July | 2013 | Normative Narratives

July 27, 2013
by bzupnick 1 Comment

Conflict Watch: The Situation in Egypt is Spiraling Out of (Into?) Control

A little more than a week before the Egyptian coup that resulted in the ouster of Egypt’s first democratically elected leader Mohamed Morsi, I went on the record as being critical of any non-democratic means of removing Morsi from office. At the time, and still today, defending Morsi certainly puts one on the less popular side of the debate:

(recap)

I have written many times about the democratic experiment in Egypt here at NN. Egypt is an interesting country, it is the most populous country in the Middle-East, and has a long history of cooperation with Western powers (the U.S. funds the Egyptian military). Egypt’s armed forces will play a crucial role in preventing the Syrian Civil War from turning into a regional conflict (and in maintaining regional security in general). While Turkey is another example of an Islamic state attempting to reconcile democracy and traditional Islamic values, there is something about Egypt’s geographical position that makes it seem like a more robust test of the compatibility of the two ideologies (perhaps Turkey seems European-ized–it is actually seeking EU membership–which may isolate it from more conservative Muslim’s, whereas Egypt is in Africa, which could be more agreeable to those same factions).

For these reasons, alongside the human rights and modernization implications of effective democratic governance, I have been cheering Morsi on in his attempt to bring democracy to Egypt. Sometimes I have been too understanding; Morsi has made mistakes along the way, including targeted violations of the civil rights of his opponents in the name of national security / democracy. President Morsi has owned up to these mistakes, and now seems to have learned what it takes to lead an effective democracy.

Transparency, rule of law, accountability / anti-corruption, personal and societal security, an inclusive and participatory governing process, and the indiscriminate protection of human rights are among the most important aspects of an effective democracy. Morsi has (hopefully) learned that seeking to strengthen the legitimacy of his regime by violating these aspects of democracy, even in the name of national security, is counter-productive. Self-defense is fine, but short of that the opposition must be allowed to assemble. In a religious dictatorship the opposition are terrorists / saboteurs / infidels; in an effective democracy they are simply the opposing political party (again, so long as they use political and not military means to advance their goals).

President Morsi has proposed national reconciliation efforts, including making amendments to the constitution (which was open for vote to begin with, the opposition simply refused to participate). He has also proposed the opposition take part in parliamentary elections. Judicial independence has been tricky, as many of the judges in Egypt were assigned under former dictator Hosni Mubarak (packing the courts with his own judges would not ease concerns of a Morsi power-grab either; anyone he appoints, regardless of his background, would be seen by his opponents only as a “Morsi appointee”. Nevertheless, Morsi has offered basically every legitimate democratic avenue available to address the concerns of his opposition.

The opposition, on the other hand, has refused to take part in the democratic process. It will be satisfied with nothing short of Morsi’s removal from office, calling for early presidential elections. Is that any way to establish the credibility of a brand new democratic process, by tossing that process aside instead of trying to work within it? Early elections would undermine the future of democracy in Egypt by setting a bad precedent.

—

A week after that blog, the Egyptian military gave Morsi a 48 hour deadline before they would step in and remove him from power–and then made good on that threat

I had this to say in reaction to the coup:

General Asis, by giving Morsi a 48 hour period to negotiate, had already made up its mind about overthrowing Egypt’s first democratically elected leader. 48 hours is not enough time to make meaningful progress on negotiations— all such an unrealistic time frame did was further entrench the opposition’s position to refuse to come to the negotiating table.

Give Morsi 6 months, or a year; an amount of time that allow the opposition to prove its legitimacy, and do something other than stand on its head and watch fireworks and light shows. So far all the opposition has shown is extreme, borderline irrational hatred for Morsi (and the Brotherhood, a hatred that has included decades or persecution under the Mubarak regime) and the inability to participate in the democratic process. Why should we believe that now democracy will work in Egypt?

The Military missed a golden opportunity to play arbiter between Morsi and the opposition, upholding both the principles of democratic institutions while also ensuring an inclusive agenda setting and policy making process consistent with international human rights norms. Instead the coup undermines the very ability of democracy to take root in Egypt, and creates far more questions than provides answers.

It was encouraging to see diverse interests standing alongside General Abdel Fattah el-Sisi. However, the shutting down of Muslim Brotherhood news stations and arrests / killings of Morsi supporters paints a grim picture for the future of the Muslim Brotherhood in Egypt. What bothers me is what will happen to those not in the meetings mapping out Egypt’s future–namely the Muslim Brotherhood. Suspensions of freedoms of expression and media independence are also alarming, and make for an unstable basis on which to build a new democracy.

How the new government and the Muslim Brotherhood interacts will determine the ability of Egypt to move forward as a cohesive and peaceful democratic society. If the Brotherhood reacts violently, Egypt may be mired in civil violence for years to come. Only if the Muslim Brotherhood and opposition embrace one-another (admittedly a long shot, at least right away, and one that would require significant political and diplomatic maneuvering) can the new government truly represent all factions of Egyptian society. A modernized Egypt that treats Muslims Brotherhood members as second class citizens can never be a true democracy.

I think the coup came down to Egyptians needing a scapegoat, and Morsi’s regime being in the right place at the right time. Nobody in Egypt wants to admit there are structural economic issues; popular fuel subsidies are unsustainable and large investments need to be made in Egypt’s infrastructure and public services. High unemployment, inflation, and insecurity depress economic output and create a basis for anti-establishment behavior. Egyptians want a President who will tell them they can have their cake and eat it too; perhaps this new coalition government will be able to deliver if they are able to secure a loan from an alternative source without IMF preconditions. I for one do not see where that funding could come from.

Sooner or later difficult fiscal decisions are going to have to be made in Egypt, and not everyone is going to be happy. Are they going to overthrow the next president too? I just do not like the precedent that was set–perhaps I am being idealistic instead of pragmatic. It may be that a stronger democracy comes from this military coup, we will have to wait and find out.

—

Since these events took place, many of the questions that arose from the Egyptian military coup have answered themselves (an excellent analysis of the events leading up to and since Morsi’s ouster was compiled compliments of Reuters). The Brotherhood has not embraced the armies calls for an inclusive road-map to an effective and pluralistic democracy. Instead, they have elected to continue mostly non-violent protests against the Egypt’s interim government which they refuse to recognize as legitimate.

The interim government’s Cabinet was established without a single Brotherhood member, but it did include military head General Sisi as first deputy Prime Minister. Media outlets that appear to be understanding of the Brotherhood’s dismay have been shut down, including Al-Jazeera’s Cairo branch. Fifty plus Morsi supporters were massacred during prayer where Morsi is believed to be held–ensuing investigations have been not into military conduct (of course not–in Egypt the military is above the law), but against Brotherhood leaders for inciting protests.

