Normative Narratives


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Transparency Report: Parenting, Emotional Development, and Social Mobility

SGM benchmarks

Benchmarks for Success from the Social Genome Model

According to the Brookings Institute’s Social Genome Model Benchmarks for Success, the route to a successful life begins with a child’s emotional and cognitive development. Whether it is due to a lack of financial resources, time, or parental ability (or some function of the three), success in life is strongly influenced by the one stage a person has absolutely no control over–family formation.

As Brooking Institute’s Hugh B Price concludes in his recent paper “Social and Emotional Development: The Next School Reform Frontier”:

Of course parents, churches and communities bear primary responsibility for socializing children, but if in reality they are not up to it, what then? Consigning these youngsters to academic purgatory or, worse still, the criminal justice system serves neither society’s interests nor, obviously, theirs. Research and real-world experience demonstrate convincingly that investing in the academic and social development of youngsters left way behind pays welcome dividends. SEL deserves, at long last, a prominent place in school reform policy and practice.”

It is impossible to determine what single element holds back social mobility efforts, whether it is time, money, “values”, or some other variable. This is because the missing element is dependent upon the strengths and weaknesses of parents, which vary from couple to couple.

A multi-dimensional approach to social mobility, including paid maternity leave, universal pre-K, and investing in K-12 social and emotional learning (SEL) is needed to mitigate the effects of inadequate parenting (regardless of its cause). A child born to a wealthy family with strong values will always be at an advantage; this reality does not mean we cannot or should not ensure there is a developmental “floor” that supports all children.

America cannot afford a future where only children born to the wealthiest parents receive the attention and resources that nurture both cognitive and emotional development. One of the key factors that has sustained American exceptionalism over the course of our history has been our talented, innovative, and hard working labor force.

America’s historic commitment to freedom and human rights manifests itself in a creative and innovative spirit that has made American inventions and culture dominant on the global stage (even as our “Superpower” status wanes in other respects). But maintaining a large, skilled labor pool–the workers needed to bring great visions to reality–requires investments that promote a meritocratic society, one in which true equality of opportunity results in broad based economic growth and social mobility.   

Innovation is the ultimate engine of sustainable growth–not financial engineering or mining finite resources in ways that do not even pay lip service to the public costs resulting from their production. We cannot know who the next great innovators are, the ones who’s inventions will create new industries that employ future generations, contribute to solving the global issues of the 21st century, and develop medical breakthroughs that change peoples lives. Every child must be enabled to reach these heights if they are talented enough to do so.

Investing in people pays dividends, particularly during the early developmental stages of life. Furthermore, we cannot just wish away societies most vulnerable (try as we might). When one considers the increased welfare and criminal justice costs, as well as the general insecurity associated with systematically underinvesting in societies most vulnerable groups, the arguments for greater investment in SEL programs are bolstered.

Considering how low long-term borrowing rates are for the U.S and many foreign governments, these are certainly investments we can afford to make (and I would argue cannot afford not to make). But what about poorer countries with less resources and higher borrowing costs? In these cases, SEL targeted Flexible Credit Lines (FCLs) should be extended to low and middle income countries that are willing to adhere to certain oversight mechanisms.

Unfortunately, it appears that national policymakers are leading their citizens in the wrong direction when it comes to funding programs that promote human development. Even in wealthy places like America and Europe, politicians claim we cannot afford to make these investments, despite their alignment with our purported values, high long-run returns on investment, and low long-term borrowing costs.

Investing adequately in childhood development is a question of both social justice and long-term economic growth. Governments around the world must stop viewing impoverished youth as a liability and start embracing them as the future asset they are.


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Aftermath of The Baltimore Riots: Justice is Blind, Economics is Not

RIP Freddy Gray. Just 25 years old, a young man’s life was tragically cut short. We cannot let the ensuing chaos detract from this ultimate injustice.

I have seen people on social media try to justify what happened to Mr. Gray by bringing up his criminal history. Not only is his rap-sheet immaterial to his death, but it is despicable that people would drag a dead man’s name through the mud to make their politically / racially charged points. This man is dead, he cannot defend himself.

Furthermore, Mr. Gray’s criminal history of non-violent drug use / distribution is a common product of his environment. Not to make excuses for his past crimes, but his environment does offer some insight and context into his questionable choices.

Another meritless claim is that Mr. Gray’s spinal surgery led to his death. Mr. Gray did not die on the operating table, and without some outside trauma to his spine he would still be alive today.

Equally disgraceful to these meritless justifications of alleged officer misconduct are opportunists using Mr. Gray’s death to loot and riot. Mr. Gray’s family, for their part, has condemned the riots. Nothing fuels a counter-narrative like unlawful behavior; as the saying goes, with friends like these who needs enemies.

A Department of Justice investigation is ongoing, and I fully expect that after a transparent investigation those responsible for Mr. Gray’s death will be held accountable.

Yes America’s criminal justice system is flawed, particularly with respect to African American communities, but to assume that it is never capable of delivering justice belittles its many unsung successes. As of this posting, the 6 officers involved in Mr. Gray’s death have been charged with various crimes, including second degree murder and manslaughter, by Baltimore’s Chief Prosecutor.

I can understand rioting after an unfair ruling, but not before a ruling even takes place. Some will argue that as a white man it is not my place to understand, and while I like to think I am generally pretty good considering things objectively, they may have a point. I do however know this; when comparing the track records of violent and non-violent protests in achieving meaningful reform in America, the more effective approach has unquestionably been non-violent.

Those sympathetic to the rioters may argue that every successful non-violent protest was buoyed by a parallel violent movement. While it is impossible to completely decouple the effects of parallel violent and non-violent movements, I find this argument flawed. What positive role could violent protest possibly play in political decision-making when violent protests detract from public sympathy, and the state always has the overwhelming advantage in shows of force?

To the contrary, in my opinion meaningful change results from strong leaders utilizing their rights to publicly frame issues in ways that even those who may, in their private thoughts, be ideologically opposed cannot as publicly elected officials reasonably challenge.     

Regardless of my understanding, the riots have, in the words of Baltimore’s African-American Police Comissioner Anthony Batts, embarrassed Baltimore as a city. Fortunately the negative actions of a few misguided Baltimoreans should have no impact on either the Baltimore Country or DoJ investigations.

But ultimately it is not the short-term embarrassment or immediate economic consequences that should most worry those who wish to see Baltimore thrive. It is the long-term impact on investment that is most troubling, as the riots will likely exacerbate the very socioeconomic conditions which indirectly led to Mr. Gray’s death and the ensuing riots in the first place.

While properly served justice is “blind”, economic decision making considers every iota of information available:

The looting and burning of a CVS pharmacy and general store, which has been shown on just about every newscast in the past 24 hours, as well as the destruction of other shops, will tend to deter retailers from making new investments, economists warned.

