The Unholy Mess of US Middle Eastern Strategy – Valdai Discussion Club

Despite the clear warnings in Iraq and Afghanistan of the dangers of destroying an existing state, the USA overthrew the Ghaddafi regime in Libya, leading to the collapse of the state, civil war, and a flow of migrants across the Mediterranean that has driven right wing extremism in Europe. In the process, the Obama administration also engaged in blatant deceit of Moscow and Beijing, destroying whatever remained of US diplomatic credibility in those capitals. And the USA has not even been able to prevent one set of allies in the region from boycotting another ally Qatar which is home to a vital US air base!

The current preferred explanation for the latest disasters on the part of the US establishment is the personal behaviour of President Trump and indeed, in all the history of American diplomacy there may be nothing to equal Trumps latest statements on Turkey and the Kurds for illiteracy, irresponsibility and absolute stupidity. In the wider world, some of Trumps instincts appear to be good. Despite all his bluster, he shrinks from actual war, and he opened direct talks with the North Koreans and the Taliban that ought to have been initiated by Washington many years ago. Yet as these examples demonstrate, he appears incapable of the most minimal consistency or steadiness in his approaches, or indeed of grasping the basic dynamics of any given international relationship.

However, the concentration on blaming Trump is also a way for the US and Transatlantic establishments to excuse themselves for the series of disastrous and sometimes criminal decisions (and lack of decisions) by the previous three Democratic and Republican administrations. This pattern has its roots in the decay of the US political system and political establishment at home, including the power of lobbies and their money over US policy in key areas; the retreat of area studies in academia and think tanks, leading to sheer ignorance of some of the key countries with which the USA has to deal; the self-obsession, self-satisfaction and ideological megalomania that in every dispute leads so much of the US establishment and media to cast the USA as a force of absolute good, and its opponents as absolutely evil; and the failure linked to these three syndromes to identify vital an secondary interests and choose between them a failure that has led the USA to the cvrazy position of confronting China, Russia, North Korea, Iran, Turkey and ISIS all at the same time while alienating the countries of the European Union.

However, it must also be acknowledged that the structures of the Middle East itself have also been responsible for many disasters; and that the appalling bitterness, complexity and interconnectedness of the regions problems would have challenged even the wisest and most far-sighted of would-be hegemons. It is not only that almost every state in the region is threatened from within by some combination of failure of socio-economic development, lack of political legitimacy, sectarian strife and rebellious minorities. The way in which these divides cut across the region means that almost every state has the capacity to pose an existential threat to other states, or at least is perceived to have this ability. The resulting set of fears and hatreds could be described as paranoid, except that in many cases they are in fact well-based.

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The Unholy Mess of US Middle Eastern Strategy - Valdai Discussion Club

Kevin Taylor, youre a reporter, not an opinionist; youre guided by the rule of impartiality! – Modern Ghana

I have observed, read, heard, and watched a multitude of ebullient social media commentators apparently immersed in a gamut of emotions over the squeamishly ugly and somewhat preposterous statements by a certain importunate social media critic of the Akufo-Addos administration, who goes by the name, Kevin Taylor.

The said clamorous social media critics numerous wild and unsubstantiated claims of malfeasance and wilful neglect of responsibilities by the officials of the incumbent NPP government, so to speak, smack of sensationalism more than anything else.

In fact, at worst, it is intellectually incoherent and ridiculously incongruous for a supposedly trained-mind to brush aside the existing data on Ghanas economy and keep asserting somewhat spuriously that the Akufo-Addos government is worsening the plight of Ghanaians.

If the ubiquitous social media commentator, Kevin Taylor, cares to know, Ghanas economy is in a favourable position today than yesteryears.

In fact, the unconventional and unpalatable pronouncements by the vociferous and patently aggrieved serial social media critic of the Akufo-Addos administration, Kevin Taylor, who has gained an illimitable notoriety as a Lucifer in the flesh of the NPP government appointees, cannot be allowed to pass without commenting.

Whatever the case, I cannot for the life of me, comprehend how and why anyone calling him/her self a reflective thinker can proclaim somewhat plangently that Ghanas economy under former President Mahama (3.4% growth and 15.4% inflation) was better than under President Akufo-Addo (8.6% growth and 7.8% inflation).

It therefore came as no surprise to some of us at all when the Economist Intelligence Unit (EIU), concluded in its country report released on 13 May 2019 that Ex-President John Dramani Mahama will find it extremely difficult to convince discerning Ghanaians into accepting that he is the credible manager of Ghanas economy given the countrys fairly strong economic growth under President Akufo-Addo.

In a related development, the International Monetary Fund (IMF) recent review of Ghanas economy reinforced the Economist Intelligence Unit earlier report of Ghanas propitious economic growth under the Akufo-Addos administration.

Well, Kevin Taylor, believe it or not, Ghanas economy had received thumbs-up from the likes of seasoned journalist, Malik Kweku Baako, the Director of the International Monetary Fund (IMF), Ms Christine Lagarde, and the United Nations Special Rapporteur on extreme poverty and human rights, Philip Alston, who had earlier commended the Akufo-Addos government on its excellent economic performance in the two and half years in office.

In 2017, the Bloomberg News, for example, predicted Ghana to become Africas fastest-growing economy in 2018 and Ghana was proclaimed Star of Africa in 2018 Lenders Economic Forecasts.

And, in reporting on the same fiscal policy achievements, Le Monde pointed out that Ghanas economic success is not just as the result of an oil-driven boom, but is also due to prudent economic management, an entrepreneurial population, the role of traditional leaders, and good governance.

Kevin Taylor, the latest on the list of observers on Ghanas auspicious economy is the Nigerian scholar, who recently gave a presentation at the NDCs most recent forum, in which he emphasised Ghanas thriving economic growth under the NPP government.

Kevin Taylor, the Director of the International Monetary Fund (IMF), Ms Christine Lagardes has observed that the Ghanaian economy is in a better place than it was in the previous years under the John Dramani Mahamas administration.

Ms Lagarde opined that the Akufo-Addos government had made important gains towards macroeconomic stability, including inflation, which had declined to a single digit and now within the Bank of Ghanas (BoGs) tolerance band; buoyant growth, averaging about five per cent between 2015 and 2018, and, over six per cent in 2017-18) and a primary surplus in 2017 for the first time in 15 years (IMF 2018).