Throwing salt on the Bortherhood’s wounds (and fuel on the protester fire), Morsi was recently charged with espionage and murder in connection to his escape from jail in 2011. Morsi was a prisoner of former dictator Hosni Mubarak–charging him for a crime against a popularly disposed dictator seems to run against the armies stated goals.

The U.S. government will continue to provide military aid to Egypt, exonerating itself from taking a stand on exactly what happened in Egypt (although it has rightfully called for Egypt’s new leaders to release Morsi from jail):

The senior official did not describe the legal reasoning behind the finding, saying only, “The law does not require us to make a formal determination as to whether a coup took place, and it is not in our national interest to make such a determination.”

“We will not say it was a coup, we will not say it was not a coup, we will just not say,” the official said.

The alternative source of funding I could not foresee came through from Kuwait, Saudi Arabia, and the United Arab Emirates to the tune of $12 billion in oil products, foreign reserves, and loans / grants. All three of these countries are monarchies, making interesting bedfellows for a country attempting to establish effective and pluralistic democracy. This will allow the Egyptian government to delay cuts to popular subsidies, a precondition for an IMF loan:

“The interim cabinet, chosen this week after the military ousted Islamist President Mohamed Mursi, will probably avoid politically risky reforms of the budget such as cutting the subsidies on which Egypt’s millions of poor depend.

Instead the new cabinet which includes many technocrats and experienced administrators will try to buy social peace with billions of dollars of foreign aid, offered largely by wealthy Gulf Arab states.”

“If the strategy to boost growth fails, the next elected government could take office facing an even bigger cash crunch, forcing it into unpopular decisions early on.

“The concern is that once there is some more permanent government, it will inherit an even bigger economic mess than the one the Mursi administration had,” said Said Hirsh, an economist with London-based consulting firm Volterra Partners.”

—

Is Egypt spiraling into or out of control? I suppose the answer you receive to that question would depend on who you ask. Ask a Morsi opponent, and he will tell you that the Morsi regime was little more than an illegitimate power-grab. Ask a Morsi supporter and they will tell you Morsi’s failures were due to the “deep state” (military, police, judiciary) and a refusal of his opponents to embrace the democratic process, undermining his rule.

So instead lets look at the indisputable facts. Sectarian divides are stronger now than they were when Mubarak fell–did the coup avert a civil war, or lay the foundation for civil conflict? Human rights are not being upheld in an indiscriminate way, as anybody that supports Morsi may be silenced with impunity by the military (either by having media outlets shut down / being arrested / or killed). A larger budget deficit is all but certain for Egypt’s next democratically elected government.

In Egypt, as long as the army has a popular mandate (or what it deems a popular mandate), it can act with impunity. Human rights violations, unsustainable fiscal policy and government deficits, media censorship, and lack of accountability from the military are week pillars to build democracy on.

Having said all this, there does seem to be a legitimacy with the new Egyptian coalition government; it has said all the right things and seems to back the will of Egypt’s pluralistic civil society. But actions speak louder than words, and the actions of Egypt’s military and interim government–combined with The Muslim Brotherhoods determination to play spoiler in Egypt’s second attempt at democratization–does not bode well for the implementation of Egypts “road-map to democracy”.

If the strategy to boost growth fails, the next elected government could take office facing an even bigger cash crunch, forcing it into unpopular decisions early on.

Update
Oh boy, it’s looking bad for the Brotherhood and Egyptian democracy:

“The Egyptian authorities unleashed a ferocious attack on Islamist protesters early Saturday, killing at least 65 people in the second mass killing of demonstrators in three weeks and the deadliest attack by the security services since Egypt’s uprising in early 2011.

The attack provided further evidence that Egypt’s security establishment was reasserting its dominance after President Mohamed Morsi’s ouster three weeks ago, and widening its crackdown on his allies in the Muslim Brotherhood. The tactics — some victims were killed with single gunshot wounds to the head — suggested that Egypt’s security services felt no need to show any restraint.”

“In a televised news conference hours after the clash, Interior Minister Mohamed Ibrahim absolved his men of any responsibility and made no mention of the high death toll. His officers, he said, ‘have never and will never shoot a bullet on any Egyptian.'”

In Egypt, it appears the military is the judge, jury, and executioner, as well as the President, PM, Cabinet….

July 26, 2013
by bzupnick 2 Comments

Transparency Report: Prison Paradox Redux

A few months back, I blogged about what I termed the “Prison Paradox“:

“The number of Americans in state and federal prisons has quintupled since 1980, and a major reason is that prisoners serve longer terms than before”

“The shift to tougher penal policies three decades ago was originally credited with helping people in poor neighborhoods by reducing crime. But now that America’s incarceration rate has risen to be the world’s highest, many social scientists find the social benefits to be far outweighed by the costs to those communities.”

“‘Raymond V. Liedka, of Oakland University in Michigan, and colleagues have found that the crime-fighting effects of prison disappear once the incarceration rate gets too high. “If the buildup goes beyond a tipping point, then additional incarceration is not going to gain our society any reduction in crime, and may lead to increased crime,’ Dr. Liedka said.”

“‘Prison has become the new poverty trap,’ said Bruce Western, a Harvard sociologist. ‘It has become a routine event for poor African-American men and their families, creating an enduring disadvantage at the very bottom of American society.’

Long-term lockup rates, and poor job prospects for ex-cons, great a “prison culture” in poor neighborhoods. Older ex-con’s believe a return to jail is inevitable, young children believe jail is inevitable (because of what they have witnessed growing up); this pessimism leads to poor decision making and ultimately creates a self-fulfilling cycle of poor prospects, poor decision making, and subsequent prison terms (and perpetuates the inter-generational aspect of the poverty trap).

As the federal and state governments look for areas to make spending cuts, it would be beneficial for policymakers to revisit reducing prison sentences for certain crimes. It seems that shorter prison sentences would save money today via a lower prison bill, and save us money in the future in the form of lower future entitlement spending. Less spending on long prison terms and greater spending on social programs (which enhance ones future prospects and thus makes crime a less attractive alternative) should combine to break the “prison poverty trap”.

—

Evidence of a drop in U.S. prison population suggests that law-makers are beginning to take a more pragmatic approach towards punishing criminal activity:

“The prison population in the United States dropped in 2012 for the third consecutive year, according to federal statistics released on Thursday, in what criminal justice experts said was the biggest decline in the nation’s recent history, signaling a shift away from an almost four-decade policy of mass imprisonment.”

“The number of inmates in state and federal prisons decreased by 1.7 percent, to an estimated 1,571,013 in 2012 from 1,598,783 in 2011, according to figures released by the Bureau of Justice Statistics, an arm of the Justice Department. Although the percentage decline appeared small, the fact that it followed decreases in 2011 and 2010 offers persuasive evidence of what some experts say is a “sea change” in America’s approach to criminal punishment.”

