you.

I just did what I do best. I took your Kosovo plan and turned it on itself. Look what I have done to this small country with a few tanks and a couple of bullets.

Nobody panics when the expected people get killed. Nobody panics when things go according to plan, even if the plans are horrifying. If I tell the Western media that tomorrow a gangbanger in Nagorno-Karabakh will get shot or a truckload of soldiers in Chechnya will get blown up, nobody panics.

But when I say one little country will get a small invasion, everyone loses their minds!

Introduce a little anarchy, you upset the established order, and everything becomes chaos. We are an agent of chaos.

And you know the thing about chaos, West? It's fair.

Hmm. Doesn't this sound ... familiar?

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More Bad News For Europe?

16th August 2008

As if the EU's ambiguous response to the Georgia crisis was not depressing enough, life is getting tougher on the economic side too in Europe:

The eurozone as a whole shrank by 0.2pc, the first contraction since the launch of the single currency a decade ago. Germany led the slide with a fall of 0.5pc. France and Italy fell 0.3pc. The delayed effects of the strong euro, tight credit, and slowing exports have now kicked in with a vengeance.

Problems for my own British-based budget as we sit in muggy Orlando:

The pound could soon dive to barely more than a dollar and a half while gold prices plunge to $650, experts predicted yesterday amid fresh evidence that the commodity boom is ending and the dollar's resurgence is under way.

But whereas the UK can hope to use its currency as a set of buffers, the Eurozone faces much more searching internal strains:

... the euro is nothing like the dollar. It has no European government, tax, or social security system to back it up. Each member country is sovereign, each fiercely proud, answering to its own ancient rythms.

It lacks the mechanism of "fiscal transfers" to switch money to depressed regions. The Babel of languages keeps workers pinned down in their own country. The escape valve of labour mobility is half-blocked. We are about to find out whether EMU really has the levels of political solidarity of a nation, the kind that holds America's currency union together through storms.

My guess is that political protest will mark the next phase of this drama. Almost half a million people have lost their jobs in Spain alone over the last year. At some point, the feeling of national impotence in the face of monetary rule from Frankfurt will erupt into popular fury. The ECB will swallow its pride and opt for a weak euro policy, or face its own destruction.

Gulp. 

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Georgia: Chess Moves

16th August 2008

Michael Binyon deploys chess metaphors to describe Russia' s military push into Georgia:

Vladimir Putin lost several pawns on the chessboard - Kosovo, Iraq, Nato membership for the Baltic states, US renunciation of the ABM treaty, US missiles in Poland and the Czech Republic. But he waited.

The trap was set in Georgia. When President Saakashvili blundered into South Ossetia, sending in an army to shell, kill and maim on a vicious scale (against US advice and his promised word), Russia was waiting ...

... Moscow can also counter Georgian PR, the last weapon left to Tbilisi. Human rights? Look at what Georgia has done in South Ossetia (and also in Abkhazia). National sovereignty? Look at the detachment of Kosovo from Serbia. False pretexts? Look at Ronald Reagan's invasion of Grenada to “rescue” US medical students. Western outrage? Look at the confused cacophony.

There are lessons everywhere. To the former Soviet republics - remember your geography. To Nato - do you still want to incorporate Caucasian vendettas into your alliance? To Tbilisi - do you want to keep a President who brought this on you? To Washington - does Russia's voice still count for nothing? Like it or not, it counts for a lot.

Let's dwell on that chess metaphor a while.

Aron Nimzowitsch was a great chess Grandmaster. One of his famous reputed chess aphorisms is "the threat is stronger than the execution".

The sense is that one can wait for some time to play a strong chess move, letting the threat that it might happen create new advantages. However, once the move is played the threat is gone and the move stands on its own merits. And, of course, the move is 'committal' - once played it can not be taken back.

In this case the Russians have been watching the Kosovo precedent and waiting to move.

One possible move was to stand firm on rejecting Kosovo independence. Another was to say that if Kosovo gets what it wants, why should not some others do the same?

The Georgian episode opens the way for Moscow to play the second move, as looks to be happening: "Georgia's territorial integrity is a dead issue".

However, Russia is a UN Security Council Permanent Member so such moves have to be wrapped in some sort of credible international law ribbon.

By parking on unbending opposition to the Kosovo precedent, Russia claimed to rule out ad hoc exceptions to a key precept of international practice in Europe in recent decades, namely that borders can not be changed without general consent.

What exactly is Russia now saying?

That if a country behaves badly enough towards minority territories, those territories can break away?

That any territory can break away if it has a strong supportive neighbour?

Or is there a new realpolitik doctrine emerging, that a new twilight zone category of small pseudo-states might emerge whose 'independence' is recognised by a core of supporters but not the international community as a whole? See also Transdnistria.

These questions have mind-boggling political and diplomatic ramifications rippling on down the decades to come. What looks like a strong move now may (or may not) come to look like a mistake.

For now Russia has all sorts of operational options in Georgia, using the presence of Russian official and unofficial forces on the ground to play for time and create (as we chess-players say) unfathomable complications.

For a famous example of such complications, see Game 14 of the World Championship match between Garry Kasparov and Vishy Anand. At the height of the battle (and the Championship struggle as a whole) with both players short of time, Kasparov on move 27 made a dramatic speculative knight sacrifice throwing the position wide open. He outplayed his opponent in the ensuing dog-fight.

Putin maybe has in mind a famous American example:

I don’t believe in psychology. I believe in good moves.