Besides, Kevin Taylor, the Special Rapporteur on extreme poverty and human rights, Philip Alston, observes: Ghana met the targets for halving extreme poverty and halving the proportion of people without access to safe drinking water, and it achieved the goals relating to universal primary education and gender parity in primary school.

Kevin Taylor, the seasoned journalist, Kweku Baako Jnr hit the nail on the head when he pointed out on Joy FMs political show (News File) on Saturday 6/04/2019 that the NPP administration led by President Akufo-Addo has performed exceedingly better than the erstwhile NDC government led by former President Mahama.

Juxtaposing the state of the economy in first two years of the two administrations, Kweku Baako Jnr aptly concluded that the economy is in a better shape under the Akufo-Addos administration than it was under Mahamas administration.

Baako Jnr, therefore, asserted poignantly: Theres no doubt that the Akufo-Addo administration has done far better than the Mahama administration; its as simple as that, the figures and the records support it (myjoyonline.com, 6/04/2019).

This article thus intends to remind you, Kevin Taylor, and the opposition NDC communicators (both home and abroad) of the revoltingly ugly governance provided by the erstwhile Mahama administration.

Kevin Taylor, some of us, as a matter of principle, cannot end our arousing disgust anyhow and anytime soon over the erstwhile NDC governments irreversible incompetence and the corrupt practices which destabilised Ghanas macroeconomic indicators.

Whilst we do not want to buy the widely held assertion that politics is a dirty game, one would not be far from right to suggest that the political terrain is full of inveterate propagandists and manipulating geezers.

Of course, roguish politicians are not limited to Africa, it is a global phenomenon, as a matter of fact.

However, in our humble opinion, it is our part of the world (Africa), where political insobrieties and vague rhetoric are so prevalent.

Perhaps, this is so because we have greater number of unlettered folks, many of whom cannot choose between tricksters and morally upstanding politicians.

Of course, the opposition is obliged to put the incumbent government on its toes. But does the opposition NDC have to grumble and criticise for criticising sake?

In fact, one cannot help but to giggle over the minority NDCs renewed zeal to expose and prevent perceived incompetence and corruption in the NPP administration.

Bizarrely, the minority NDC faithful are gleefully hopping around the globe (from United States to Luxembourg), with a view to detecting a perceived corruption by the embryonic NPP government. How strange?

Kevin Taylor, let us be honest, if the NDC operatives were that good at detecting and preventing sleazes and corruption, how on earth did they go to sleep over the scandalous corruption cases involving the infamous Bus Branding, Brazil World Cup, the Ford Expedition vehicle, GYEEDA, AZONTABA, SADA, SUBAH, the purported $300million debt incurred on the faded STS housing deal, the dubious Embraer 190 Aircrafts and hanger for the Ghana Armed Forces and over a US$100 million oil revenue loss between 2011 and 2013 as reported by the Public Interest& Accountability Committee?

Perhaps, the NDC apologists are trying their level best to convince their aggrieved supporters of their consuming desire to recapture power in 2020.

In fact, Kweku Baako Jnr was absolutely right when he once stressed that the minority NDC operatives were seeking to internationalise their incompetence.

Kevin Taylor, isnt it therefore ironic that the opposition NDC operatives have soon found their voices and squalling and scolding at the roof top about alleged sleazes and corruption?

To some of us, Kevin Taylor, it is an illustrative case of let us give a dog a bad name and hang it. Obviously you and your ilk are trying your level best to bring to the fore the non-existent sleazes and corruption in the Akufo-Addos administration. How pathetic?

It beggars belief that despite the unbridled corruption, the arrogance of power and the irrevocable incompetence by the erstwhile NDC administration which resulted in massive economic collapse, the NDC apologists, both home and abroad, would still have the moral authority to accuse others.

Whatever the case, that is the beauty of democracy. The likes of Kevin Taylor are within their democratic right to whine and speak their piece and criticise the NPP administration as they see fit.

But all said and done, the obdurate critics of the Akufo-Addos administration such as Kevin Taylor ought to exercise a great deal of circumspection and consider criticising constructively.

Kevin Taylor, some of us have always held an unfailing conviction that governance is a serious business and as such it requires forward thinking, serious and committed group of people to bring about the needed progress.

However, it has not always been the case in Ghanas democratic dispensation. The multi-party democracy has given birth to both purposeful and coarse political parties.

And, as a consequence, we have for a long time been relying on lousy economic managers who cannot see their backsides from their elbows and have only succeeded in sinking the economy deeper and deeper into the mire through corrupt practices.

Kevin Taylor, in fact, some of us, as a matter of principle, share in the sentiments of the reflective sceptics who argue vehemently that despite spending 27 years in government, the successive NDC governments have failed woefully to improve upon the socio-economic standards of living of Ghanaians.

The contending schools of thought have been arguing consistently that the successive NDC governments only managed to destabilise Ghanas macroeconomic indicators through dreadful errors in decision-making.

Despite the unobjectionable facts and figures of favourable economic growth under Akufo-Addos administration, the NDC operatives are all over the place nagging, grumbling and censuring the NPP government for perceived slow pace in development in less than three years in office.

Kevin Taylor, the fact however remains that if the officials of the erstwhile NDC government had not squandered the funds meant for various developmental projects, the NPP government would have enough funds at its disposal to undertake a lot of developmental projects.

On 7th December 2016, discerning Ghanaians found in NPP, a redeemer, in whom they reposed their absolute trust to set them free from the NDC governments unpardonable economic enslavement.

Kevin Taylor, so who says that the critics are not absolutely right for suggesting that if discerning Ghanaians had not graciously intervened by showing the dreadful economic managers (NDC) the exit through universal adult suffrage, the terrible errors in decision-making and the rampant corruption would have obliterated Ghana off the world map completely?

Kevin Taylor, given the circumstances, we can confidently deduce that discerning Ghanaians made the right decision on 7th December 2016 by electing the septuagenarian Nana Akufo-Addo and retiring the middle-aged John Dramani Mahama.

Mind you, Kevin Taylor, a large portion of Ghanas scarce resources, regrettably, went down the drain due to the mismanagement and the rampant corruption perpetrated by the officials of the erstwhile Mahama administration.

There is admissible evidence of gargantuan bribery and corruption cases, including monies which were given to parasitic creatures who did not render any services towards the national development. Woyome and Akua Donkor come to mind.