“In recent years, tightened state budgets, plummeting crime rates, changes in sentencing laws and shifts in public opinion have combined to reverse the trend. Experts on prison policy said that the continuing decline appears to be more than a random fluctuation.”

“Most observers agree that the recession has played a role in shrinking prison populations.”

“Though the trend may have begun out of a need for belt-tightening, it had grown into a national effort to rethink who should go to prison and for how long”

“Changes in state and federal sentencing laws for lower-level offenses like those involving drugs have played a central role in the shift, he and others said, with many states setting up diversion programs for offenders as an alternative to prison. And some states have softened their policies on parole, no longer automatically sending people back to prison for parole violations.”

“Changing public attitudes are also a major driver behind the declining prison numbers. Dropping crime rates over the last 20 years have reduced public fears and diminished the interest of politicians in running tough-on-crime campaigns. And public polls consistently show that Americans are now more interested in spending money on education and health care than on building more prisons.”

“A year or even two years is a blip and we shouldn’t jump to conclusions, but three years starts to look like a trend,” said Marc Mauer, executive director of the Sentencing Project, a nonprofit research group based in Washington. But he said that the rate of inmates incarcerated in the United States continued to be “dramatically higher” than in other countries and that the changes so far were “relatively modest compared to the scale of the problem.”

It should be emphasized that this is only the tip of the iceberg. But progress must start somewhere, and both empirical evidence and public opinion appear to have shifted the way that law-makers address criminal punishment.

Less money spent on prisons opens up fiscal space for crime prevention and deterrence programs.

Crime prevention programs hit on the root causes of criminal behavior– a combination of socio-economic realities and a criminal / prison culture that often makes a life of crime a self-fulfilling and then self-perpetuating reality. By investing more in schools, healthcare (including mental healthcare, which is unquestionably linked to anti-social and criminal behavior), and other social programs that promote meritocracy and social mobility, disenfranchised youths will have more reason to be optimistic and make long-term investments in themselves that reflect that optimism. By having less parents in jail and more at home, parental income and guidance can act as a substitute for gang affiliation and money from criminal activities.

Part of non-jail punishment for minor criminal activities should be education on the detrimental effects of crime on youth and society, so that those who are given a fresh chance pass on these lessons to a younger generation which looks up to them.

Crime deterrence involves education on the detrimental effects of crime on oneself and society (overlapping with crime prevention), and increased spending on police officers. Having more officers on the street makes crime a less appealing alternative (especially in an environment where alternatives actually exist), while also providing security for hard working innocent people (who ultimately pay not only for both operating prisons and police officers via taxation).

—

People need to be held responsible for their actions, but the punishment must fit the crime. Making an example of individuals in an attempt to deter future crime does not work. What it does is impose an unfair burden on both the tax-payer and creates a vicious cycle of socio-economic degeneration that disproportionately affects poor people and minorities.

Violent criminals and multiple offenders must be kept off the streets. But imposing long jail sentences on first-time-non-violent offenders and parole violators can be counter-productive, turning misguided individuals into career criminals.

In assessing the impacts of a more restrained and pragmatic approach to prison sentencing, we must wait for significant reductions in incarceration rates as well as a “time lag”, as human development is a dynamic process. For now, we can be optimistic that after decades of misguided policy, we seem to have hit a turning point.

“This is the beginning of the end of mass incarceration,” said Natasha Frost, associate dean of Northeastern University’s school of criminology and criminal justice.

July 20, 2013
by bzupnick 3 Comments

Economic Outlook: The G20, Austerity v. Stimulus, Growth and the Right to Development

Original article:

“The Group of 20 nations pledged on Saturday to put growth before austerity, seeking to revive a global economy that “remains too weak” and adjusting stimulus policies with care so that recovery is not derailed by volatile financial markets.”

“Finance ministers and central bankers signed off on a communiqué that acknowledged the benefits of expansive policies in the United States and Japan but highlighted the recession in the euro zone and a slowdown in emerging markets.”

“Officials backed an action plan to boost jobs and growth, while rebalancing global demand and debt, that will be readied for a G20 leaders summit hosted by President Vladimir Putin in September.

“Sources at the meeting said Germany was less assertive than previously over commitments to reduce borrowing to follow on from a deal struck in Toronto in 2010, with the improving U.S. economy adding weight to Washington’s call to focus on growth.

With youth unemployment rates approaching 60 percent in euro zone strugglers Greece and Spain, the growth versus austerity debate has shifted – reflected in the fact that G20 finance and labor ministers held a joint session on Friday.”

“The G20 accounts for 90 percent of the world economy and two-thirds of its population – many living in the large emerging economies at greatest risk of a reversal of capital inflows that have been one of the side effects of the Fed stimulus.

‘One thing we would like to emphasize is the importance of coordination,’ said Indonesian Finance Minister Chatib Basri, cautioning that scaling back policies of quantitative easing elsewhere “immediately affects” emerging markets.”

“The International Monetary Fund warned that turbulence on global markets could deepen, while growth could be lower than expected due to stagnation in the euro zone and slowdown risks in the developing world.

‘Global economic conditions remain challenging, growth is too weak, unemployment is too high and the recovery is too fragile,’ Managing Director Christine Lagarde told reporters. ‘So more work is needed to improve this situation.'”

—

Yesterday I discussed the coordinating role groups such as the G20 play in today’s globalized economy. That post focused specifically on coordinating efforts to curb corporate tax-evasion. Today’s article emphasizes that fiscal and monetary policies must also be coordinated in order to achieve sustainable human development on a global scale.

Fiscal stimulus efforts must be coordinated; if they are not, the benefits of an individual countries stimulus programs will not be fully realized. Consider a hypothetical jobs program in the U.S. If this program is enacted unilaterally, then depressed demand in export markets (ex E.U.) will cause increased production capacity in the U.S. to lead not to greater trade but surplus goods and lower prices–employment gains will not be sustained by the private sector and will likely be reversed once stimulus money runs out. However, if fiscal stimulus programs were coordinated, and both the U.S. and the E.U. increased productive capacity and income, then a basis for trade and self-sustaining growth could emerge, making fiscal stimulus a short-term “shot in the arm” (as it is intended to be) instead of a permanent program (which is not sustainable for governments and often leads to uncompetitive industries).