“One of the things that’s been growing in the area has been the tourism aspect and nothing puts off tourists more than riots and curfews,” said Daraius Irani, chief economist at the Regional Economic and Studies Institute of Towson University in Baltimore.

“One of Baltimore’s credit strengths is it has a sizeable and diverse tax base,” said Moody’s analyst Jennifer Diercksen, noting the city’s universities, which provide thousands of very safe jobs – creating a stable base for Baltimore.

Still, the city lags the rest of the nation on a per capita income basis. Its per capita income was $24,155 for 2012, representing only 86.1 percent of the national median, according to Moody’s.

Its unemployment rate is higher than the U.S. average – according to the U.S. Bureau of Labor Statistics, Baltimore city’s unemployment rate in February was 8.4 percent versus the U.S. rate of 5.8 percent in that month.

Still, economists said one of Baltimore’s problems is the sharp demographic split between the successful elite and an underprivileged population.

“There is the vibrant, beautiful, urban community that is characterized by ongoing renaissance, and the poor, less educated, less visited, which faces more challenges,” said Basu. “Both Baltimores have been making progress in recent years.

“Despite the fact the destruction was in the other Baltimore, not the one visited by tourists, the damage economically in the near and mid term will affect both.”

When private investment lags, jobs and tax revenue for social programs and public goods take a hit. Regardless of your political affiliation or personal beliefs, one or more of these things are needed to promote social mobility and social justice.   

Baltimore’s leaders must now prove their mettle by utilizing the city’s strong fiscal position to attract investors. The city’s leaders must leverage both public money and the public relations boost private companies would realize by helping “rebuilding Baltimore” towards securing public-private partnerships that benefit Baltimore’s poorest areas.

The only silver-lining of these riots is that America is paying attention to Baltimore. While I think peaceful protests would have achieved this same outcome without the negative media coverage and economic backlash, the riots are now (hopefully) a matter of history. Moving forward, the attention Baltimore is currently receiving must be utilized as a positive.  

Another potential avenue for recovery runs through Federal government, which being within a stones-throw of Baltimore may be compelled to invest significantly in revitalizing the city. Of course these two sources of public funding–municipal and federal–should be carefully coordinated to ensure that maximum social benefits are realized.

It is exactly trying times like these when strong leadership is most needed. Let us hope elected officials in Baltimore and Washington D.C. are up to the challenge. Community and religious leaders also have an role to play, both immediately in catalyzing anger into a sustainable political movement, and in the long run by promoting the roles of strong social values, resilience, and personal and social accountability in poverty reduction.

I am confident that criminal justice will be served in the Freddy Gray case, and that this case will help spur more widespread criminal justice reform across America.

Unfortunately, I fear the riots may have exacerbated the very problems that need to be addressed for more comprehensive progress on the social justice front.


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The Evolution of the Post-WWII International Order

As representatives from the IMF, World Bank, and the G20 converged on Washington last week, there was a sense that America may be losing its position as the main guarantor of international order:

As world leaders converge here for their semiannual trek to the capital of what is still the world’s most powerful economy, concern is rising in many quarters that the United States is retreating from global economic leadership just when it is needed most.

Washington’s retreat is not so much by intent, Mr. Subramanian said, but a result of dysfunction and a lack of resources to project economic power the way it once did. Because of tight budgets and competing financial demands, the United States is less able to maintain its economic power, and because of political infighting, it has been unable to formally share it either.

Other experts and historians, however, say too much can be made of the moment. Walter Russell Mead, a professor of foreign affairs at Bard College, noted that the rise of China as an economic force was inevitable, and that its establishment of a rival lending institution was far different from the international behavior of the Soviet Union and communist Chinese during the Cold War.

Then, he said, America’s rivals were trying to destroy and replace the economic order established by the United States and Britain after World War II. Now, emerging powers are emulating it, however imperfectly.

Sure other countries have risen in prominence since America stood as the lone super-power after the Cold War, but has this really resulted in America’s decline? I would argue that building up strong allies to help promote America’s vision of international order–one based on democracy, human rights, economic and defensive interdependence, and more recently environmentally sustainable economic development–was exactly why the U.S. took the lead in setting up the United Nations and the Brenton Woods Institutions (the World Bank, IMF, and GATT).

Therefore, in assessing America’s influence over international order, we should consider how these institutions have evolved. While they were all conceived with the best of intentions, good intentions do not always lead to good outcomes. Have these institutions been able to learn from their mistakes and make meaningful contributions to maintaining international order? Lets consider them on a case by case basis:

The International Monetary Fund (IMF):

The IMF was originally conceived to promote currency stability and help countries overcome short-term balance of payments issues. But as technological advances made the world smaller, the IMF took on a much larger mandate, and began extending loans to help developing countries modernize. The so called “Washington Consensus” linked development loans to “ex-post” (after the fact) conditions such as hitting fiscal targets (reducing the size of government) and liberalizing trade.

While these policies by and large do promote growth in already developed countries, they ignored the historic lessons of the world’s developed countries. Every advanced country relied on some degree of protectionism to cultivate its own industries and government spending to build both physical infrastructure and a skilled workforce as it modernized.

The “Washington Consensus” programs did not allow for policy space based on the historical experiences and current realities in the countries they intended to help. As I have often written, economics–particularly development economics–is highly context-sensitive; the “Washington Consensus” was simply to rigid and narrow-sighted to work.

The “Washington Consensus” was a consensus failure, and left many countries worse off than before they accepted this “help” (see “the lost decade” in Latin America). Thankfully the IMF abandoned this flawed set of policies.

The failure of the Washington Consensus led to IMF to reconsider how it does business–the “conditionality” attached to its loans. Instead of relying on a rigid set of targets a country must meet in order to continue to receive support, the IMF now focuses on pre-set “ex ante” conditionality. If a country has a sound macroeconomic position, it can tap into IMF financing while maintaining the policy space needed to address the needs of its citizens (and ultimately maintain its legitimacy).

The IMF will have to deal with the specter of the Washington Consensus for some time, but going forward it has evolved in meaningful ways.

The World Trade Organization (WTO):

The General Agreement on Tariffs and Trade (GATT) officially became the World Trade Organization (WTO) in 1995. The WTO sets rules for global trade and provides a forum for airing grievances. With membership covering 96.4% of global trade and 96.7% of global GDP, the WTO is unquestionably an important institution.

Critics often argue the WTO is ineffective, but any organization whose stated goal is the resolve international trade disputes is by definition going to be contentious. I would argue that the WTO has helped keep trade disputes trade disputes, and that without it many of these disputes could have ended in armed conflict.

In recent years, international trade news has been dominated by two proposed regional agreements, the trans-pacific partnership (TPP) between the U.S. and Asian economies, and the trans-atlantic trade and investment partnership (TTIP) between the U.S. and Europe.