And despite Mahamas government coarse administration, the loyalists NDC supporters would want discerning Ghanaians to believe that the erstwhile NDC government provided exceptional governance.

Truly, Kevin Taylor, vague understanding of patriotism exists in the minds of many Ghanaians, who prefer needless praise singing to defending the national interests.

Kevin Taylor, the good people of Ghana, unfortunately, witnessed so much scheming guiles, corruption, incompetence, nepotism, cronyism and frequent abuse of power in the erstwhile NDC government, and hence the vast majority of Ghanaians have permanently lost trust in the NDC.

Kevin Taylor, based on the prudent governance and the current favourable economic outlook, we can confidently state that Ghana is heading towards the right direction under the able leadership of President Akufo-Addo.

We must, therefore, take solace in the fact that the Akufo-Addos government is tackling the erstwhile Mahamas government economic mess head-on.

K. Badu, UK.

[emailprotected]

Disclaimer:"The views/contents expressed in this article are the sole responsibility of the author(s) and do not neccessarily reflect those of Modern Ghana. Modern Ghana will not be responsible or liable for any inaccurate or incorrect statements contained in this article."

Reproduction is authorised provided the author's permission is granted.

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Kevin Taylor, youre a reporter, not an opinionist; youre guided by the rule of impartiality! - Modern Ghana

Presidential elections in Tunisia: who are the globalists betting on? – United World International

On October 13, presidential elections will take place in Tunisia. The second round of the elections will feature famous liberal media tycoon Nabil Karoui and a conservative candidate Kas Saed, who has been nicknamed Robocop.

The winning candidate will be appointed for a five-year term and will exercise control over defense, foreign policy and national security.

Given Tunisias role as the center and cradle of the Arab Spring, the effects of these elections will have wide geopolitical implications.

Flickr

This election cycle will be a key event in the long and painful post-Arab Spring landscape. The country has established a mixed parliamentary-presidential system where the president is tasked with handling foreign affairs and defense issues.

The first round of election was held on 15 September 2019, but only around 35% of the population came out to vote and no candidate was able to win an absolute majority.Many candidates, including Munir Baatur (a homosexual), the singer Nermine Sfar and incumbent Prime Minister Yousaf Shaheed, were defeated in the first round.

After the sudden death of President of Beji Caid Essebsi, the authorities announced that the second round would take place on October 13, earlier than originally planned.

The second round will be a fight between the top two candidates, Kas Saed (an independent candidate) and Nabil Karoui (from the Heart of Tunisia party).

Saed is a professor, a lawyer and represents conservative Tunisians. He is known for his strong positions on the death penalty and gender issues (he is a strong supporter of the traditional family). He is also a strong opponent of the LGBTQ movement he claims that the spread of homosexuality is a result of interference from foreign countries.

Wikipedia

Unlike his opponent, his campaign was conducted with little to no advertising. A year ago he was unknown to anyone. His unexpected popularity despite having little to no TV presence or state support, came as a surprise to many people. His campaign has focused heavily on conducting fair elections and promising to fight corruption. He has promised electoral reforms such as legislation to staff local elections with regional representatives.

Some experts describe him as a conservative idealist, running on utopian themes of radical state decentralisation at home, and aspirational pan-Arab unity abroad. Others have called his campaign a popular reaction not just against corruption, but also against what he sees as a lack of vision that has plagued Tunisian politics.

Experts say that Saed will find himself in an unprecedented position for an Arab leader without the support of the establishment party.

Karoui is a liberal, a businessman and owns the Tunisian television company Nessma. On July 8, 2019, he was charged with money laundering, banned from leaving the country and his property seized. He was eventually arrested on August 23. While this might have ended another candidates chances, he managed to run for office from prison, and in October the Tunisian court ordered his release from prison.

His supporters claim that the arrest was intended to spoil the media tycoons election campaign. As a matter of fact, his imprisonment actually improved his image in the eyes of a number of voters who now see him as a political victim. In addition, his television channel Nessma is a powerful resource for his election campaign.

Nessma established an important charity dedicated to fighting poverty, something which has become a central theme of his campaign. The ordinary people among his electorate are attracted by his populist speeches (against poverty, corruption, etc.), and the business community supports him because of his capitalist liberal ideology.

Facebook

Curiously, mainstream media the day before accused Karooi of links to Trump and Russia, citing an insider contact, but Karooi denies any involvement. However, the incident does show that media efforts to accused Trump and Russia of interfering in other peoples elections extends beyond US borders.

Tunisia: Nabil Karoui to sue people behind smear campaign in connection to lobbying firm

The BBC, predictably, had interesting things to say on the issue. Their article contains the opinion of head of opinion poll firm Elka Ikbal Elloumi:

The message is clear, they [the people] are looking for new politicians Saed is a social phenomenon, he represents a need from citizens for equity and justice. Nabil Karoui represents the hope of poor people, vulnerable people, not only financially poor, but people who are looking for financial opportunity.

In parallel with the presidential election process, the parliamentary vote had recently taken place.

The Ennahdha party (Rached Ghannouchis moderate Islamist party) came in first place with 17.5% of the vote (40 of the 217 seats parliamentary seats). It was followed closely by the new Qalb Tounes, a party founded by media mogul Nabil Karoui who won 15.6% of the vote, or 33 seats.

This will make the upcoming presidential elections particularly interesting and uncertain. The electorate is particularly split.

The current coalition government has been severely criticized for failing to cope with the countrys economic difficulties, including unemployment rates exceeding 15%.

Many experts believe that the promotion of the two newcomers to the second round of voting in the countrys presidential elections is evidence of the Tunisian peoples disappointment in the establishment and desire for real change.

After the collapse of the presidents government, Zine El Abidine bin Ali Tunisi had already had a rather bumpy history, with the socio-economic situation in some sectors severely deteriorating. This presents a serious challenge for whoever is elected the new leader of the country.

The globalists are not particularly interested in promoting the capitalist candidate (there will be no a priori desire for social justice from most of Tunisias tycoons) nor the candidate who espouses traditional values. Rather, It is in their interest not to allow the formation of a singular effective power of any kind in order to maintain destabilization. The globalists are mostly afraid of the rise of a strong personality (such as the leaders of China, Turkey and Russia).