Monetary policy must also be coordinated. Quantitative Easing by the U.S. Federal Reserve and the Bank of Japan have injected cheap money into the global economy. Seeking higher returns, this cheap money is often channeled towards emerging markets (such as the “BRICS”). One fear is that once QE policies wind down, emerging markets will experience “capital flight” as higher returns become available in more stable markets. In order to temper this inevitable effect of monetary tightening, both monetary policy coordination and “forward guidance” are needed from major central banks. Bernanke recently reasserted that the Fed will continue bond-buying until U.S. unemployment drops to 6.5% or inflation rises to 2.5%. However, this forward guidance is slightly muddled by ideological differences within the Fed, and amplified by Bernanke’s presumed exit as chairman of the Fed early in 2014. Coordinated monetary policy can provide the clarity needed to assuage markets. In a surprise move a few weeks ago, ECB head Mario Draghi “promised rates will remain ‘at present or lower levels for an extended period of time.’” Indications that the ECB and BoJ are committed to providing liquidity to global markets will make the Feds (eventual and inevitable) retreat from QE less damaging to global markets.

This G20 meeting has ushered in much welcome news, “in contrast to an ill-tempered G20 meeting in February colored by talk of currency wars.”

—

About a month ago, I discussed the impacts of austerity programs on states human rights obligations. This post focused a study Spanish austerity and healthcare. The G20 is more concerned with global issues (although Spain and Greece are still a poster children for youth unemployment and the social deterioration that austerity can cause during a recession, and are therefore common examples for pro-stimulus / anti-austerity proponents).

People often consider human rights as positive or negative rights; either the government has to directly provide a good / service or prevent another party from violating human rights. Another aspect of human rights is creating an enabling environment for sustainable human development. “The right to development, which embodies the human rights principles of equality, non-discrimination, participation, transparency and accountability as well as international cooperation, can guide our responses to a series of contemporary issues and challenges. The right to development is not about charity, but enablement and empowerment. High Commissioner for Human Rights Navi Pillay has called on governments and all concerned…to move beyond political debate and focus on practical steps to implement the Declaration. ‘States have the duty to cooperate with each other in ensuring development and eliminating obstacles to development,’ according to the Declaration (full text here).”

One essential element of the right to development is the international recognized “right to work”. Article 23 of the Universal Declaration of Human Rights states, “Everyone has the right to work, to free choice of employment, to just and favourable conditions of work and to protection against unemployment.” This right is a particularly important aspect of the right to development, as work income provides a means of self-determination and the ability reduce dependence on welfare programs as people attempt to realize their personal goals and aspirations.

Sometimes people do not work because they are lazy, or suffer from physical or mental conditions which impede their ability to find or maintain work. However, when unemployment rates are above 20%, and youth unemployment is above 50%, this can hardly be attributed to laziness (unless you think the world’s lazy people are all collaborating and putting themselves through years of misery in order to remain lazy, but that argument is ~~absurd~~ hard to sell). Such high unemployment levels are due in large part to government inaction / inability to pass stimulus programs, and the negative effects of austerity programs in the face of inadequate private sector demand / personal consumption (this is not stipulation or a normative stance, but rather what textbook economics tells us).

Such high levels of unemployment represent a failure of states to uphold the universal human “right to work”, which undermines the internationally recognized “right to development”. For years now, economic policy has been dominated by politics and vested interests. It is heartening to see national labor and finance ministers finally coming together to “eliminate obstacles to development”. More concrete programs will ~~probably~~ hopefully be hammered out when heads of state come together in Moscow in September for the G20 leaders summit.

I hope this is not “too little too late”, and that the years since the Great Recession took hold have not lead to “lost generations” of young people who are doomed to a lifetime of anti-social, unproductive, and sometimes criminal behavior (as some people have argued). While there will inevitably be some lifetime dependents resulting from the Great Recession (as there always are from traumatic experiences, be they economic downturns, natural disasters or violent conflicts), I am optimistic that as a whole young adults and the unemployed in general are eager to get back to work once the global policy coherence needed to create those jobs is established. G20 meetings this past week represent a meaningful step in that direction.

July 19, 2013
by bzupnick 6 Comments

Transparency Report: The Global Partnership for Development, Global Commons, and Common But Differentiated Responsibilities.

A recurring topic here at NN is how globalization has shifted some of the most pressing political economy decisions away from national governments and into the global governance arena, where the rules are largely being drawn up as we go. Never has the world been as globalized as it is today, and we can be certain that tomorrow will only lead to further integration.

A number of problems inherently arise in issues of global governance. There are innumerable public and private interests at work, none of which want to give up their legal/structural advantage for the greater global good. Politicians must balance the short-run interests of domestic actors with the long run interests of the global community (but only one of those groups is responsible for that politicians future job prospects). This may lead to a “free rider problem”, where a country may decide it will simply reap the benefits of global governance (which tend to be non-excludable), while not contributing anything (and by further complicating an already complex and differentiated international legal/policy/taxation order, undermining global governance initiatives). Differences in national regulations can lead to capital flight to low cost countries, creating another incentive to “cheat” on global commitments.

One way to overcome free-rider problems is to create forums or groups where countries can coordinate their policies and voice grievances with one another (and shine a spotlight on “cheaters” and “free riders”). The G-20 is one such organization. The 3G Global Governance Group is a similar group comprised of 30 more countries. Critics and proponents of such groups often bicker over the merits and limitations of inclusivity versus exclusivity–I am of the mind that if the stated goal is coordination, cooperation, and some element of global policy coherence, then the more the merrier. This does not mean we need a G-193; groups can determine for themselves their level of exclusivity, as long as they can interact together through global mechanisms such as the United Nations.

The concept of “common but differentiated responsibilities” in reference to the “global common”, has until this point been used almost exclusively in the environmental and natural resource arena. I would argue that both of these terms have a much wider application. Global commons should refer to any non-excludable good / service, with positive / negative externalities, whose effective management requires global coordination (to overcome cheater and free-riders). This new definition would include, among other things: environmental regulation, trade openness, financial and tax policies, issues of regional and global security and human rights concerns (and yes these are all interrelated issues, further boosting the argument for global coordination in tackling them).

By re-framing the concept of global commons, a new global partnership for development can take root through the UN Post-2015 Development Agenda, with the concept of common but differentiated responsibilities at its core. This concept itself will make countries more willing to coordinate on global commons issues. By acknowledging that countries are accountable to different degrees for the current state of global affairs, a basis for financing global initiatives that is fair yet acknowledges common goals all countries should be working towards can emerge. By “common but differentiated” I do not mean that countries should have different policies–quite the contrary. The “common” aspect refers to creating programs with global policy coherence, the “differentiated” aspect refers to how those programs will be financed in a way that allows them to fully realize their goals (as opposed to unfulfilled commitments that have dominated global agreements in the past).

Perhaps such commitments would be a more sustainable and effective way for donor countries to channel ODA, freeing up fiscal space for national governments in developing countries to finance their own domestic development programs without the distorting effects that large aid inflows can have.

—

The G-20 is currently focusing on the issue of corporate tax evasion. (for a refresher, in a previous blog I explored the costs to society of corporate tax evasion)

“Government officials from the world’s largest and richest economies on Friday for the first time endorsed a blueprint to curb widely used tax avoidance strategies that allow some multinational corporations to pay only a pittance in income taxes.”

