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Topics in this Issue of
September 16, 2009

 

 

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Obama speaks about the financial crisis, on the anniversary of the Lehman Brothers collapse, Monday, Sept. 14, 2009, at Federal Hall on Wall Street in New York. (AP Photo/Charles Dharapak)
President Barack Obama speaks about the financial crisis, on the anniversary of the Lehman Brothers collapse, Monday, Sept. 14, 2009, at Federal Hall on Wall Street in New York. (AP Photo/Charles Dharapak)


The Troubled Economy & Capitalism

STATE BUDGET CRISIS. ARE PERMANENT CHANGES NEEDED?  Alan Greenblatt,  CQ Researcher, September 11, 2009, pp. 741-764. "State budgets always fall out of balance during recessions, but in the current downturn states are facing the worst budget crunch since the Great Depression. Over the past two years, states have had to close budget gaps exceeding $300 billion. Many have raised taxes, but they've mainly dealt with the challenge by cutting spending. State workers are facing layoffs and unpaid furloughs. Social services, including health insurance for children, are being cut dramatically. Even normally sacrosanct areas such as K-12 education and public safety are taking hits. The federal stimulus package included fiscal relief for states, but that money will soon run out. And states expect to face continuing problems. Their revenues will grow more slowly than they've come to expect over the past 30 years, leading some observers to wonder whether states have to make fundamental changes in the scope and scale of the services they provide." READ MORE

THE DECLINE OF THE WHITE WORKING CLASS AND THE RISE OF A MASS UPPER-MIDDLE CLASS. Alan Abramowitz and Ruy Teixeira, Political Science Quarterly, Fall 2009, pp.391-422.  "Alan Abramowitz and Ruy Teixeira document the dramatic decline in the white working class and discuss the complicated ways this decline has transformed American politics. They also discuss the emergence of a mass upper-middle class whose effects on American politics may be similarly complicated." READ MORE

CUTTHROAT CAPITALISM. Scott Carney, Wired, July 2009, pp. 110-117. In a graphics-heavy layout, the author describes the business model being used by Somali pirates in the Gulf of Aden. The rapidly escalating number of hijackings and ransom demands made of ship owners in this treacherous patch of ocean is based on carefully calculated business inputs, potential profits, and likely risks, according to the author’s research. The pirates who seize the ships, hold the crews, and demand the ransoms are usually Somali fishermen, who stand to make far more money as kidnappers. However, they only take home about 30 percent of the ransom; the largest share goes to the financiers on land, who underwrite the expeditions. The pay-offs are 100 times more than what they were in 2005, according to the author, who says there does not appear to be an end in sight. Running the risk of a ship hijacking and paying the ransoms, so far, seems a better alternative for international shipping companies, who otherwise would route their ships around the Cape of Good Hope, a much longer and expensive route with its own risks. READ MORE

THE COMING CONSEQUENCES OF BANKING FRAUD.
 J.S. Kim, Seeking Alpha, posted September 9, 2009, var. pages. The author, an independent financial advisor and analyst, writes that the rally in Western stock markets in recent months has been the result of financial fraud, a “scheme executed by an elite global financial oligarchy ... to fool the world into believing that global economies are recovering.” Kim contends that the banking and financial establishment have engaged in transactions that have been kept secret from the public and “will have severe and negative consequences in the not-so-distant future,” and the blowback from these activities will exceed the downturn the world experienced in 2008. In view of the worsening economic data, the current stock market rally makes sense only when viewed through the prism of fraud, with the rise of computerized ultra-fast high-frequency proprietary trading programs, and the fact that much of the trading volume in recent weeks has been in only a handful of financial firms. He adds that all government-produced economic statistics “have been massively distorted towards the side of optimism and away from reality” during financial crisis, and this false front of optimism has been abetted by financial journalists. READ MORE