To illustrate this, the same BBC article concludes the article with an opinion of one Tunisian voter who says: I think weve reached a point where no individual, nor party has absolute power. This is essential.

Link:

Presidential elections in Tunisia: who are the globalists betting on? - United World International

Why is Poland’s Law and Justice party still so popular? – EUROPP – European Politics and Policy

Polands ruling Law and Justice party has a lead in the polls ahead of the countrys parliamentary election on 13 October. Aleks Szczerbiak writes that despite intense domestic and international criticism, the party remains popular because it is trusted on the socio-economic issues that voters care most about.

Polands parliamentary election on 13 October is likely to be one of the most important and consequential since the collapse of communism in 1989. During the last four years, the current government, led by the right-wing Law and Justice (PiS) party, has come under heavy fire from its political opponents for allegedly undermining democracy and the rule of law in its approach to the judiciary, media, public appointments and civic rights.

It has also been in an ongoing conflict with the EU political establishment and subject to intense criticism from much of the western opinion-forming media. However, Law and Justice remains very popular and enjoys a clear lead in the opinion polls. The Ewybory website that aggregates voting intention surveys shows the party averaging 45% compared with 26% for the Civic Coalition (KO) electoral alliance led by the liberal-centrist Civic Platform (PO), the countrys governing party between 2007-15 and currently the main opposition grouping.

The Polish election is more open that it initially appears. Even if, as seems almost certain, Law and Justice wins the largest share of the vote, it is far-from-clear whether or not it will retain its overall parliamentary majority and continue to govern without needing the support of other parties. This depends on the precise share and final distribution of votes between the governing party and opposition groupings, particularly how many of the latter enter parliament and the votes cast for parties that fail to cross the representation threshold. A relatively small number of votes could determine the outcome either way. Nonetheless, as things currently stand there is a strong possibility that Law and Justice will secure re-election for a second term.

So why is Law and Justice still so popular? Firstly, and perhaps most importantly, the party is trusted by voters on the socio-economic issues that they care most about because it has delivered on many of the high-profile social spending pledges which were the key to Law and Justices 2015 election success. The most significant of these was its extremely popular flagship 500 plus child subsidy programme which was extended this year to cover all families with any number of children.

The 500 plus programme has had an important symbolic effect, providing a significant and clearly identifiable financial boost to many low-income households who felt frustrated that they had not shared sufficiently in Polands post-communist economic transformation. Many Poles feel that, while politicians often promised to help the less well-off, Law and Justice is the first governing party to actually deliver on these pledges on such a scale. At the same time, although the governments opponents argue that the huge expansion of social spending and tax cuts places a massive strain on public finances, economic growth is strong, unemployment at its lowest for years, and increased tax revenues have actually led to a reduction in the state budget deficit.

At a September election rally launching the partys plans to build a prosperous state (pastwo dobrobytu) grounded in social solidarity, Law and Justice augmented its array of social welfare commitments by announcing plans to almost double the minimum wage by the end of 2023, and introduce regular annual cash bonus payments for pensioners and retirees. Together with earlier social welfare spending pledges, these programmes are aimed at raising the electoral stakes for key groups of Law and Justice core voters, thereby encouraging them to vote in October out of fear that the opposition may water them down or abandon them if it were to win office.

Defending national identity and traditional values

Secondly, Law and Justice has put itself at the head of a moral crusade projecting the party as the defender of the traditional family, Polish national identity, and Christian values and culture. These, it argues, stabilise the social order and promote the common good but are threatened by a great offensive of evil (wielka ofensywa za). Initially, this could be seen in the partys strong opposition to the EUs extremely unpopular compulsory migrant relocation scheme in the run-up to the 2015 election, when Law and Justice argued that Muslim migrants from the Middle East and North Africa would be difficult to assimilate and threatened Polands national security. More recently, the party has opposed what it terms LGBT ideology: an allegedly aggressive movement and policy agenda based on foreign ideas promoted by left-wing enemies of western civilisation.

These are certainly polarising issues that strike an emotional chord with many Poles because they involve a clash of basic moral-cultural values and map on to some of the deepest divisions in Polish society. A defence of traditional moral codes and pushing back against western cultural liberalism has always been a key element of Law and Justices appeal to more socially conservative voters. Consequently, raising the issues salience (according to the opposition, cynically as a pretext to create an atmosphere of moral panic) certainly helps to mobilise the partys core supporters in smaller towns and rural areas where such values still hold considerable sway.

But Law and Justice has framed its arguments so that they do not simply mobilise its core electorate but also win broader public support for the party. The vast majority of Poles supported the Law and Justice governments strong opposition to the EUs mandatory relocation scheme, keen to avoid the kind of cultural and security problems that they felt western European countries have experienced through admitting large numbers of Muslim migrants. The fact that, unlike in many western European cities, there have been no Islamist terrorist attacks in Poland increased Poles sense that they lived in a relatively safe country and that this was threatened by alleged EU-imposed multi-culturalism.

Similarly, while Poles appear to be increasingly tolerant of LGBT lifestyles, popular acceptance starts to decline when the agenda moves beyond how individuals choose to live their private lives into areas which they feel belong to the realm of family life, such as proposals that appear to diminish the role of parents as the primary educators of their children in matters of sexual relations and morality. While Poles are fairly evenly divided on the question of legal recognition of same-sex civil partnerships, a substantial majority oppose same-sex marriage (set out in the Polish Constitution as the union of a man and woman) and are overwhelmingly against granting adoption rights to same-sex couples. Many, including those who are not especially religious, are also extremely hostile to the profanation of Catholic symbols by LGBT activists, as in Poland many of these are also regarded as broader national symbols.

Re-distributing prestige

Thirdly, the negative publicity surrounding various allegations of government scandals, and the abuse of public office by Law and Justice politicians for partisan or private ends, does not appear to have damaged the ruling party to any great extent. Law and Justice has generally been quick off-the-mark in acting decisively to neutralise these scandals, if necessary by dismissing the implicated officials. For example, in July Marek Kuchciski was forced to resign as Law and Justice parliamentary speaker following allegations that he had used an official aeroplane for private flights. The partys supporters appear to regard such allegations as either false, the occasional lapses of a generally honest party, or endemic to Polish politics with Law and Justice at least attempting to ensure that it was not only the governing elites that shared in the fruits of economic transformation.