“In light of such practices – which are entirely legal, but take advantage of differing tax rules around the world – the Organization for Economic Cooperation and Development has proposed that all nations adopt 15 new tax principles for corporations. The plan focuses only on corporations and would, if adopted widely, shift some of the global tax burden toward large companies — the ones big and rich enough to devise complex tax-reduction strategies — and away from small businesses and individuals, which tend to spend a much bigger share of their incomes on taxes.

“Shifting profits to low-tax countries and costs to high-tax countries is less an option for small businesses and individuals, who inevitably wind up carrying more of the tax burden as a result. In the United States, for example, taxes on corporate profit contributed 40 percent of all income tax to the United States Treasury 50 years ago. Today, corporations contribute less than 20 percent, with the slack taken up by small companies and those paying individual income tax.”

“In contrast, the owners of a small coffee shop would probably not able to reduce its tax liability by claiming they had paid royalty fees to an overseas company owning the copyright to their cafe’s name.

The reform is intended to address such inequities, the finance ministers said Friday”

“‘It’s a matter of justice and fairness,’ Angel Gurría, the secretary general of the O.E.C.D., said at the presentation of the new plan with the finance ministers of France, Britain, Germany and Russia.”

The list, presented Friday at a meeting of finance ministers of the Group of 20 countries in Moscow, includes ideas to prevent corporations from “treaty shopping” to find countries with the lowest taxes and then find ways to book their profits there, even when much the money is made elsewhere.”

“The details, however, may prove daunting and will be subject to intense lobbying by corporations. In addition, countries have long used tax policies in efforts to lure businesses to locate operations there. The O.E.C.D. plan would not seek to end such competition entirely – any country would be free to charge lower rates than others did — but it would try to keep countries from essentially offering companies ways to avoid paying taxes anywhere, something critics say Ireland did in reaching agreements with Apple.”

“The O.E.C.D. does not expect to complete work on the proposals until the fall of 2015, and after that it would be up to governments and legislatures to implement them by passing new tax laws.”

Government are coming together to address the issue of corporate tax avoidance, which could not be addressed unilaterally. Reform will take a long time and run into intense opposition, but it has to start somewhere, and the G-20 is that somewhere. If the worlds biggest economies agree on rules, smaller countries will follow suit (powerful countries often use economic leverage to secure policy changes). In time, with nowhere left to run, large corporations will have no option but to pay their fare share–to the benefit of all.

July 18, 2013
by bzupnick 10 Comments

Economic Outlook: Accountability and Oversight in the Financial Sector

In February I wrote a blog titled “Helping the Poor and Changing Our Standards, The DoJ vs. S & P“, and promised to keep my readers up to date on this important case. For those who do not wish to reread that whole post, here are the most pertinent details:

“The Justice Department plans to file civil fraud charges against the nation’s largest credit-ratings agency, Standard & Poor’s, accusing the firm of inflating the ratings of mortgage investments and setting them up for a crash when the financial crisis struck.”

“The Justice Department has decided to sue S & P for $5 billion. S & P contends it did no wrongdoing leading up to the housing crisis. The company will point to the facts that the Fed didn’t even know the severity of the housing bubble just days before it popped, and that its ratings were similar to those of other agencies.”

“The case is said to focus on about 30 collateralized debt obligations, or C.D.O.’s, an exotic type of security made up of bundles of mortgage bonds, which in turn were composed of individual home loans. According to S.& P., the mortgage securities were created in 2007, at the height of the housing boom. S.& P. was paid fees of about $13 million for rating them.”

“Here’s the role the DoJ will argue S&P played in perpetuating the housing bubble:

“The three major ratings agencies are typically paid by the issuers of the securities they rate — in this case, the banks that had packaged the mortgage-backed securities and wanted to market them. The investors who would buy the securities were not involved in the process but depended on the rating agencies’ assessments.”

“In its complaint against S&P, the Justice Department accused S&P of defrauding Western Federal Corporate Credit Union, and other institutions that purchased certain securities based on the high ratings by S&P.

Some credit unions are required by law to rely on credit ratings issued by firms that included S&P in making its investment decisions, the complaint said.”

—

It is my pleasure to inform my readers that a judge has given this case the “green light“, a step towards holding S & P accountable for its role in the financial crisis:

“The U.S. government may proceed with its $5 billion lawsuit accusing Standard & Poor’s of misleading investors by inflating its credit ratings, after a federal judge rejected the rating agency’s effort to dismiss the civil fraud case

In a written decision late on Tuesday, the judge said the government could pursue claims that S&P manipulated ratings to boost profit, and in doing so, concealed credit risks and conflicts of interest.

This led to large losses for investors and contributed to the 2008 financial crisis, the government contended.

“The government’s complaint alleges, in detail, the ways in which none of S&P’s credit ratings represented the thing that they were supposed to represent, which was an objective assessment of creditworthiness, because business considerations infected the entire rating process,” wrote U.S. District Judge David Carter, in Santa Ana, California.”

“The lawsuit accused the largest U.S. credit rating agency of inflating ratings to win more fees from the issuers and bankers that pay for them.

It also said S&P failed to downgrade ratings for collateralized debt obligations despite knowing they were backed by deteriorating residential mortgage-backed securities.

According to the complaint, S&P rated more than $2.8 trillion of RMBS and nearly $1.2 trillion of CDOs from September 2004 to October 2007.”

“S&P argued that, since the issuer banks had access to the same information and models that S&P analysts did, they could not have been fooled by faulty credit ratings,” Carter wrote.

“This begs the question: If no investor believed in S&P’s objectivity, and every bank had access to the same information and models as S&P, is S&P asserting that, as a matter of law, the company’s credit ratings service added absolutely zero material value as a predictor of creditworthiness?”

—

This is indeed welcome news, as I am sure once the case is underway more information will be brought to light. While I do not take a normative stance on credit agencies in general, the effects of large agencies (such as S & P) ratings on financial valuation cannot be overstated.

To the extent that the lawsuit will explore what role S & P played in perpetuating the financial crisis, and then hold S & P accountable for that role, the judges decision is one that benefits society as a whole by overcoming the power-asymmetry / collective action problem(s) individuals face in holding large institutions to account. Since that is essentially what Normative Narratives is all about, I am happy that the judge will let this case go forward. Of course the wheels of justice move very slowly, so it could still be months / years until a final ruling is made/ appeals finish and any money is paid back, but this decision is a step in the right direction. Any money the U.S. government gets from this case should go towards helping people with refinance underwater mortgages; evidence suggests that low-income families were specifically targeted by lenders in the years leading up to the housing market collapse.