There is no consensus as to whether regional free trade agreements (FTA) such as these undermine the global free trade movement, or if they are building blocks towards this goal. But one thing is for certain–free trade agreements create winners and losers. The winners tend to be the wealthy who are positioned to benefit from greater market access; the losers tend to be wage earners.

In the context of political dysfunction and simmering class-warfare in America and beyond, it is necessary that policies to transfer some of the gains from the “winners” to protect the “losers” of any FTA are baked into the agreements themselves. The ability of governments to address the inequality and environmental impacts of any FTA will greatly affect its historical legacy.

The United Nations (UN):

The United Nations is arguably the most important of the international institutions. In addition to providing a forum for countries to address one another, the UN also serves a global policy adviser, giving it the strongest normative mandate of any of these organizations.

The Millennium Development Goals (MDGs) are 8 specific goals whose intent is to guide the trajectory of the developing world. The successes of these goals has been uneven–some countries have a great record, while others not so much. As these goals are set to expire at the end of 2015, they are commonly viewed as beneficial but imperfect. Their successors, the Post-2015 Sustainable Development Goals (SDGs), aim to build on their successes while learning from their short-comings.

There are a number of ways the SDGs deviate from the MDGs. For one, they are much more inclusive and consultative. Seen as being drafted behind closed doors by the global elite, the MDGs were hampered from the start. Conversely, the SDGs are being drafted with input from numerous thematic and national consultations with the very people they are intended to benefit.

There is also greater emphasis on the roles of various stakeholders (governments, private sector, NGOs, civil society, and international organizations) with regards to both financing the agenda and being accountable for their operations in the developing world. “Who Will Be Accountable?” highlights these common but differentiated responsibilities, providing general guidelines for holding those who violate the SDGs accountable.

Between the launch of the Post-2015 Development Agenda (the SDGs) and the 2015 UN Climate Conference in Paris (which is expected to result in the first universal global climate treaty), 2015 will prove to be a pivotal year for sustainable human development initiatives.

One area the U.N. has not reformed sufficiently is in promoting global security. Given that security is a necessary precondition for sustainable human development, the significance of this shortcoming cannot be understated.

Nowhere has this problem been more acute than in the Middle East, where armed conflict has left 1 in 4 children out of school, led to immeasurable economic, physical, and psychological damage, and has completely overwhelmed the international humanitarian assistance network. The inability to protect children is especially alarming, as it plants the seeds for future conflicts.

The United Nations needs to respond more decisively against regimes that commit gross human rights violations. The concept of national sovereignty is meant to protect a country from outside invasion, not act as a shield for human rights abusers.

The Responsibility to Protect (R2P) was supposed to put peoples rights before national sovereignty, but it has proven to lack the teeth needed to provide meaningful protection. The need is clear, as I have called for in the past, for the UN General Assembly to have a mechanism for overruling UN Security Council vetoes. Such a reform would give the R2P the power it needs to fulfill its important mandate to prevent / end gross human rights violations.

The World Bank Group (WB):

The World Bank Group is responsible for financing development projects in the developing world. While its existence has been a “net benefit” for developing countries, the World Bank has had issues enforcing “good governance” standards on its projects, often resulting in adverse consequences for the worlds most vulnerable people:

The World Bank regularly fails to enforce its own rules protecting people in the path of the projects it bankrolls, with devastating consequences for some of the poorest and most vulnerable people on the planet, a new investigation by the International Consortium of Investigative Journalists, The Huffington Post and more than 20 other media partners have found.

The investigation’s key findings include:

  • Over the last decade, projects funded by the World Bank have physically or economically displaced an estimated 3.4 million people, forcing them from their homes, taking their land or damaging their livelihoods.
  • The World Bank has regularly failed to live up to its own policies for protecting people harmed by projects it finances.
  • The World Bank and its private-sector lending arm, the International Finance Corp., have financed governments and companies accused of human rights violations such as rape, murder and torture. In some cases the lenders have continued to bankroll these borrowers after evidence of abuses emerged.
  • Ethiopian authorities diverted millions of dollars from a World Bank-supported project to fund a violent campaign of mass evictions, according to former officials who carried out the forced resettlement program.
  • From 2009 to 2013, World Bank Group lenders pumped $50 billion into projects graded the highest risk for “irreversible or unprecedented” social or environmental impacts — more than twice as much as the previous five-year span.

Days after ICIJ informed the World Bank that the team’s investigation had found “systemic gaps” in the bank’s enforcement of its “social safeguard” rules, World Bank Group President Jim Yong Kim acknowledged “major problems” with the bank’s resettlement policies and vowed to seek reforms.

Being a “net benefit” for the developing world is not a high enough standard for the World Bank, it must adopt a “do no harm” principle in all its projects. To achieve this goal, the World Bank should emulate the UN in consulting with those who will be affected by their projects.

The World Bank has an important role to play in promoting the SDGs, but first it must get its own house in order.

Some may point to the recent rise of parallel international organizations such as the Asian Infrastructure Investment Bank (AIIB) and the New Development Bank (NDB) as further signs of the deterioration of an American led international order. Indeed, there are serious governance questions these institutions must address, lest they be counter-productive in the pursuits of promoting peace and eradicating extreme poverty.

It would be most constructive to have the UN promote these values (accountability, good governance, etc.) to emerging international institutions, not the US. The UN has international legitimacy; the same message coming from the UN would likely be much more well received.

US-centric international organizations are free to work with these parallel institutions or not, and their positions can evolve as these new institutions reveal their values through their actions. But as professor Walter Mead aptly points out, these institutions are not challenging America’s Post WWII vision of international order, they are doubling-down on it. As the saying goes, imitation is the greatest form of flattery.


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Technical Difficulties

NN Community,

My computer gave out on me, so I will be taking a forced break until I get t fixed. Hopefully that will be soon (I can’t put together high quality blogs on a mobile device, we ain’t runnin’ a fashion blog over here!).

In the iterim, feel free to check out my microblog on facebook, where I regularly post the articles that underpin Normative Narratives. 


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Transparency Report: Tunisia’s Test

On March 18th, terrorists took hostages at the Bardo Museum in Tunisia’s capital city of Tunis. When the dust settled, 22 innocent people had been murdered, mostly foreign tourists (20) but also Tunisian nationals (2).

Tunisia is to date the lone success story of the “Arab Spring”. This distinction, while undoubtedly a positive, makes Tunisia a target for extremist groups who are ideologically opposed to moderization, democracy, and human rights (“Western values”). It was not, therefore, a question of if extremists would try to scare the democracy out of Tunisia, but when and how.