Similarly, Law and Justice has been tactically adroit in knowing when to defuse, and not expend too much political capital on, contentious issues, and retreat when the party does not consider these to be priorities or core elements of its governing programme. A good example of this was the abortion issue when, although they personally supported tightening Polands already-restrictive law, in autumn 2016, facing an unexpectedly large groundswell of public opposition, Law and Justice parliamentarians voted down legislation sponsored by Catholic civic organisations representing the partys core religious right electorate to make the practice illegal in all cases except when the mothers life was at risk.

Fourthly, Poles have been prepared to cut Law and Justice a lot of slack. For sure, the party has robustly denied the oppositions allegations that it has undermined democracy and the rule of law. Many Poles accept the governments argument that its actions were necessary to restore pluralism and balance to institutions which, they said, had been expropriated by extremely well-entrenched, and often deeply corrupt, post-communist elites. Moreover, even if they have misgivings about some of the governments specific measures, particularly its approach to constitutional issues and civic rights, many others still feel that, for all its faults, Law and Justice was at least attempting to tackle some of the apparently intractable problems with, and shortcomings of, the Polish state which have been ignored by previous administrations.

An important element of this that was linked to but went beyond the simple question of financial transfers was what some commentators termed the re-distribution of prestige: whereby many ordinary Poles who previously felt themselves to be second-class citizens started to regain a sense of dignity and that, as they saw it, their government finally cared about the less well-off and was trying to restore an elementary sense of justice and moral order.

A weak and unconvincing opposition

Finally, Law and Justice has benefited from the fact that the liberal-centrist opposition has failed to develop a convincing and attractive programmatic alternative on key socio-economic issues. The opposition also lacks a convincing figurehead around whom it can rally. Civic Platform leader Grzegorz Schetyna is as an extremely effective behind-the-scenes political operator but lacks dynamism and charisma and is currently Polands least trusted politician. Recognising his lack of wider appeal, Mr Schetyna has taken a back-seat in the election campaign with Civic Platform promoting the more emollient but low-key former parliamentary speaker Magorzata Kidawa-Boska as its prime ministerial candidate.

Opposition strategists recognise that, rather than trying to outbid Law and Justices huge expansion of individual social transfers and welfare benefit programmes (although it has promised to continue with them), they should focus instead on improving the quality of public services, especially health and education. However, while many Poles feel that these services have been neglected, they are also dubious as to whether the opposition which is too associated with the previous, discredited Civic Platform administration offers a credible alternative and would actually deliver any improvements. Law and Justices election victory reflected widespread disillusionment with the countrys ruling elite and a strong prevailing mood that it was time for change, and the ruling party simply has much greater credibility on these social policy issues having implemented most of the spending promises on which it was elected.

Complacency is the greatest threat

The opposition should not be written off and retains considerable political assets including: a sizeable potential base of popular support; substantial financial resources and the backing of most of the privately-owned media; and significant influence within, and widespread support from, the countrys cultural, legal and business elites. Election campaigns can also, of course, develop their own specific dynamics, and a change in the political context or the emergence of a particular issue could still turn things around, given that government and opposition camps actually remain fairly evenly matched in terms of their combined overall levels of support. Nonetheless, as things stand, the greatest threat to Law and Justice probably comes not from the opposition, but the danger of its own leaders and supporters succumbing to complacency and over-confidence.

Please read our comments policy before commenting.

Note: This article originally appeared at Aleks Szczerbiakspersonal blog. The article gives the views of the author, not the position of EUROPP European Politics and Policy or the London School of Economics.

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About the author

Aleks SzczerbiakUniversity of SussexAleks Szczerbiak is Professor of Politics and Contemporary European Studies at the University of Sussex. He is author ofPoland Within the European Union? New Awkward Partner or New Heart of Europe?(Routledge, 2012) and Politicising the Communist Past: The Politics of Truth Revelation in Post-Communist Poland (Routledge 2018). He blogs regularly about developments on the Polish political scene athttp://polishpoliticsblog.wordpress.com/

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Why is Poland's Law and Justice party still so popular? - EUROPP - European Politics and Policy

Brexit: Systemic Risk and a Warning – Resilience

1. Introduction

It was only after the United Kingdom voted to leave the European Union that people began to seriously consider how it might be achieved. Some had assumed it would be trivial. For them, even waiting out the two-year official notice period prior to departure was an indulgence that displayed an unpatriotic lack of resolve.

Most were not so sanguine. But on all sides, there was a general unawareness of just how complex and risk-laden the departure would be. This only gradually came into view. Months after the run-down had been triggered it was discovered that over759 treatieswould have to be renegotiated. There was growing alarm that the intricate web of Just-In-Time logistics that enable industry,supermarketsand medical care could be profoundly disrupted, especially if the UK left without a deal. Each week new concerns came to the fore,for example, how do you slaughter millions of livestock and dispose of the carcases if the market for them evaporates? When the scale of the potential disruption became clearer, militarycontingency plannerswere drafted into various government departments to help direct the response.

As the first (March 29th) departure date approached, leakedCabinet Office documentsemphasised that Operation Yellowhammer, the contingency command and control structure, could be overwhelmed in the case of a no-deal exit. Sources quoted said that the planning was too little, too late, echoing thewarningsof business and union leaders about the preparedness of their companies. Summer 2019 brought another leaked Cabinetwarning, again about the countrys lack of preparations for a no deal departure on the revised date of October 31st, while the civil servant in charge of the UKs no-deal contingency planning announced hisdeparturefrom office, all adding to the impression that preparedness planning was being overwhelmed by an impossible task.

In September the government was forced to release the Operation Yellowhammer Reasonable Worst Case Planning Assumptionsof a no-deal which included extended disruptions to fuel, food, and medicine supplies, higher food prices affecting the most vulnerable, jammed ports and a prolonged and significant decline in ferry traffic, and the potential for civil unrest. When a very similar version was leaked some weeks before, The Freight Transport Association said:This is the first time the industry is learning of any threat to fuel supplies a particularly worrying situation, as this would affect the movement of goods across the country, not just to and from Europe, and could put jobs at risk throughout the sector which keeps Britain trading. As this document cannot account for all the potential compounding and interactions of the diverse impacts enumerated, it should not be considered a worst-case assumption.