A NEW CAPITALISM – OR A NEW WORLD? David Schweickart, World Watch, September-October 2009, pp. 12-19. Schweickart, philosophy professor at Loyola University Chicago, argues that “we must move beyond capitalism if humanity is to flourish” – capitalism, as currently practiced, depends on nonstop growth to remain healthy, and discounts the natural resources and ecological systems that it exploits. Schweickart proposes a system of democratized labor, in which businesses are communities, not legal entities that can be bought and sold, and democratized capital, in which financing is arranged through government taxation or public banks. He points to the Mondragon Corporacion Cooperativa in the Basque region of Spain, an enterprise already half a century old, as evidence that such an economy would be viable.
READ MORE

Climate and Energy

THE CALIFORNIA EXPERIMENT. Ronald Brownstein, The Atlantic, October 2009, var. pp. "California hasn’t solved all the puzzles associated with replacing fossil fuels. And its successes cannot necessarily be easily replicated. But the state is grappling with every major energy-related issue that currently faces the country. Its experience doing so is also likely to shape an intensifying national debate, because so many key players have roots in the state, from Barbara Boxer and Henry Waxman, who chair the Senate and House committees that are considering climate change, to Energy Secretary Steven Chu. California’s story illuminates some of the obstacles the nation will need to overcome as it seeks cleaner forms of power. But more broadly, California demonstrates how sustained political leadership can reshape how we produce, sell, and use energy—can “bend the curve,” as they say in Silicon Valley." READ MORE

WIND POWER’S WEIRD EFFECT. Jonathan Fahey, Forbes Magazine, September 7, 2009, var. pp.  "The news about wind power is mixed, notes the author. The good news is that, thanks to cheap wind energy, in some parts of the country when there is too much power on the grid, wholesale power prices are now dropping to zero or below at certain times of the day. The bad news is that wind turbines spin the most at night when demand is low and least during afternoons when power is needed. Some power plants are hard pressed to power down when wind power is at its highest. In the long run, the wind power boom could push daytime prices higher. To balance out fickle wind turbines, utilities will need electricity during peak times from gas-fired plants; that intermittent power will be expensive." READ MORE

THE BIG HEAT. Corey Powell, Discover, June 2009, pp. 38-43. "Global warming is at once the most alarming challenge and the most controversial. Despite the potential for catastrophic environmental outcomes, a large segment of the U.S. public still doubts that climate change will cause major harm, or that it is occurring at all. Discover Magazine editor-in-chief Powell moderates a discussion between four prominent climate scientists, who discuss the evidence that climate change is occurring. For them, the number of different events that are all happening simultaneously would be very hard to explain if not for global warming -- such as the loss of ice mass in both polar regions, the increasing acidification of the oceans, and the potential for widespread crop failures in many equatorial regions where crops are already being raised at temperatures close to their photosynthetic limits. They fear that it may be too late to make the needed changes if humanity waits until there is international cooperation; what is needed is leadership by the U.S. and Europe, and other nations will follow." READ MORE

THE LOW-CARBON DIET: HOW THE MARKET CAN CURB CLIMATE CHANGE. Joel Kurtzman, Foreign Affairs, September/October 2009, var. pp. "The global economic crisis has battered the free market's reputation, but the market nevertheless remains a powerful tool both for allocating capital and for effecting social change. Nowhere is this truer than with the challenge of confronting and reversing climate change. Of all the market-based tools available for addressing this problem, the most potent are cap-and-trade systems for greenhouse gas emissions. Under cap-and-trade systems, companies can trade permits with one another through brokers or in organized local or global markets. Cap-and-trade markets for greenhouse gases, such as the Chicago Climate Exchange, already exist in the US, and a number of large companies and institutions have already joined the exchange to trade the right to emit carbon. In Europe, where adherence to the Kyoto Protocol is mandatory, the Greenhouse Gas Emission Trading Scheme has been operating since 2005 and allows the trading of emissions from stationary sources, such as electric utilities. With so much at stake for the environment, cap-and-trade legislation cannot wait." READ MORE

Middle East Conundrum

AL-QAEDA'S PALESTINIAN PROBLEM.  Barak Mendelsohn, Survival, Aug/Sep 2009, pp. 71-86. "In distress, al-Qaeda is seeking to use the Palestinian question to improve its image, but is finding there is no easy way to back its promises with action." READ MORE