—

Part of learning from past mistakes is holding the actors who perpetuated / profited from them accountable. Another part of learning from past mistakes is putting safeguards in place to prevent them from occurring again. The former has been addressed on an ad-hoc basis (many would argue not enough has been been done, but lets not allow the unattainable pursuit of perfection get in the way of achievable progress). The later was partially addressed this week with the confirmation of Richard Cordray as the head of the Consumer Financial Protection Bureau:

“The Consumer Financial Protection Bureau was conceived by a Harvard professor, embraced by the Obama administration and pushed into law by Congressional Democrats determined to expand the federal government’s authority to protect borrowers from abusive lending practices”

” [Senator Elizabeth] Warren proposed the creation of a federal agency to protect consumers of financial products in a 2007 article, memorably arguing that the government put more effort into ensuring the safety of toaster ovens than the safety of mortgage loans. The idea resonated with Mr. Obama and his senior advisers, and it became a centerpiece of the administration’s proposal to overhaul financial regulation.”

“‘It is a truly historic day,’ Warren told reporters before the vote. ‘There’s no doubt that the consumer agency will survive beyond the crib. There is now no doubt that the American people will have a strong watchdog in Washington.’”

“…the agency has begun to assert authority over non-bank financial companies, including mortgage and payday lenders, but its actions have been shadowed by uncertainty about the legality of Mr. Cordray’s appointment.”

“‘Today’s action brings added certainty to the industries we oversee and reinforces our responsibility to stand on the side of consumers and see that they are treated fairly in the financial marketplace,’ Mr. Cordray said in a statement.”

It remains to be seen how effective an institution the Consumer Financial Protection Bureau will be. But given the optimism of high ranking officials and the efforts that went into preventing Mr. Cordray’s appointment, it is safe to assume this is big news in the realm of financial reform.

—

I leave you with words from a previous blog of mine on the subject of accountability, which I believe continues to ring truer and truer with each passing day.

“Despite the political and economic cynics out there, who in their great “wisdom” will tell you nothing is happening to hold powerful interests accountable for their role in the financial crisis, we have learned lessons (albeit incredibly hard learned lessons) and are taking steps to ensure we do not repeat our past mistakes.“

July 11, 2013
by bzupnick Leave a comment

They Say I’m Lazy But it Takes All My Time

Logo: 20th Anniversary of the UN Office of the High Commissioner for Human Rights

Hello loyal readers,

I meant to write this earlier; I will be unable to write any blogs with week, as my presence is needed to help the UNDP at an event commemorating the 20th anniversary of The Vienna Declaration, the adoption of The Paris Principles, and the formation of the OHCHR and the ICC.

All these events focus around national human rights institutions (NHRI). From less than 10 NHRIs 20 years ago, more than 100 internationally accredited institutions exist today in different forms. These institutions provide citizens and civil society organizations with a means of voicing grievances, and are essential in holding governments accountable for their human rights obligations.

There are many who believe (myself included) that these institutions can go a long way in making up for some issues that prevented the MDGs from being an even more effective poverty eradication / sustainable human development program. NHRIs were virtually non-existent when the MDGs were drafted, today they are recognized as a key actor in implementing and evaluating progress on the Post-2015 Development Goals (which are being developed with human rights at their core).

I will try to write a review of the event if I get a chance, but no promises.

Best,

Ben Zupnick

July 6, 2013
by bzupnick 3 Comments

Conflict Watch: Edward Snowden Offered Asylum in Latin America, and “Legitimate” Democratic Leadership

Original Article:

“Bolivia offered asylum on Saturday to former U.S. spy agency contractor Edward Snowden, joining leftist allies Venezuela and Nicaragua in defiance of Washington, which is demanding his arrest for divulging details of secret U.S. surveillance programs.

Snowden, 30, is believed to be holed up in the transit area of Moscow’s Sheremetyevo international airport and has been trying to find a country that would take him since he landed from Hong Kong on June 23.

Bolivian President Evo Morales had said earlier this week that he would consider granting asylum to Snowden. But he took a harder line on Saturday, angered that some European countries banned his plane from their airspace this week on suspicion it carried Snowden.”

“”I want to tell … the Europeans and Americans that last night I was thinking that as a fair protest, I want to say that now in fact we are going to give asylum to that American who is being persecuted by his fellow Americans,” Morales said during a visit to the town of Chipaya.

“If we receive a legal request, we will grant asylum,” he said. Bolivia’s Foreign Ministry was not immediately available to comment on whether a formal asylum request had been received.

Venezuelan President Nicolas Maduro also offered refuge to Snowden late Friday. Nicaraguan President Daniel Ortega, speaking in Managua, said he would gladly give Snowden asylum in Nicaragua ‘if circumstances permit.’ He did not say what those circumstances might be.

Nicaragua, one of the poorest countries in the Americas, has benefited greatly from financial support from Venezuela, and Ortega was a staunch ally of Chavez.

“Russia has shown signs of growing impatience over Snowden’s stay in Moscow. Its deputy foreign minister said on Thursday that Snowden had not sought asylum in that country and needed to choose a place to go.

Moscow has made clear that the longer he stays, the greater the risk of the diplomatic standoff over his fate causing lasting damage to relations with Washington.

Both Russia’s Foreign Ministry and President Vladimir Putin’s spokesman declined to comment on Venezuela’s offer.

‘This is not our affair,’ spokesman Dmitry Peskov told Reuters.”

“The White House declined to comment. But one U.S. official familiar with the matter, who asked for anonymity, said: ‘It’s fair to say in general that U.S. officials have been pressuring governments where Snowden might try to go to do the right thing here.”

“Morales, Bolivia’s first indigenous leader and a former union leader for the country’s coca leaf farmers, and Maduro both condemned the U.S. spy programs that Snowden revealed and said he deserved protection.

‘Who is the guilty one? A young man … who denounces war plans, or the U.S. government which launches bombs and arms the terrorist Syrian opposition against the people and legitimate President Bashar al-Assad?’ Maduro asked, to applause and cheers from ranks of military officers at a parade.

‘Who is the terrorist? Who is the global delinquent?’

A bid by Snowden for Icelandic citizenship hit an impasse on Friday when the country’s parliament voted not to debate the issue before its summer recess.”

—

“Ex-intelligence contractor Edward Snowden has been charged with espionage and theft of government records after exposing a massive National Security Agency surveillance program known as PRISM.”

The Snowden issue is a loaded one, with national security and civil liberties implications. The U.S. government has had its hands full trying to balance the democratic principles of transparency and freedom of information with the national security responsibilities that modern warfare imposes on governments.

While PRISM was the first such program revealed, I think many people probably assumed that certain steps had been taken since 9/11 to ramp up intelligence gathering as part of a broader anti-terrorism mandate. In addition, intelligence gathering programs such as PRISM do not appear to be uniquely American.