Since the vote, the level of social and political fracturing has intensified. Norms of public and political behaviour are repeatedly tested, and the atmosphere has become febrile and polarized. For a growing number of people Brexit has morphed from political choice intosacred value, with the corresponding rise in the risks supporters are willing to impose upon their fellow citizens to see it to its brisk conclusion, and even that may never be enough. In Northern Ireland, deeply polarised but at peace, wounds are re-opening as a potential hard border with the Republic of Ireland test identities and economic dependencies. Parliament and the government remain trapped in a state of hyper-animated stasis. While outside, pounding on its gates, Nigel Farages one-man political party rouses his followers with talk of betrayal to the accompanying sound of anair raid siren.

As the UK is deeply enmeshed within global systems, it is also a potential source of external contagion. Ireland, the Netherlands, and France are among countries working on contingency plans, but in an interconnected and interdependent world, theres scope for all manner of surprise. This is especially pertinent at a time when the global economy is increasingly fragile, trust within and between countries has declined, a global banking and Eurozone crisis has only been parked, and the range and intensity of global threats are growing.

The United Kingdoms civil service is professional and competent, while its contingency capacities are amongst the best in the world. Yet managing a departure to mitigate bad outcomes, even with a dedicated16,000 civil servants, a lead-time, and a specified departure date, has revealed a level of response complexity that any modern society would struggle to match. Brexit, especially its no-deal variant, presents a broad societal shock on a range of temporal scales directly affecting social relations, governance, international relations, supply-chains, critical infrastructures, economic production and demand, financial stability, public health and security. It is a potential systemic risk, affecting the operating systems that sustain and integrate society and collective welfare.

But Brexit is only a fragmentary manifestation of much wider and deeper processes that are rapidly transforming the risk environment to which all societies are exposed. This essay uses Brexit as a leitmotif to explore this transformation. Through it we can observe the casual complacency we share about how our societies function and service our most basic needs, while it becomes ever-more vulnerable as the complexity, efficiency and interdependencies that underpin it grows. And secondly, it demonstrates how multiple stressors, environmental and socio-economic can interact to generate new stresses and tipping points.

It is the interactions between intensifying stresses and shocks, and their convergence through more vulnerable societal systems that is the defining process underlying the stability and fate of societies. Seen from this perspective, it is likely that we are severely underestimating the potential for large-scale systemic risks. Therefore, whatever the outcome, the preparations for a no deal Brexit should be regarded as a warning and a test-run for the far greater stresses and shocks to come no matter where you live.

With the certainty of near-term non-linear changes, the critical assumption of the relationship between past and future risk must now be revisited-Global Assessment Report, United Nations Office of Disaster Risk Reduction. 2019

Just as we rarely notice the ground until we trip, we take for granted the web of conditions that make the everyday run smoothly. Think of the supply-chains that feed our supermarkets and businesses; the electric grid that enables the clean water, communications, transport and manufacturing that our societies rely upon; the financial systems that sustain the flows of goods and services; and the societal cooperation that protects our security and capacity to respond to problems.

But we are the freaks of human history, see figure. The conditions through which we sustain ourselves is an outlier, the emergent outcome of exponential population, economic, and complexity growth in a re-enforcing cycle with the accelerating energy and material flows that are essential to sustain each level of complexity and to adapt to dynamic societal and ecological environments.

Figure:World population and per capita Gross World Product. What we take for granted is an aberration in human history- a 250-year cycle of accelerating population, economic, and complexity growth. (Data: Maddison).

In most developed parts of the world, food shortages, seasonality, and variability of supply, our bedfellows through the history of life have disappeared. In the UK only aboutone percentof the population are now involved in agriculture, yet we take an abundance and variety of food for granted. And even those few workers can in most cases be considered not so much producers of food, but a staging post where energy, fertilizers, seeds, feed, pesticides, pharmaceuticals and machinery are combined before food is shipped, processed and delivered. Its cheap freeing up the capacity of the economy for the diversity of other goods, services and jobs. And its efficient theres only a few of days food available in our cities, though weve had little incentive to notice.

The intricacies of the conditions that underpin society confound the imagination, but we can make a gesture towards it. Consider the BMW factory in Oxford which makes 1,000 Minis a day, each one containing over 4,000 parts, three-fifths coming through the port ofDover. These parts arrive in precise sequences and are delivered directly onto the production-line on a Just-in-Time basis. One can make a simple estimate that each of those parts comes from a factory which itself has an average of 400 inputs (assuming theyre less complex), and again, each of those in turn come from a factory with another 400 inputs then just three steps down the supply-chain there are already a potential 640 million supply-chain interactions.

But thats barely the start of it. The factories, productions systems, and employees are sustained within the fabric of a global civilization. They depend upon electrical grids, transport, water, fuel, telecommunications and financial networks and all their conditional dependencies. They rely upon the skills of workers, and the education, housing, and food that makes them productive. They require the extraction, processing, delivery and affordability of energy and other raw materials that are essential to maintaining systemic complexity and its capacity to adapt. They depend upon the relative stability of a variety of socio-economic, environmental, climatic and geological conditions across the globe. Globalized economies of scale are required to make the whole thing viable. For people to afford the cars, they too must ply their own trade, which depends upon the same global systems integration. The evolved regularities of our collective behavior trust, myth, group identities, institutions, legal systems, cultural norms and expectations that give coherence and direction to the physical flows of goods and services.

Nobody designed this vast, intricate and synchronized web of supporting conditions, theres nobody in control. We are not its architect we are expressions of its emergent living architecture. Its myriad parts, including our own feelings, perceptions and understanding of the world evolved, interacted and adapted together to create an increasingly singular, global, high-speed, efficient and interdependent human system. People and organizations may have power and control within niches, but they are dependent upon, and constrained by the totality of the relationships.

Returning to our car, if just one of those 400 suppliers to the Mini factory loses one critical input, due, for example, to distant flooding (as happened after the 2011 flooding in Thailand), a major bankruptcy ( for example, 2016 insolvency of Hanjin shipping) or large-scale societal fracturing (the social and economic collapse of Venezuela) , then the whole production process halts. Having the remaining 399 other parts at hand makes no difference. This unavailability can then travel up the supply-chain, potentially shutting our Mini factory. This vulnerability to the weakest link is an example of the potential for the non-linear amplification of shocks in societal systems small disruptions can have big impacts. Because some of the supply-chain operates on a Just-In-Time basis, even interruptions of a few hours can cause significant problems. The more complex a society, the more it depends upon constituent parts whose viability depends upon more inputs and supporting conditions, and thus the more vulnerable it is to the failure of its weakest links.