That question was partially answered on March 18th, and unfortunately there are no guarantees that extremists groups will not attack again. Tunisia’s security forces must remain vigilant, and should receive substantial support from the international community. Seeing Tunisia succeed as a stable, functioning democracy is not only in the interest of Tunisians, but also the disenfranchised throughout the region and the world.

The Tunisian people, for there part, have proven themselves to be remarkably courageous and dedicated to democratic values:

World leaders joined tens of thousands of Tunisians on Sunday to march in solidarity against Islamist militants, a day after security forces killed members of a group blamed for a deadly museum attack.

“We have shown we are a democratic people, Tunisians are moderate, and there is no room for terrorists here,” said one of the demonstrators, Kamel Saad. “Today everyone is with us.”

“The Tunisian people will not bow,” President Beji Caid Essebsi said in a speech after the march. “We will stay united against terrorism until we wipe out this phenomenon.”

Tunisia’s leaders have passed every test of their commitment to democracy. They have transferred power peacefully and enshrined their dedication to liberal and pluralistic democracy in a new constitution. I am confident that the international community, understanding both the ethical and symbolic implications of Tunisia’s democratic success, will provide assistance as necessary.

But in the wake of these terrorist attacks, a new test to democratic values has emerged–preserving the rights of the accused:

Tunisian security forces have arrested 23 more suspected Islamist militants as part of a crackdown after last month’s Bardo museum attack in which two gunmen killed 21 foreign tourists, the interior ministry said on Friday.

The attackers gunned down foreign tourists visiting the national museum in Tunis, in one of the worst attacks in the country, which has mostly avoided violence since its 2011 uprising against autocrat Zine El-Abidine Ben Ali.

The interior ministry said in a statement that the 23 new suspects belonged to two terrorist cells. It said that so far 46 suspects have been arrested since the Bardo massacre.

“Members of these terrorist cells will be charged of being accomplices in the terrorist incident (Bardo attack) through providing weapons and logistics help,” the statement said.

I do not pretend to know the evidence against those arrested as accomplices–it is possible that all of the 46 suspects indeed are guilty of being accomplices to this heinous attack. But it is imperative that due legal processes are followed, and that trials are conducted in an open and transparent way.

People are angry, and rightfully so, but convicting people to placate public anger would be a misstep for Tunisia’s budding democracy. Tunisia’s government should resist urges to try all the defendants jointly (except when a joint trial is objectively prudent), and let the facts of the case determine the outcome.

Effective democratic governance is not only about majority rule, it is also about pluralism, personal rights, judicial transparency, due process and rule of law. Tunisia must show peaceful Muslim’s that there is a place for them in Tunisian society, that they won’t be unjustly punished because of their beliefs. Failure to do so would be counter-productive, pushing Muslims into extremists arms, resulting in greater future instability.

Tunisia’s leaders must stand behind democratic principles; the world–both those rooting for against Tunisian democracy–is watching. While Tunisia’s leaders have given us no reason to think they won’t rise to the challenge, the emotional nature of this situation raises some concerns. Enlisting help from UNDP Tunisia might not be a bad idea.

The Tunisian people, who have been unwavering democratic watchdogs throughout the Arab Spring, must remember the big picture and demand their government ensures fair trials for the accused.


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Economic Outlook: The High Cost(S) of Being Poor

I have previously written about different poverty traps in America, including our outdated criminal justice system (the “prisoner paradox”) and the developmental impacts of stress passed from mother to child. If these poverty traps seemed a bit abstract, consider a more traditional poverty trap–poor people shut out of traditional credit markets and relying on “payday” loans:

The Consumer Financial Protection Bureau, the agency created at President Obama’s urging in the aftermath of the financial crisis, took its most aggressive step yet on behalf of consumers on Thursday, proposing regulations to rein in short-term payday loans that often have interest rates of 400 percent or more.

“We are taking an important step toward ending the debt traps that are so pervasive in both the short-term and longer-term credit markets,” Richard Cordray, the director of the Consumer Financial Protection Bureau, said in a statement on Thursday.

The borrowing patterns speak to a stark reality underpinning the roughly $46 billion payday loan industry: The working poor in America, a group with virtually no savings and little access to traditional bank loans, borrow to cover basic expenses.

In drafting the rules, according to interviews with people briefed on the matter, the Consumer Financial Protection Bureau, and its director, Mr. Cordray, wrestled with how to protect some of the most vulnerable consumers, without choking off credit entirely.

Driving the proposal was an analysis of 15 million payday loans by the consumer bureau that found that few people who have tapped short-term loans can repay them. Borrowers took out a median of 10 loans during a 12-month span, the bureau said. More than 80 percent of loans were rolled over or renewed within a two-week period.

Nearly 70 percent of borrowers use the loans, tied to their next paycheck, to pay for basic expenses, not one-time emergencies — as some within the payday lending industry have claimed.

Until now, payday lending has largely been regulated by the states. The Consumer Financial Protection Bureau’s foray into the regulation has incited concerns among consumer advocates and some state regulators who fear that payday lenders will seize on the federal rules to water down tougher state restrictions. Fifteen states including New York, where the loans are capped at 16 percent, effectively ban the loans.

Martin Wegbreit, a legal aid lawyer in Virginia, called payday loans “toxic,” noting that “they are the leading cause of bankruptcy right behind medical and credit card debt.”

The current economic model of low minimum wages and high payday loan fees drives people into poverty, triggering welfare payments. The U.S. government is basically transferring welfare funds to the payday loan industry.

Proposed CFPB regulations don’t go far enough, a maximum cap on loan repayments is needed. There is room for generous profit margins to compensate for the risk of lending to low income individuals without creating a “debt-trap”.

The stress and time dedicated to satisfying debt collectors amplifies the cost of being poor. Surely it would be more effective to provide access to credit, instead of wringing societies least financially secure through the payday loan system. Perhaps more money would be spent on its intended purposes, instead of paying off predatory loans.

Part of the solution could be using Post Offices as low cost banks for the poor. Sure there would be costs associated with effectively providing financial services, but the physical infrastructure and a trustworthy brand already exist. Furthermore, such a plan would provide renewed social value to an American Institution constantly under budgetary scrutiny.

Postal Banks would inject competition into the credit market, leading to better services at more competitive rates. Even if Post Office banks operated at a loss (say, giving preferential rates to low income borrowers for certain purposes), this loss may be more than offset by reduced spending on entitlement programs. More research on the cross-section between welfare recipients and payday loan borrowers is needed.

It is not a question of which of these poverty traps exists–they all exist and for some people are mutually reinforcing. This is one of the reasons social mobility is such a difficult  issue to address. Countering these different reinforcing poverty traps require the right mix of regulation, fiscal policy (progressive taxation, adequate spending on welfare programs and public services), and livable minimum wages.