COMPETITIVE CLIENTELISM IN THE MIDDLE EAST. Ellen Lust, Journal of Democracy, July 2009, pp. 122-135. "Legislative elections in the Middle East often become contests over patronage and wind up reinforcing authoritarian regimes." READ MORE

THE THREE ARAB WORLDS. James E Rauch, Scott Kostyshak, The Journal of Economic Perspectives, Summer 2009, pp. 165–188. "Given the attention currently focused on the Arab world in part as a result of adjustments in U.S. foreign policy, a fresh look at Arab socioeconomic performance is in order. The Arab world is defined by language rather than ethnicity. The League of Arab States, formed in 1945, consists of all countries in which (a dialect of) Arabic is the spoken language of the majority. It is useful to compare the human development diversity of the Arab world to that of Latin America, another vast geographic area defined by language and culture. Our strategy in this article is therefore to disaggregate the Arab world into Arab sub-Saharan Africa, Arab fuel-endowed economies, and a remainder we call the Arab Mediterranean, and to compare these three Arab worlds to non-Arab sub-Saharan Africa, non-Arab fuel endowed economies, and the rest of the non-Arab world." READ MORE

THE BATTLE FOR BAGDAD. Kenneth M. Pollack, The National Interest, Sep/Oct 2009, pp. 8-18. "Baghdad is once again on the brink of civil war. The old Iraqi politics of backroom deals, corruption and violence are alive and well. And as Prime Minister Maliki attempts to consolidate his power in the lead-up to the January elections, America could be all that stands in his way." READ MORE

THE IRAN SHOW. Laura Secor, New Yorker, August 25, 2009, var. pages. "Laura Secor describes Iran's show trials for politicians, students, and activists accused of colluding with foreigners in the aftermath of the disputed presidential elections.  READ MORE

THE PARADOX OF IRAN'S NUCLEAR CONSENSUS. Kayhan Barzegar, World Policy Journal, Fall 2009, pp. 21-30. "In the aftermath of Iran's post-election drama, some Western observers have argued that the apparent weakening of the Iranian elites policy consensus, and also by implication the legitimacy of the incumbent government of Mahmoud Ahmadinejad, will enable the West to acquire leverage vis-a-vis the nuclear issue. In fact, the reality is quite different. Divisions within the Islamic Republic, if they truly exist, will not provide the space for reconsidering the nuclear question. Only when there is an internal consensus among Iran's elite and the possibility of negotiating from a position of strength will Tehran come to a genuine and definitive agreement with the US over the nuclear issue. Here, Barzegar looks at the policy issue of Iran's nuclear program." READ MORE

TEHRAN'S TAKE. Mohsen M Milani, Foreign Affairs, Jul/Aug 2009, pp. 46-62. "Iran's foreign policy is often portrayed in sensationalistic terms: mad mullahs, apocalyptic delusions, untamable nuclear ambitions. But Iran's ruling ayatollahs are following a clear strategic logic: ensuring the survival of the Islamic Republic against what they think is an existential threat posed by the United States. The main goals of Iran's U.S. policy are to deter Washington from attacking Iran, counter Washington's containment strategy, and expand Tehran's influence in the Middle East." READ MORE

Africa

RAPE OF THE CONGO. Adam Hochschild, New York Review of Books, August 13, 2009, var. pages. "Adam Hochschild emphasizes four major factors that continuously cause conflict in Congo: long-standing antagonism between certain ethnic groups, the 1994 Rwandan genocide, vast wealth in natural resources, and lastly, a vast population--65 million--in an area as big as the United States east of the Mississippi." READ MORE

OPPOSITION WEAKNESS IN AFRICA. Lise Rakner and Nicolas van de Walle, Journal of Democracy, July 2009, pp. 108-121. "Due to weak opposition parties and presidential dominance, many African countries have not reaped the full benefits of regularly held elections." READ MORE