Yet, the extraordinary thing is that anything works at all, given that increasing complexity and globally dispersed time-sensitive interdependencies are the very things that can multiply the paths through which a myriad of potential disruptions can propagate? With so many semi-opaque sources of latent risk, why arent we permanently in crisis? Part of the reason is that such a complex society couldnt have evolved if parts of the system were being continually interrupted. The other is that the system has self-organized to stabilize and suppress volatility (see appendixherefor further discussion).

Thus, while we notice change, our families growing older, new technologies, shifting culture and mores, and the psychodrama of public and political life, behind it is a system-of-systems that is stable and taken for granted. When we expect to present our bankcard at a supermarket in a few days, plan a meeting next month, roll-out an infrastructure project that will take years to complete, we are assuming a mindboggling level of systemic coherence and its on-going persistence.

Our recent experience has habituated us to such assumptions. Of course, there have been disruptions, disasters, recessions and unpleasant surprises, but they are but tiny and transient scratches upon our civilizational organism. We assume returns to trend, recovery follows recession, and technology must continue adapting and complexifying. Across scales, civilizations systems have been resilient, able to bounce back from shocks or adapt in response to stress and opportunity. Severe disruptions to essentials like food, water, or energy or a hiatus in societies ability to operate are vanishingly rare in the most complex parts of the world. Where disasters have occurred, such as major flooding or hurricanes in the US, the support from the wider system and their history with such events has helped the impacted region to stabilize and recover. The global financial crisis (which led to a mere 2% drop in global GDP) clearly had major impacts in the most developed countries, but only measured relative to peoples pre-crisis expectations it wasnt a catastrophe that would be recognized as such across history, and indeed by many of todays global poor.

Within this, the European Union has been the most integrationist corner of an integrating and complexifying world. The removal of barriers, the harmonization of standards, shared institutions, relatively predictable currency movements, shared cultures, and the general stability of the countries within the union helped create the conditions for the evolution of rich, time-sensitive connectivity, and its corresponding contribution to increased economic activity.

Brexit was supposed to be relatively simple. The failure to appreciate the potential for disruption arising from Brexit reflects societys habituation to system stability. When things work, we take it for granted. We notice the froth on the surface of life, not the ocean underneath. In addition, in much of the developed world years of affluence and relatively benign political environments have dulled our sensitivity to whats at stake should the pillars supporting critical societal operations suffer severe disruptions or even fail.

We are all, not just Brexiteers, complacent.

The complexity of modern society is such that if you take out one or two little pieces of the jigsaw, the whole thing collapses Lord Arbuthnot, former chair of the United Kingdom House of Commons Defense Committee, presently advisor to the Electric Infrastructure Security Council.

The changing nature of our global civilization is transforming societies vulnerability. The global integration of local systems of dependency mean that no family, critical infrastructure, city or nation can be truly resilient, as the conditions that sustain their organization are dispersed beyond their borders and controls. More complexity and interdependence between the parts of the human system means that there are many more paths through which disruptions can interact and amplify. It also means that a failure of critical parts of societal systems can cause the collective failure of large-scale system integration, which may be irreversible. While the growing efficiency and speed of systems and processes means shocks can transmit and interact faster and more non-linearly. As it stabilized and volatility was suppressed, the bounds resilience could decline (e.g. the temporal resilience to supply-chain disruption), increasing the vulnerability if the intensity, frequency and duration of shocks and stresses were to increase significantly. Societal cooperation, from the local to global, has been enabled in part by expectations contained within the assumption of continued economic growth, if those expectations become strained, that cooperation is more likely to fragment. We can get an insight into some of the relationships between societal complexity and vulnerability by considering some examples.

One wide-ranging example of non-linear amplification occurred in the UK. In 2000, a five-day blockade of fuel distribution centres began to cascade through a range of societal systems affecting the work of hospitals, the re-supply of supermarkets and businesses, the ability of people to get to work, the filling of cash machines andso on. Disruptions and failures generated new failures, they interacted, and the impact on society began to accelerate. Had it gone on just a few more days, large parts of the economy and society would have ceased to function. The protest highlighted the vulnerability of the whole of integrated societal systems if just the right part is impacted. The impacts were alarming enough that even the Canadian government commissioned a report on its impacts. Later a report by the think-tank Chatham HousesaidOne week seems to be the maximum tolerance of the just-in-time global economy before societies basic functionality begins to shut down. Since then, societal systems have become more complex, faster, more efficient and interdependent.

The above example highlights the critical role of fuel energy, next we turn to electricity. The major geomagnetic storm like the one that hit our planet in 1859 that became known as a Carrington event made little difference to everyday life. If it happenedtoday, because of our electricity dependence, it would be devastating, destroying electric transformers and many other systems. Without power for a prolonged period, clean water stops flowing, sanitation backs up, food deliveries stop, freezers thaw, phones and internet go dead, petrol pumps cant operate, offices and factories are dark, the financial system ceases to function, goods and services do not flow, and the capacity to keep nuclear cores cool can be lost. Unprepared communities may look to their government for help but find only disorientation as governance depends upon the same systems integration, and the scale of the shock would overwhelm contingency capacities. The critically damaged part, the electric transformers, have such a low capacity supply-chain that replacing the damaged ones would take years assuming the manufacturing itself did not become impossible due to the direct and indirect impacts of the Carrington event. Even if there was resilient electricity infrastructure in some places, those societies would be still vulnerable to economic, financial, social, and supply-chain contagion originating from the directly impacted parts imperiling societal operations including the supposedly resilient grid, which would still be vulnerable due to its weakest links. Today concerns about a prolonged wide-area grid failure include a major cyber/ hybrid attack or high-altitude nuclear detonation.

The effort by major central banks and governments to save the financial system in 2008 was ultimately to avoid a breakdown in the ability to transact for trade. Had such atipping pointbeen passed, rapid contagion through global supply-chains could have undermined the ability to re-stabilize the financial system, further amplifying supply-chain contagion in a re-enforcing spiral. Had such run-away conditions occurred, the ability to sustain any critical infrastructures services would soon been called into doubt. As Damian McBride, the UK Prime Minister Gordon Browns advisor makesclear, there was always uncertainty as to whether the effort to save the financial system would be successful.