In the end, lower income Americans need to overcome negative perceptions of government and vote in large numbers. Again the time crunch associated with poverty rears its ugly head; voting isn’t just a decision to go to the polls, it is also a time commitment that many cannot afford.


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Transparency Report: Stress–America’s Inter-Generational Poverty Trap

The High Costs of Being Poor in America: Stress, Pain, and Worry:

Reported stress levels are higher on average in the U.S. than in Latin America. Importantly, the gap between the levels of the rich and poor is also much greater, with the U.S. poor reporting the highest levels of stress of all cohorts.

Pain, worry, sadness, and anger (reported as experienced the day before or not) are also all significantly higher among low income cohorts than among wealthy ones, while reported satisfaction with life as a whole is significantly lower, according to our analysis of Gallup data:

The cost and pain of poverty in the U.S. less about basic goods like water and electricity than nonmaterial factors: insecurity, stress, lack of opportunity and discrimination.

Stress impacts cognitive ability. Not only do poorer people have less resources to invest in human capital, due to higher levels of stress they may benefit less from every dollar they do invest. This is the stress-based poverty trap.

Furthermore, evidence suggests that this stress-based poverty trap may be inter-generational:

Stressful experiences for expectant mothers can have detrimental effects on their unborn children:

  1. “Prenatal insults,” such as harassment and discrimination, to pregnant Californian women with Arabic names after 9/11 resulted in higher rates of low birth weight babies, according to research by epidemiologist Diane Lauderdale. Babies who gestated in the weeks after 9/11 and who were given distinctive, Arabic names experienced a two-fold increase in underweight births compared to those who gestated before. Babies born to mothers with non-Arabic names experienced no such effect.
  2. Children in utero during a 40-day ice storm crisis in Québec  had lower scores on tests of vocabulary and psychological measures at age 5.
  3. Using the timing of Ramadan as a natural experiment, economists Douglas Almond and Bhashkar Mazumder find persistent effects of prenatal fasting on disability outcomes as an adult.


Why? One strong possibility is that mothers send biological signals to their fetuses, providing information about the outside world and thereby helping prioritize different aspects of fetal development. Some scientists now believe this process actually alters which genes get “switched on” in newborns.


Are We All “Born Equal”?

Ideally, people would only have children when they are financially secure and emotionally ready. In reality this is not the case, and I for one cannot think of a way of achieving this ideal without grossly invading peoples privacy. Given this reality, how can we reduce stress levels in pregnant women?

One obvious past-due reform is legislating paid maternity leave. The U.S. is the only developed country in the world that does not mandate paid maternity leave. Considering the potential link between maternal and fetal stress levels, perhaps maternity leave should begin earlier in pregnancy. This is not only a women’s rights issue, it is a social mobility issue as well.

Other avenues for progress could be informational. Poorer women are less likely to use contraception or have abortions. Abortions are also less common among poorer women, reflecting both the cost and perhaps the percieved stigma surrounding the practice (a source of stress itself). In  “Freakonomics” Steve Dubner and Steve Levner attribute dropping crime rates in the 90s primarily to the legalization of abortions in the 70s (Roe v. Wade). While abortion may be controvertial, the effects of having unwanted children are far more costly to society.   

When considering intentional pregnancy, it is common knowledge that women take great care concerning what they ingest during pregnancy. However, notably less attention is paid to stress levels. Should doctors be informing women about the impact of stress on their unborn children? Should they be promoting stress reducing activities like prenatal yoga / meditation?

Promoting equality of opportunity and social mobility requires support at all points in life. Some people need support from birth throughout young-adulthood, others need retraining later in life, while others at certain intervals in-between. This is why we see so many different programs and proposals targeting different age cohorts: universal pre-K, subsidized meals / greater school choice in primary and secondary schools, free community college / Pell Grants / “student bill of rights“.

While it may be ideal to promote policies that reduce everyone’s insecurity, early intervention is less politically contentious. A growing body of evidence suggests the earlier the intervention, the greater the “return on investment”. Furthermore, one cannot reasonably appeal to the  “personal accountability” argument when opposing welfare programs targeting unborn / young children.

Promoting equality of opportunity and social mobility are undoubtedly difficult and expensive, but they are at the root of the American Dream. Furthermore, enabling everyone to realize their full potential spurs innovation and economic growth, and would save money later in life on welfare and criminal justice spending.

As the natural and social sciences advance and become more cooperative, insights such as this will continue to present themselves. As Americans, it is up to us to reject anti-intellectualism and false budgetary restraints, and elect leaders who will turn these insights into effective public policies.


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Conflict Watch: In Negotiations With Iran, Nuclear Rights and Nuclear Wrongs

I don’t even want to acknowledge hopefully-soon-to-be-former Prime Minister Netanyahu’s address to Congress. Thomas Friedman sums up my feelings on the situation nicely:

I think such a deal would be in America’s interest if — if — it includes Iran agreeing to constant, intrusive and unannounced inspections of, and limits on, all bomb-making capacities and if, even after the specified 10 years, there are more-than-the-usual inspections. I would also welcome Congress accompanying the deal by granting the president formal authorization — right now — to use “any means necessary” to respond should Iran try to break out of the deal.

I still don’t know if I will support this Iran deal, but I also have a problem with my own Congress howling in support of a flawed foreign leader trying to scuttle the negotiations by my own government before they’re done. Rubs me the wrong way.

Letting the Israeli Prime Minister use Capitol Hill as the backdrop for a speech meant to undermine active negotiations involving not only our government, but the governments of the worlds most powerful countries, is indefensible.

The P5+1 Iran negotiations are an example of the international community working together towards a common goal. Inviting Netanyahu to Capitol Hill did not promote American values, it undermined the very Post-WWII international order America helped build.

Update: As if inviting Netanyahu to speak was not enough, today 47 GOP senators wrote a note to Iran’s leaders in another attempt to undermine negotiations.

The end of March deadline for a framework agreement is approaching, the sides are familiar with their counterparts interests and red-lines, and potential bargaining space has become clearly defined–we will know soon whether or not an agreement can been reached.

A few key issues remain in the negotiations:

  • Nuclear rights of Iran (number of centrifuges)
  • Preventing a “sneakout” / lengthening “breakout” time (international monitoring rights / acceptable levels of uranium enrichment)
  • Easing sanctions as slowly as possible / longest possible duration of the deal
  • How to manage Iran’s nuclear activities after the “sunset” period

“Break-Out” Time and “Sneak-Out” Capacity:

The efforts focus on the fate of Iran’s three major “declared” nuclear facilities, and on lengthening the “breakout” time for Iran to produce enough fuel for a single bomb. But those declared facilities are crawling with inspectors and cameras.