Georgia - In Europe?

16th August 2008

The commentaries on Georgia pour out.

This one by John Bolton is sharp and good. Try this:

The European Union took the lead in diplomacy, with results approaching Neville Chamberlain’s moment in the spotlight at Munich: a ceasefire that failed to mention Georgia’s territorial integrity, and that all but gave Russia permission to continue its military operations as a “peacekeeping” force anywhere in Georgia. More troubling, over the long term, was that the EU saw its task as being mediator – its favourite role in the world – between Georgia and Russia, rather than an advocate for the victim of aggression.

And this:

The West, collectively, failed in this crisis. Georgia wasted its dime making that famous 3am telephone call to the White House, the one Hillary Clinton referred to in a campaign ad questioning Barack Obama’s fitness for the Presidency.

The point being:

 ... we are facing the much larger issue of how Russia plans to behave in international affairs for decades to come. Whether Mikhail Saakashvili “provoked” the Russians on August 8, or September 8, or whenever, this rape was well-planned and clearly coming, given Georgia’s manifest unwillingness to be “Finlandized” – the Cold War term for effectively losing your foreign-policy independence.

Hence:

 ... we should have a foreign-minister-level meeting of Nato to reverse the spring capitulation at Bucharest, and to decide that Georgia and Ukraine will be Nato’s next members. By drawing the line clearly, we are not provoking Russia, but doing just the opposite: letting them know that aggressive behaviour will result in costs that they will not want to bear, thus stabilising a critical seam between Russia and the West.

 ... Russia did not invade Georgia with diplomats or roubles, but with tanks. This is a security threat, and the proper forum for discussing security threats on the border of a Nato member – yes, Europe, this means Turkey – is Nato.

Saying this may cause angst in Europe’s capitals, but now is the time to find out if Nato can withstand a potential renewed confrontation with Moscow, or whether Europe will cause Nato to wilt. Far better to discover this sooner rather than later, when the stakes may be considerably higher.

What is interesting about Issues is that they do not go away even when we do not want to look at them.

'Europe' (in this case the EU) finds some things Just Too Difficult.

One example. Which countries are in Europe? This simple question is highly unsimple and (worse) uncomfortable, since to answer it clearly opens the prospect of EU membership to those countries who qualify.

Those EU members who (a) do not want much further enlargement and (b) see the EU above all as some sort of balance to the USA do not want to think about bringing any more of the former Soviet republics into the European fold. To do so opens questions about Russia's role which (they think) are best left unopened.

Alas for them the Russian intervention in Georgia does open that question.

So, EU. Are we going to stand nervously inside our fence listening to the cries for help of people looking remarkably like Europeans hammering at the gate as they get savaged by bears?

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No Eye Contact

13th August 2008

Back in the West, there is a health and safety policy I have not seen before here at Aquatica, the new water-park next to SeaWorld in Orlando.

As one waits in line for a good splashy ride, a tape-recording in a prissy male Australian voice tells us all that:

Your security is our number one concern. Therefore, lifeguards may not make eye-contact when speaking to you. Nothing personal, mates. No worries!

Huh?

Does eye-contact with lifeguards make some people feel insecure? Or is it that the lifeguards' beady eyes must be roving ceaselessly to spot potential trouble and so they may not have time to alight on you, so please do not feel offended? Something else?

I have sent a message to Customer Relations to ask. Always nice to know what is going on.

Update: almost instantaneous and friendly replies from Aquatica saying that indeed the point is that the lifeguards need to be looking everywhere so may not have eyes for you when talking. I have pointed out that that is not clear from the way the warning is phrased. Over to senior management.

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Georgia v Gorbachev

13th August 2008

Here is Nobel Peace Prize Winner Mikhail Gorbachev piously enjoining people in the Caucasus to live together nicely:

The roots of this tragedy lie in the decision of Georgia's separatist leaders in 1991 to abolish South Ossetian autonomy. Each time successive Georgian leaders tried to impose their will by force - both in South Ossetia and in Abkhazia, where the issues of autonomy are similar - it only made the situation worse...

What happened on the night of August 7 is beyond comprehension. The Georgian military attacked the South Ossetian capital of Tskhinvali with multiple rocket launchers designed to devastate large areas. Russia had to respond. To accuse it of aggression against "small, defenceless Georgia" is not just hypocritical but shows a lack of humanity...

... Georgian armed forces were trained by hundreds of US instructors, and its sophisticated military equipment was bought in a number of countries. This, coupled with the promise of Nato membership, emboldened Georgian leaders.

... Small nations of the Caucasus do have a history of living together. It has been demonstrated that a lasting peace is possible, that tolerance and cooperation can create conditions for normal life and development...

The international community's long-term aim could be to create a sub-regional system of security and cooperation that would make any provocation, and the very possibility of crises such as this one, impossible...

What a superb performance. These Russian communists sure have staying-power.

A couple of the more obvious points:

1)     The roots of this problem are not to be found in 1991, but rather in the preceding decades of Soviet brutalisation of Georgia which continued while said Gorbachev was still in power. Eg this example of the Gorbachev communists tackling the National Question in Georgia in 1989:

At the dawn, the Soviet special task forces attacked the demonstration with sharpened spades and poisonous gases, killing twenty-two demonstrators, mostly women and teens. Some two thousands were left sick for weeks and months, in hospitals and at home, from the toxic gases. The brutality of