“U.S. Secretary of State Kerry, on July 1 in Brunei series of meetings held during the East Asian correspondent conference. Asked about the recent burst of the U.S. National Security Agency of the EU institutions as well as some of the leaders of allies wiretapping issue, Kerry said that such behavior for most countries and there is nothing ‘unusual.'”

“But Kerry also said that such behavior for most countries, and there is nothing ‘unusual.’ He said: ‘I would say there is international relations of any one country, when it comes to national security, will take a variety of actions and collect all kinds of information to safeguard national security, which for most countries, and there is nothing unusual.'”

Recent reports suggest that France has a similar program, as more likely than not does any government with adequate information and communication technology (ICT) and manpower / resources. So long as this information is used for legitimate purposes and not as a tool for invading privacy, I support intelligence gathering programs.

I am of the mind that if you live transparently/legitimately, and have nothing to hide, then there is no reason to be afraid of government intelligence gathering. There is certainly lots of information on me out there on the internet, none of which I am concerned about. While some of it could be potentially embarrassing, none of it is illegal, and I do not believe the U.S. governments intelligence gathering has an “embarrassment mandate”. When the U.S. government starts selling personal information to US Weekly, then I will be concerned with PRISM.

—

I am getting off track, as the Snowden case could certainly be explored over the course of many blogs. I would like to turn focus to the inexplicable statements by Venezuelan President Nicolas Maduro. It is not surprising to see a Venezuelan leader railing against the U.S. government. His predecessor Hugo Chavez was an adamant anti-American figure, and remains one of the most popular figures in the country despite the impediment of not being alive. Maduro has often made baseless claims of American-backed plots to undermine his Presidency in his short time as Venezuelan President. But this latest statement truly has me shaking my head:

“‘Who is the guilty one? A young man … who denounces war plans, or the U.S. government which launches bombs and arms the terrorist Syrian opposition against the people and legitimate President Bashar al-Assad?’ Maduro asked, to applause and cheers from ranks of military officers at a parade.

‘Who is the terrorist? Who is the global delinquent?'”

The term “legitimate President” has been tossed around a lot lately, mostly surrounding the military coup and ouster of former Egyptian President Mohamed Morsi.The term has been tossed around so much that I believe it has begun to lose its meaning, as highlighted by President Maduro’s anti-American rhetoric. This is unacceptable to us (me and my readers) here at NN, so I would like to set the record straight on what exactly constitutes a “legitimate presidency”

Where does legitimacy come from? In a democracy, a regimes legitimate claim to govern comes predominantly from the execution of free and fair elections. While this is obviously only the starting point of effective democracy, it is –as far as I can tell–an indispensable part of the democratic process.

Morsi was Egypt’s legitimate President not because he was a good leader or even particularly effective (it would appear he was not as calculating a politician as he or his supporters liked to imagine, unless his ultimate goal was martyrdom). Morsi was the legitimate leader because he and his constitution passed open and fair elections in Egypt.

The message being sent to Muslims everywhere by the coup in Egypt is simple–that democracy has no place for them. I cannot help but feel that the normative vision of a democratic and modernized Middle-East took a step backwards this past week. I can only hope that I am wrong, and the The Muslim Brotherhood is embraced as part of a pluralistic and democratic Egyptian government. While talks of a “road-map” to an inclusive democratic government are promising, actions speak louder than words. One has to question the Egyptian military’s commitment to a truly effective democracy, as it represents the strongest vested interest in Egypt that would ultimately lose power if effective democracy took hold.

Bashar-al Assad of Syria IS NOT a legitimate OR effective leader. He is illegitimate because he was never elected in a fair or free election (or any election at all for that matter), but instead succeeded his father in a hereditary autocracy that has lasted 40+ years. He is not effective for a number of reasons, chiefly because he managed to turn peaceful protests into a civil war and regional refugee crisis that has threatened regional stability in the Middle-East. While human rights violations have occurred on both sides of the Syrian Civil War, the majority of these violations have been perpetuated by Assad’s forces.

Regardless of how ineffectual Morsi’s rule was, he was more of a legitimate leader than Assad can ever hope to be at this point.

While it is true there are extremist factions amongst the Syrian opposition, the U.S and allies are taking all steps possible to ensure that military aid is channeled through the proper avenues. To claim that Assad is a “legitimate President” shows an alarming irrationality and hatred of America emanating from the Venezuelan government.

July 5, 2013
by bzupnick 1 Comment

Transparency Report: The UK, Kazakhstan, Domestic and Extra-Territorial Human Rights Obligations

Original Article:

“British Prime Minister David Cameron helped inaugurate the world’s costliest oil project in Kazakhstan on Sunday on a trip aimed at sealing business deals but quickly beset by questions over the Central Asian nation’s poor human rights record.

Kazakhstan hopes Cameron’s visit, the first by a serving British prime minister, will cement its status as a rising economic power and confer a degree of the legitimacy from the West it has long sought.”

“With a $200 billion economy, the largest in Central Asia, and deep oil and gas reserves, Kazakhstan is a tempting target. Britain is already among the top three sources of foreign direct investment, according to Kazakh officials.

Since its 1991 independence, officials say British firms have invested about $20 billion in their economy, part of a total $170 billion ploughed into Kazakhstan since then.

But more high profile trade links carry political risks.

New York-based Human Rights Watch said Cameron had a duty to use his trip to denounce human rights abuses.

‘We are very concerned about the serious and deteriorating human rights situation there in recent years, including credible allegations of torture, the imprisonment of government critics, (and) tight controls over the media and freedom of expression and association,’ it said in a letter on Friday.

Answering questions from reporters in Atyrau on Sunday, Cameron said he never put trade and business interests before rights.

‘We will raise all the issues, including human rights. That’s part of our dialogue and I’ll be signing a strategic partnership with Kazakhstan,’ he said.

‘Nothing is off the agenda, including human rights.’

“[Nursultan] Nazarbayev, a former Communist party apparatchik, has overseen market reforms and maintains wide popularity among the 17-million strong population, but has tolerated no dissent or opposition during his more than two decades in power.”

“Nazarbayev, a former steelworker who now holds the title “The Leader of the Nation”, says that he puts stability and rising living standards before hasty political changes in his steppe nation, the world’s ninth-largest by area and five times the size of France.

Comparing Kazakhstan to ‘Asian economic tigers’ like South Korea and Singapore, he has said he wants to turn it into ‘the economic snow leopard of Central Asia’

—

International human rights law places the state as the central and primary duty bearer for human rights obligations. Human rights include economic, social and cultural rights, in addition to political and civil rights. These rights are indivisible and interdependent, and must be upheld indiscriminately. Certain rights cannot be violated in the name of others—when Nazarbayev says he is putting economic and social progress ahead of political freedoms, he is failing to live up to international human rights law.