Unstated is the fear of a more problematic issue, referred to as “sneakout.” That describes the risk of a bomb being produced at an undetected facility deep in the Iranian mountains, or built from fuel and components obtained from one of the few trading partners happy to do business with Tehran, like North Korea.

The goal is to “make as airtight as possible” the language that would allow highly intrusive inspections to track the precursors and parts that feed Iran’s uranium complex, according to one participant in the negotiations.

The American officials are highly attuned to the findings of a once-classified 2007 National Intelligence Estimate that concluded that Iran ended its headlong race for a bomb in late 2003. But it also concluded that smaller-scale activity continued, and warned that “Iran probably would use covert facilities — rather than its declared nuclear sites — for the production of highly enriched uranium for a weapon.”

Behind the efforts to close a nuclear deal with Iran this weekend lies a delicate question that has been little discussed in public: how to design an agreement to maximize the chances that Western intelligence agencies would catch any effort to develop an atomic bomb at a covert site.

During his interview with Charlie Rose, Morell warned that the focus on declared centrifuges is misplaced, because he expects that if Iran were to try to build a bomb, it would do so in secret. The only protection against that, Morell said, is unannounced inspections at any place in the country at any time.

“If you are going to have a nuclear weapons program, 5,000 is pretty much the number you need,” Morell, now a CBS analyst, said on Charlie Rose. “If you have a power program, you need a lot more. By limiting them to a small number of centrifuges, we are limiting them to the number you need for a weapon.”

This fact that bombs require fewer centrifuges than power is a source of frustration for Albright, a physicist with the Institute for Science and International Security.

“I wish it were reversed,” he told us. “Then we could easily tell if the program was for weapons.”

A bomb requires about 25 kilograms of U-235 enriched to the 90 percent level. If an agreement limits Iran to about 9,000 centrifuges, that would be sufficient to produce enough bomb-grade material but would leave Iran well short of the capacity to generate fuel to power nuclear power plants.

The “Sunset” Problem:

One major issue is the “sunset” problem — that is, what happens after the accord, which would limit Iran’s nuclear program in return for lifting economic sanctions, expires. The length of the accord has not been decided, but it could be 15 years or less.

Prime Minister Benjamin Netanyahu of Israel expressed alarm in his Tuesday address before Congress that Iran would be free to vastly expand its network of centrifuges, which are used to enrich uranium, after the accord ends. That, Israeli officials have argued, would greatly compress the time that Iran would need to develop nuclear weapons and would encourage Arab nations in the region to follow suit.

Administration officials assert that that criticism is off base. But they have yet to detail what combination of verification measures and possible constraints on Iran’s nuclear activities would remain in place.

This has become the main sticking point. I have heard ideas floated of pre-authtorizing U.S. military / UNSC response as a deterrent. The international community needs an effective and possibly automatic mechanism in place should Iran decide to pursue nuclear weapons during / after any potential agreement.

Deal or No-Deal?:

As a Jewish-American, I am as apprehensive as anyone about the idea of a nuclear Iran. But in order to move forward we must recognize the nuclear rights of the Iranian people, while addressing the legitimate security concerns a nuclear Iran would cause.

I have heard people argue that Iran does not need nuclear power because it is an oil producer. But from the perspective of sustainable development, building a nuclear power industry would help Iran diversify it’s economy and produce zero emission energy.

While the P5+1 nations are clearly negotiating from stronger economic ground, it could be argued that Iran is negotiating from a stronger geopolitical position. The Iranian government, while lacking in may human rights aspects, does a decent job of meeting the economic and security needs of its people. Furthermore, Iran is contributing significant ground troops in the fight against ISIL, something that is in short-supply in the American led coalition.

Given the current security context in the Middle-East, a challenge to the Khamenei regime is unlikely. The Iranian leadership knows the international community needs as many stable parties in the region as possible. The narrative of a power asymmetry between the two sides–that Iran needs a deal more–has been overblown.

It has been acknowledged by all sides that negotiations are a long-shot. President Obama recently said any agreement would have to include at least a 10 year freeze of sensitive nuclear activities, an idea the Iranian camp quickly stated was “unacceptable But the two sides continue to talk, showing that despite harsh rhetoric bargaining space still exists. Progress continues to be made, and all evidence suggests Iran is not using negotiations to stall while developing a nuclear bomb:

“Over the last year and a half, since we began negotiations with them, that’s probably the first year and a half in which Iran has not advanced its nuclear program in the last decade,” Obama said in a December 2014 conversation with CNN’s Candy Crowley.

Obama’s comments were largely accurate, according to experts. The agreement signed in November 2013 has made it harder for Iran to produce weapons-grade nuclear material, we found. International observers report that Iran complied with the terms of the temporary agreement. The amount of enriched uranium is less, and the country’s facilities to produce weapons-grade material has been curtailed.

Getting a deal done is not determinant of success. A bad deal is not better than no deal, it is just a bad deal; coming away with an agreement just to claim a diplomatic success would be catastrophic. But, contrary to what Bibi would have you believe, a deal with Iran need not be inherently “bad”.

In my opinion, a failure of the negotiation process would not be failing to reach a deal. A failure would be letting prejudices and distrust undermine the possibility, however remote, of reaching a “good deal”.

Regardless of the outcome, these negotiations have brought to the forefront certain issues Ayatollah Khamenei can no longer hide from. Is Iran’s nuclear program for peaceful or military purposes? Whats more important, Iranian national sovereignty or the standard of living of Iranian people? These questions will be answered by actions, not words, for the whole world to see. 

In the event of no-deal, it will be important that the international community can credibly claim they did everything they could, and that Iran was an unreasonable negotiating partner. In order to meet this criteria, we must ask for meaningful concessions from Iran (long-term unfettered access by inspectors, slow easing of sanctions) and making meaningful concessions ourselves (recognizing Iran’s legitimate nuclear rights).

Despite efforts from all sides to derail the negotiations, it appears all diplomatic avenues are thankfully being exhausted.


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Its Human Rights, Stupid!

Two weeks ago, the Obama Administration hosted a summit in Washington D.C. on countering violent extremism. With terrorist organizations such as ISIL and Boko Haram massacring people with relative impunity, high ranking government officials from around the world, representatives from the United Nations, and experts in the field came together to discuss how best to counter such groups.

Without trivializing the essential role of military operations, there is a growing consensus that a comprehensive, multi-dimensional approach is needed to effectively counter terrorism. A military response alone does not address the root causes which enable the formation and continued operation of extremist organizations, and can be counter-productive by fueling anti-Western propaganda (drone warfare has been particularly contentious in this regard).

An important component of this multi-dimensional approach is the promotion and protection of human rights. This sentiment was echoed by both President Obama and Secretary General Ban Ki-moon.

Obama:

As he sought to rally the world behind a renewed attack on terrorism, President Obama argued on Thursday that force of arms was not enough and called on all nations to “put an end to the cycle of hate” by expanding human rights, religious tolerance and peaceful dialogue.