Military Strategy & Security Issues

MILITARY ENGAGEMENT, STRATEGY, AND POLICY. Derek S Reveron, Orbis, Summer 2009, pp. 489-505. "Many states increasingly rely on the U.S. for either the actual provision of security or the training and equipment necessary to perform security functions. By 2008, the United States was providing security assistance to 149 countries. Under the global war on terrorism banner, the Bush administration stepped up Clinton-era programs in Africa, Asia, and Latin America. All of a sudden, the military found itself building militaries in Georgia, Rwanda, Yemen, the Trans-Sahara, and the Philippines, providing disaster relief in Indonesia, Pakistan, and the Gulf Coast, and leading reconstruction efforts in Iraq and Afghanistan. Here, Reveron talks about the US military engagements, strategies and policy. He narrates that because there are so few institutional alternatives for insuring stability and security in developing states, the US military increasingly will find itself in non-warfighting roles." READ MORE

LEARNING UNDER FIRE: PROGRESS AND DISSENT IN THE U.S. MILITARY. Philipp Rotmann, David Tohn and Jaron Wharton, Survival, Aug/Sep 2009, pp. 31-48. "The Pentagon’s shift to a counter-insurgency posture was catalysed by junior leaders responding to tactical problems and senior institutional dissidents driving deep, controversial changes in doctrine and culture." READ MORE

TO BOMB OR NOT TO BOMB: AIR SUPPORT IN AFGHANISTAN. Lt Col. Eugene L. McFeely, Strategy Research Project, Aug. 30, 2009, var. pages. "Civilian casualties associated with coalition air support activities have strained U.S. Afghan relations and forced the CENTCOM Commander to review the use of this valuable asset in theater. This AY2009 USAWC resident student paper addresses how the U.S. can balance the kinetic effects of airpower with strategic objectives in counterinsurgency." READ MORE

EUROPE'S NEW SECURITY DILEMMA. Lorenzo Vidino. Washington Quarterly. October 2009, var. pp. "Authorities in most European countries are faced with the same dilemma: can nonviolent Islamists be engaged and used as partners against violent radicalization? The debate goes to the heart of how to identify the enemy." READ MORE

CONTINENTAL DRIFTS. Geoffrey Wheatcroft, The National Interest, March/April 2009, 39-47. "Wheatcroft, a British journalist and author, notes that the Israeli incursion into Gaza at the beginning of 2009 highlighted the growing gulf between the U.S. and Europe. As judged by media coverage, the gap between American and European perceptions of the conflict was wider than ever, as if Gaza “might be two entirely different stories.” Despite sharing a common heritage, America and Europe have long diverged on matters of politics, war, religion and the social contract. The Cold War concealed a number of differences, and with the collapse of the Soviet Union, the author writes that “we should not be surprised to see the rifts turning into chasms.” A major point of contention was the disparity in sharing the cost of the NATO alliance, an arrangement that fueled unprecedented economic prosperity in Western Europe, while the U.S. shouldered debt from military spending.” READ MORE

HARNESSING THE FINANCIAL FURIES: SMART FINANCIAL POWER AND NATIONAL SECURITY. Juan C. Zarate. The Washington Quarterly. October 2009, var. pp.  The former U.S. deputy national security adviser explains the new paradigm of smart financial power, which is targeted, effective, and central to national security, as well as the challenges facing its application in Iran, North Korea, and elsewhere in the years to come. READ MORE

A GLOBAL PROBLEM: CYBERSPACE THREATS DEMAND AN INTERNATIONAL APPROACH, (Maj.) David Wilson, Armed Forces Journal, July 2009.  var. pp. "Cyberspace has changed the way people communicate forever, the author writes, but with that change comes a host of new problems including identity theft, computer viruses, the defacement of websites and network intrusions. He says cyberspace has become “an entity unto itself, not controlled by anyone, but affecting all in one form or another.” Nations need to establish agreed-upon standards to help resolve problems plaguing cyberspace, including cybercrime. Wilson, who is chief of cyberlaw at the Army’s U.S. Space and Missile Defense Command, advocates setting up an international organization comprised of cyber-faring nations to oversee the borderless domain of international cyberspace. Such an organization would promote collaboration by governments and industry on software and filtering standards needed to block viruses and create an international firewall. He also calls for the creation of an international cyberspace convention to monitor the health of cyberspace and to deal with problems. Within that context, the author says an international Computer Emergency Response Group must be created." READ MORE