The reason behind this is that, without certain political and civil rights, developments are not sustainable. If standard of living gains are made at the benevolence of a dictator, these gains are unlikely to be made in an egalitarian way. Additionally, any gains made can easily be taken away in without any accountability or redress for society as a whole.

The state, however, is not the only actor accountable for the human rights implications of its actions. According to a recent publication, “Who Will Be Accountable”, released by the UN OHCHR and the CESR, “Under international human rights law, States are primarily accountable for respecting and protecting the rights of those within their jurisdiction. The proliferation of actors in international development—from business enterprises and multilateral economic institutions to private foundations—has made it necessary to develop a more multidimensional approach to accountability…However, the notion of shared responsibility has not led in practice to a clearer attribution of the respective and differentiated duties of each of the many actors in the development process. If all parties are responsible for achieving development goals, the risk is that no party can be held accountable for anything. (p 17-18)”

It certainly seems that nobody is willing to take responsibility for human rights violations in Kazahkstan—not the Kazakh government, not Cameron, not UK investors.

Cameron’s government has even been unresponsive to the UK and EU wide effects of austerity on human rights (the UK has been a strong supporter of austerity in the face of the Great Recession). Austerity programs have contributed to the prolonged economic slump in the UK (and the EU as a whole) that is some ways has been worse than even the Great Depression.

One would hope Cameron’s time spent as co-chair of the UN High Level Panel on the Post-2015 Development Agenda would make him more in-tune with the importance of human rights for conflict prevention, economic growth and sustainable human development. Even if it has, it is also clear that Mr. Cameron, as an elected official, has more short-term concerns to deal with.

—

I am curious to hear what my readers think. Do states and private investors really have extra-territorial human rights obligations? Is it possible for external parties to even affect a dictator’s policies? Can economic and social progress be achieved without political and civil rights? Is international human rights law too idealistic and not pragmatic enough to be realistically applicable?

There is no question that whenever large sums of money are involved, human rights implications will follow. A large investment in Kazakh oil fields will undoubtedly further entrench the rulers. But if a government is unwilling to listen to even its citizens, will it listen to other world leaders and investors? Perhaps it will—as they say, “money talks”.

Is it realistic to expect UK actors, who greatly need new avenues for economic growth and are seemingly unresponsive to proximal human rights issues, will risk a “slam dunk” investment in order to champion human rights (especially when that demand would likely be rebuffed by an insulated authoritarian regime)?

The stability and security needed for long term investments to pay off seems to exist in Kazakhstan. Is this the extent to which international actors care about human rights issues, or does a greater moral and long-term sustainable human development imperative exist?

July 4, 2013
by bzupnick Leave a comment

I’m Proud to be an American, Where At Least I Know I’m Free

One thing I have learned in life, in my studies, and in my time as a blogger is that is in incredibly difficult to manage a large, diverse country in today’s modern, globalized world. In America, we are at least free to have open discourse, and have a responsive and accountable Federal government (despite current partisan bickering, at least we’ve been able to avoid Civil War / a military coup, and are no longer mired in Recession). We live in a country that indiscriminately upholds human rights and freedom from want and fear, and is attempting to spread that normative vision to all corners of the world.

We are by no means perfect, but I think America is certainly doing least worst of the World Powers; we can certainly celebrate that! Those who decry the “downfall” of America simply do not know what they are talking about. Just because other countries have seen gains in the past decades does not take away anything from America’s accomplishments. In actuality, this is the desired effect of U.S. foreign policy, the Marshal Plan, the United Nations, and any other organization / program that attempts to build peace and economic growth through cooperation and interdependence.

Today, and everyday, I am proud to be an American, where at least I know I’m free to voice my opinion and realize my full potential as a person. God Bless America! Bless Americans and people everywhere who share our values!

Happy 4th of July

July 3, 2013
by bzupnick 5 Comments

Initial Reactions to the Egyptian Military Coup D’etat

Looking Back:

Make no mistake about it, actions taken today by the Egyptian military represented a coup; Morsi was elected democratically and passed his constitution democratically. A military removing a democratically elected leader is a coup, regardless of how you spin it. At no point in the last year has there been any legitimate claims of unfair election / voting processes in Egypt. The only thing Morsi’s opposition can muster a majority over is, apparently, their dislike of Morsi.

Morsi’s year as President was marked by continued refusal by the opposition to take part in the democratic process. He was by no means a perfect leader, his rule was marked with civil and human rights violations as he struggled to keep at bay a power-grab by his long suppressed supporters while also upholding the responsibilities of running a pluralistic democratic society.

In addition to sectarian divides, the economic aftermath of the Mubarak ouster plagued the Morsi regime. Popular subsidies had to be cut in order to unlock international aid after the economy collapsed. Political divisions made such measures impossible to pass, and further economic degradation only reinforced divisions amongst Egyptians, leading to a degenerative cycle of poverty, insecurity, and political division.

No one will invest money, be it the IMF or General Electric, if a country is so divided that the ruling party and the opposition cannot even sit down together a come to agreements on policies with significant and immediate human rights and economic development implications. And certainly no family is going on a vacation to a country where their livelihood could constantly be in danger. As a result, Egypt’s foreign reserves dwindled, leading to inflation and a further deterioration of the Egyptian standard of living.

—

Give Morsi 6 months or a year, an amount of time that allow the opposition to prove its legitimacy, other than stand on its head and watch fireworks and light shows. So far all the opposition has shown is extreme, borderline irrational hatred for Morsi and the inability to participate in the democratic process. Why should we believe that now democracy will work in Egypt?

I sure hope I am wrong about the precedent being set in Egypt.

—

Looking Forward:

“Flanked by political and religious leaders and top generals, General Abdel Fattah al-Sisi announced the suspension of the Islamist-tinged constitution and a roadmap for a return to democratic rule under a revised rulebook.”

“The president of the supreme constitutional court will act as interim head of state, assisted by an interim council and a tecnocratic government until new presidential and parliamentary elections are held.

Those in the meeting have agreed on a roadmap for the future that includes initial steps to achieve the building of a strong Egyptian society that is cohesive and does not exclude anyone and ends the state of tension and division, Sisi said in a solemn address broadcast live on state television.”

—

US Support

There is also the question of whether America will continue to back the Egyptian military. If the U.S government finds the Egyptian military indeed seized power via a coup, which lets be honest they did, aid would legally have to be suspended. However, lawyers and politicians will work to keep the long-standing relationship going. Egyptian stability is necessary for Middle-Eastern stability, which is currently in short-supply as is; American leaders will be pragmatic as opposed to idealistic.

—

Lots is still up in the air; I will be sure to keep my readers up to date on Egypt’s outlook as more details present themselves.