But the challenge of his approach was staring him right in the face. His audience of invited guests, putative allies in a fresh international counterterrorism campaign, included representatives from some of the world’s least democratic and most repressive countries.

Critics say the terrorism fight has simply enabled autocratic regimes to go after their political foes without worrying about American disapproval. Egypt’s leaders, for instance, have moved to stifle the Muslim Brotherhood, the opposition group they deem too radical. “It is futile to distinguish between bad terrorists, which must be defeated, and good terrorists, which can be accommodated,” Mr. Shoukry said.

The White House acknowledged the disconnect between advocating human rights and teaming up with human rights violators. But aides said it was one Mr. Obama had learned to live with, given the importance of maintaining an international coalition to fight the Islamic State and other terror threats.

“It’s a perennial challenge of the U.S. government that some of our partners are much more aggressive than others in how they define their domestic terrorist challenge,” said Benjamin J. Rhodes, a deputy national security adviser to Mr. Obama. That dynamic is “most obvious in Egypt, where essentially there’s been a very broad brush in terms of who represents a terrorist threat.”

“When people spew hatred toward others because of their faith or because they’re immigrants, it feeds into terrorist narratives,” Mr. Obama said. “It feeds a cycle of fear and resentment and a sense of injustice upon which extremists prey. And we can’t allow cycles of suspicion to tear the fabrics of our countries.”

Ban Ki Moon:

“Let there be no doubt,” Mr. Ban proclaimed to a room full of high-level delegates including US Secretary of State John Kerry, “The emergence of a new generation of transnational terrorist groups including Da’esh [or the Islamic State of Iraq and the Levant] and Boko Haram is a grave threat to international peace and security.”

“These extremists are pursuing a deliberate strategy of shock and awe – beheadings, burnings, and snuff films designed to polarize and terrorize, and provoke and divide us,” the UN chief added, commending UN Member States for their political will to defeat terrorist groups and at the same time, urging them to stay “mindful of the pitfalls.”

“Many years of our experience have proven that short-sighted policies, failed leadership and an utter disregard for human dignity and human rights have causes tremendous frustration and anger on the part of people who we serve,” the UN chief said.

…preventing violent extremism requires a multi-pronged approach. While military operations are crucial, they are not the entire solution. “Bullets are not the silver bullet,” Mr. Ban said, emphasizing that while missiles may kill terrorists, good governance kills terrorism.

“Human rights, accountable institutions, the equitable delivery of services, and political participation – these are among our most powerful weapons,” the Secretary-General stressed.

Why Isn’t More Done?

If such a consensus exists around the significant role human rights violations play in a variety of negative outcomes (including violent extremism), why don’t policymakers do more to promote human rights? One explanation is that human rights encompass many issues: economic, social, cultural, political and civil rights. Furthermore, no consensus exists with regards to the hierarchy of human rights. Fulfilling some human rights obligations are inherently expensive (economic and social rights), while others have more to do with those in power loosening their grip (political, civil, and cultural). In other words, human rights include both positive and negative rights. Which rights should be prioritized in a world of finite resources and political capital?

I am of the camp that believes human rights are inter-dependent; one human right violation enables others, culminating in armed conflict and/or “extreme poverty”. Therefore, there really is no hierarchy. The exception to this rule is the right to life / security; a violation of this right (murder) is permanent and obviously must be upheld before other rights can be considered. This reality is often bastardized to justify restricting rights in the name of security, an issue I will address later in more detail.

Another issue is that the “ends” of promoting some human rights are not immediate, which historically has made verifying progress difficult. To this end, the UN’s Post-2015 Task Force has placed an emphasis on developing indicators for previously non-quantifiable aspects of human rights. These indicators can help verify when progress is being made on longer-term goals, and when ineffective programs need to be adjusted or scrapped.

Promoting and protecting human rights, while admittedly an ambitious goal, gives direction to sustainable development agendas (likes the SDGs / post-2015 development agenda) in both “first world” countries and the world’s least developed countries. Specifically which rights should be prioritized is context sensitive and should be identified through the democratic process.

Problems With Partners

Many of America’s partners, particularly in the Middle-East, are authoritarian regimes which do not share our beliefs in pluralism and human rights. These regimes tend to fight extremism by further restricting peoples rights in the name of security, exacerbating a vicious cycle of violence, under-development / poverty, and human rights abuses. They often characterize any dissenters as “terrorists”, even if their actions are entirely peaceful.

But relying solely on “Western” actors is not financial sustainable or effective, as it fuels the “Western Imperialism” terrorist narrative. Regional partners must play a leading role in combating extremist activities and ideologies. Although imperfect, we must work with these partners as they are, while simultaneously cultivating local support for human rights. 

Even our “democratic” allies may find it in their best interest to restrict certain rights. Take Egypt for example, where extremist violence has led to popular support for an unaccountable military regime. One could certainly argue that it is in the Egyptian governments best interest to manage, but not eliminate, violent extremism.

And of course, the American-led coalition has its limits–for example, it refuses to work with the Assad despite the military benefits such a partnership would entail.

The Case for an American National Human Rights Institution:

Human rights accountability outlines the responsibilities of different actors–corporations, the public sector, international development organizations, NGOs, and civil society–in promoting and protecting human rights.

National Human Rights Institutions (NHRI), which have proliferated over the past two decades, can act as human rights watchdogs. These institutions are most effective when they have a strong mandate, a working relationship with the criminal justice system, and receive their funding independently of federal budgetary decisions.

The unfortunate irony is that in the very places that could benefit the most from effective NHRIs, these conditions are not met. Critics argue NHRIs are ineffective and put in place to create the illusion of promoting and protecting human rights. While this may be true in some cases, it is not in all; ultimately, NHRIs can be as effective or ineffective as their mandates and operating space allow.

The absence of an American NHRI is particularly conspicuous. While America does have strong protections of many rights, it lags in other areas (particularly privacy concerns). A NHRI could provide a forum for people to directly address grievances against the government. Perhaps the whole Snowden debacle could have been averted with a functioning ombudsman system.

An American NHRI could be an political mouthpiece for people, helping to restore faith in the American government (which, sadly, is the lowest amongst the financially insecure–the very people who could benefit from public policy the most). Who knows, an American NHRI institution could play a part in jump-starting stagnant wages and promoting social mobility! While far from a cure-all, an American NHRI could “punch above its weight” in terms of resources required to run it.

Perhaps most importantly, an American NHRI would act as a model for NHRIs in other countries, assisting with financial support, technical knowledge, and capacity building. An American NHRI would unaccountably be a strong voice within the the international coordinating committee (ICC) of NHRIs.