WORLD WAR 3.0: TEN CRITICAL TRENDS FOR CYBERSECURITY. Marvin J. Cetron and Owen Davies, The Futurist, September/October 2009, pp. 40-49  "Cybersecurity is the soft under-belly of the US, outgoing US National Intelligence director Mike McConnell declared in a valedictory address to reporters in mid-January. He rated this problem equal in significance to the potential development of atomic weapons by Iran. Repeated reports that Chinese computer specialists have hacked into government networks in Germany, the US, and other countries show that the threat is not limited to relatively unsophisticated lands. Here are some trends for cyberwar: 1. Technology increasingly dominates both the economy and society. 2. Advanced communications technologies are changing the way people work and live. 3. The global economy is growing more integrated. 4. Research and development play a growing role in the world economy. 5. The pace of technological change accelerates with each new generation of discoveries and applications. Cyberweapons may kill fewer people, but they can have enormous economic impact. A particularly clever opponent might even carry out a devastating attack without ever being identified or facing retribution." READ MORE

GOP's Future

IF SARAH PALIN IS THE ANSWER...Geoffrey Wheatcroft, The National Interest, Sep/Oct 2009, pp.68-78. "Conservatism is once again facing an identity crisis. The recent passing of William F. Buckley, Jr., offers a perfect opportunity to look back at the movement, with its antecedents, its birth, its triumphs and now its potential demise. From Lincoln’s preservation of the nation to Reagan’s cold-war victory, the Republicans have long ruled the American political scene, making some nasty compromises along the way. The GOP, now fractious, demoralized and baffled, searches for its soul. READ MORE

THE TORIES AND THE GOP: LESSONS IN LOSING. Rupert Darwall, Policy Review, Aug/Sep 2009, pp. 3-14. As the catharsis of electoral rejection gives way to the long march of opposition, Republicans might reflect on the experience of Britain’s Conservative party, which in 1997 suffered its worst poll defeat since 1832. Two further defeats followed. By the next election, due by June 2010, the Conservatives will have been out of office longer than they have been at any time since the middle of the 19th century. READ MORE

Journalism

JOURNALISM AS A CIVIC PRACTICE. Doug Oplinger, Connections: The Kettering Foundation’s annual newsletter, 2009, pp. 14-15. Even financially imperiled news organization can continue to be “chronicler and conscience” of their communities, says Oplinger. He uses the Akron (Ohio) Beacon Journal as an example. Without compromising its journalistic integrity, he writes, the newspaper collaborated with its media competitors and the city’s special interests on a civic journalism project that explored, starting in 2006, the hopes and fears of America’s “disappearing middle class.” The project blossomed into a long series of stories and several public events. “Collaborations such as the Beacon Journal’s middle-class project may begin to rewrite the rules of engagement for civic journalism,” Oplinger writes. The project worked because it not only reported on the problem, but helped drive the discussion, he says. READ MORE

THE LIMITS OF CONTROL. Pamela Podger, American Journalism Review, June/July 2009, var. pages. For journalists today, social networking sites are increasingly blurring the line between the personal and professional. This creates a host of ethics and etiquette questions for news organizations, which are crafting guidelines for the growing number of staffers using social networks. Generally speaking, the advice to journalists is to identify themselves as journalists, tell recipients they are using social networks in a professional capacity, and remain mindful that people will regard them as representatives of their news organizations. Amy Webb, principal consultant at Webbmedia Group in Baltimore, says news organizations should be pondering the privacy and safety issues of a new crop of tools, including location-aware services. "When a New York Times reporter logs on to Facebook from his mobile phone, he's sharing a lot more information than his status updates. He's sharing the content he wrote and his location," Webb says. "There are safety and privacy issues around this." READ MORE
  


 

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