These are hypothetical results, and the presence of effective NHRIs does not mean the realization of human rights would progress in a perfectly linear fashion. The closer people get to acquiring new rights, the harder vested interests dig in against them. This is what is playing out now in the Middle-East and in the Ukrainian Civil War–extremists and authoritarians clinging to the remnants of an old order.

The power of effective democratic governance and a human rights based approach to development is truly awesome. Next time someone asks how America can promote progressive values both at home and abroad, just tell them “it’s human rights, stupid!”

Note: This blog focused exclusively on the relationship between human rights and violent extremism. Click the following links for more information on the linkages between human rights, armed conflict, and economic development (which are themselves related root causes of violent extremism).

In Development as Freedom, Amartya Sen argues promoting human rights is not only a means to an end (“positive peace“, sustainable development, poverty and inequality reduction), but also an important end in itself (empowering people, enabling self-determination)–I fully agree!

Taking a holistic view of the benefits of upholding international human rights norms, an even stronger argument can be made for their promotion and protection.


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Greece, Birthplace of Democracy, Needs A Democratic Lifeline

No More Blood From A Greek Stone:

It appears Greece’s government has come up with a list of reforms it and its creditors can agree upon in return for 4 months of bridge financing to restructure the conditions of a longer-term growth strategy.

By trading structural reforms for fiscal space, each major player (Greece and Germany) is making major concessions in the name of pragmatism. Germany is relaxing its dogmatic belief  in fiscal targets to provide the Greek government with the fiscal space needed to restructure its economy without exacerbating its “humanitarian crisis”. Greece, in return, must officially bring to an end the era of lax tax collection and over-rigidity in the labor market.

Both sides are making major concessions, neither side is 100% happy, and its appears as if middle ground has been found–all signs of a meaningful compromise. One can only hope that when Greece’s list of reforms comes in on Monday, both sides of this debate remain on the same page:

Greece’s list of reforms to be submitted to the euro zone on Monday comprises pledges on structural issues such as tax evasion and corruption over the next four months without specific targets, a government official said on Saturday.

The accord requires Greece to submit by Monday a letter to the Eurogroup listing all the policy measures it plans to take during the remainder of the bailout period.

If the European Commission, the European Central Bank and the International Monetary Fund are satisfied, the Eurogroup is likely to endorse the list in a teleconference without the need for a formal meeting. Then euro zone member states will need to ratify the extension, where necessary through their parliaments.

There will not be specific figures or targets to be achieved tied to the goals, the official said, adding that the two sides had not yet discussed how Greece would be evaluated on the reforms.

EU officials and euro zone ministers said they had no reason to think Greece would not come up with a satisfactory list of measures on Monday night. However, some hawkish countries have insisted that if there are doubts, the Eurogroup would have to reconvene in Brussels.

Structural reforms are inherently difficult to implement. In order to make the difficult task of taking on strong interest groups politically possible, an overwhelming popular mandate is needed. The need for strong public backing becomes even more important during times of high unemployment, when those lucky enough to remain employed are (quite rationally) more afraid of losing their jobs.

According to a recent opinion poll, 68% of Greeks want a “fair compromise” with the EU; even after years of economic suffering, the vast majority of Greeks remain steadfast in their believe in the E.U.. Such support must be seized upon, it will not last forever.

What Greece needs now is a pro-growth, structural reform based bailout plan, not a continuation of its failed blood-from-a-stone internal-devaluation based “recovery”. Reducing it’s primary surplus while collecting greater tax receipts would open up the fiscal space Greece needs to both deal with its humanitarian crisis and create a safety-net for those adversely affected by labor market reforms as the economy readjusts. 

The past 6 years have had a deep psycho-economic effect on the Greek people. With overall unemployment at 26% and youth unemployment at 50%, to go along with a 24% contraction in GDP, the Greek economy has been ravaged. Lack of control over monetary policy (as all members of the Eurozone face) has limited Greece’s policy space, it must be allowed to regain some control over fiscal policy.

Greeks have suffered enough and have learned their lessons–these next four months are an opportunity to prove it. In addition to any external monitoring imposed as part of this deal, the Greek people must prove they can be their own corruption watchdog and can pay their taxes.

Fighting wealthy tax evaders may be a popular political platform and merited on social justice grounds, but in order to pay-down Greek debt without compromising human development, a widespread cultural acceptance towards paying taxes is required. There is no doubt Greece has been too lax in collecting taxes in the past, but this does not need to be an irrevocable problem. Through legislative reform and social accountability, Greece can overcome it’s culture of tax evasion.

Locking in long-term labor market reforms, without driving more people into poverty and exacerbating the “lost generation” of young Greeks, should be the mutual goal between Greece and it’s creditors. In fact, this could be a potential blueprint for other economically depressed European countries to renegotiate their social contracts with the EU. Democratic governance derives its legitimacy from the will of the governed; if peoples basic needs are not met, democratic governance cannot be sustained.

Greece is not in the clear yet. But by finding this acceptable middle ground, the foundations of a sustainable solution for keeping the Eurozone intact may have been laid.

Reversing the Democratic Recession:

Neither side of this debate should have to pretend that keeping the Eurozone unified is an unimportant political, economic, foreign relations and security consideration. Greece staying in the E.U. is important for Greece, Germany, the E.U. and any country with aspirations of democratic governance:

[Stamford University democracy expert] Diamond adds, “perhaps the most worrisome dimension of the democratic recession has been the decline of democratic efficacy, energy, and self-confidence” in America and the West at large. After years of hyperpolarization, deadlock and corruption through campaign financing, the world’s leading democracy is increasingly dysfunctional, with government shutdowns and the inability to pass something as basic as a budget. “The world takes note of all this,” says Diamond. “Authoritarian state media gleefully publicize these travails of American democracy in order to discredit democracy in general and immunize authoritarian rule against U.S. pressure.”

If anything, the U.S. has been the poster-child for prosperity through democracy compared to the E.U.. Regardless, twin “democratic recessions” of varying degrees on both sides of the Atlantic have compromised the appeal of democratic governance abroad. Spreading Islamophobia, antisemitism, and xenophobia throughout Europe–side effects of Europe’s failed economic policies–compromise the appeal of Western values and galvanize authoritarian and extremist messages. 

ISIS finds itself at Italy’s back-door geographically in Libya. But ideologically, ISIS could not be further away from European ideals. Ultimately, reversing the democratic recession and countering authoritarian and extremist ideals requires. among other things, proving democracy remains a viable path to widespread freedom and prosperity.

“Western” countries cannot push Greece towards China / Russia for a bailout. We, like Greece, finds ourselves at an inflection point–we must  prove that democracy in a first world country can satisfy peoples basic needs. Failure to do so could lead to a long-term setback in promoting modernization, human rights, and democratic governance in the worlds least developed countries.

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