An event similar to the 1918 influenza pandemic would have a far greater impact today due to the potential for non-linear amplification through societal systems. We are much better at outbreak monitoring, vaccine development and response at a certain scale, however the potential for animal-to-human transmission, global transport networks and the relentless adaptation of viral life mean the potential for a major global pandemic is growing.

Any natural disaster or war affecting a country on the other side of the planet can spread shocks and even global systemic de-stabilization, especially if the impacted region is both big enough, and plays a central role through its position within the global system.

What can be noticed through these examples is that, because critical systems are interdependent, any shock, or combination of them, if it hits the right part and is of sufficient scale, can cause the same broad outcome- a systemic collapse in societal complexity. It would be felt as a shut-down in the flow of goods and services, or a sudden fall in a societys capacity to use energy. This may or may not be recoverable. Because diverse hazards have broadly the same outcome, if you prepare for the impact of one, you are prepared for the impact of all.

The economic models used to estimate the impact of Brexit are blind to the dynamics of large-scale societal contagion processes. The yardstick through which impacts are measured, the monetary cost, do not see the loss of distinct and particular inputs into societal processes and connections through society, nor how those disruptions can interact with each other to generate new disruptions. Nor do they measure the cost of a rupture in the social contract, what that means for wellbeing, and the implications for how the UK faces the next crisis. This is not to say that Brexit will cause deep de-stabilization, the contingency planning has likely prevented this, only that the bigger the shock the more economic models will fail to represent systemic vulnerabilities.

The structure of our dependencies is making us more vulnerable, but this is only half the story.

Risks can crystallize with disorientating speed. In a world of complex and interconnected systems [they can] lead to sudden and dramatic breakdowns. If we exhaust our capacities to absorb disruption and allow our systems to become brittle enough to break, it is difficult to overstate the damage that might result.The Global Risks Report, World Economic Forum, 2018

The causal forces behind Brexit are complex, emergent and must remain to some degree opaque. However, the visibility and the hostile and politicalized deployment of refugees arriving into Europe in the years just prior to the vote, compounded the persistent effects of the 2008 global financial crises and responses to it. Together they likely contributed to the narrow victory of the leave side, a tipping point that would delineate two very different paths that would have implications far beyond the UK. The refugees escaped a tragedy in Syria that was influenced by internal shifts (demographic changes, economic challenges forced by peaking domestic oil production, impacts made more likely by climate change), and international forces (social contagion as part of the Arab Spring , volatile global food prices influenced by climate change and oil prices, and side-effects of US quantitative easing instituted response to the financial crisis).

This sketch gives a glimpse of an emerging reality where diverse stresses and shocks transmit and interact across the globe, generating new sources of disturbance, and where stressed societies can lose resilience, becoming more vulnerable to the next crisis. The focus on facets of this predicament obscures the reality that it is their convergence that matters.

This reflects that we have entered a period where there is a growing potential for oil, food, and water constraints and disruptions, in addition to the rising impacts from climate change and the feedback from the multi-dimensional effects our species is having upon our civilizations ecological niche. Within the human system the potential for a severe financial and economic crisis grows as indebtedness continues to escalate, productivity and our ability to innovate around problems are experiencing declining marginal returns, while tensions within and between nations grows. Any one of these is critical for the maintenance and stability of global systems integration, yet we are seeing intensifying stresses on all fronts.

In broad terms, these stressors can have non-linear large-scale impacts, they can act to constrain economic growth, increase the likelihood of economic recessions and depressions, raise the social and economic cost of maintaining existing systems and societal expectations, and increase the likelihood, duration and intensity of shocks. Shocks here could include supply and demand shocks, physical damage to society and infrastructures, supply-chain contagion, financial crises and contagion, social unrest, political revolutions, state capture, refugees, and war.

Increasingly stressed systems are more likely to experience multiple shocks at the same time or in quick succession. The impacts too, become non-linear. Losing a thousand pounds means different things depending on whether its your first, or last. Even more so if your rent is late and eviction beckons, a family member is sick and needs medicine, and those who once might have supported you, be it friends or state, are themselves overwhelmed. Similar scenarios could be drawn for any scale of societal systems. Repeatedly stressed systems can lose their internal resilience, as can external support (governments, IMF, European Stability Mechanism, Red Cross etc). Non-linearities can turn into tipping points as industries or infrastructures fail, wars start, states fail, and global contagion processes are initiated.

The potential risk for amplification is enormous due to the scale of latent risk mentioned in section two. Complex, delocalized societal systems, adaptive to system stability with correspondingly low resilience, are vulnerable to the weakest link and can create the conditions for rapid and diverse contagion and compounding. In such an environment, intrinsic uncertainty grows, the future becomes more dangerous, and systemic stability can begin to unravel.

As the need to build resilience into existing systems becomes more apparent, our capacity to invest -in inventories, flood defenses, and critical infrastructure back-ups is more difficult, as incomes fall, affordable financing becomes scarce or non-existent, and the ability to produce and access constituent materials becomes uncertain. Further, in an increasingly stressed and volatile environment, the necessity of maintaining existing systems and expectations is more likely to take precedence over investments in future resilience. For example, our food systems are very vulnerable, but making them more resilient at scale would raise food prices. Yet if food prices are already high due to production/ distribution constraints, and if incomes are falling and governments intervention capacity is already strained, adding further to food prices risks potentially intensifying present crisis (food prices having highly non-linear societal impacts), to marginally ameliorate a future crisis. In such contexts, people tend to become even more present focused. This is a feature of civilizational lock-in, we become trapped within increasingly dangerous systems of dependency as our adaptive capacity becomes further undermined.

The process of escalating global stress and shocks raises the likelihood of catastrophic system failure (outlined in section three). It may be due to a shock or combination of events that once could have been handled with ease, but now tips a weakened and degraded system into a breakdown. More specific examples include: constraints on growth, rising volatility, and the perception that this will intensify into the future increase the likelihood of a complete failure of an already seriously over-extended financial system; social fracturing can intensify as societys expectations can no longer be met, leading to societal breakdown; while rising international tensions raise the risks of war involving critically connected countries that could initiate a cycle of global de-stabilization; meanwhile the threats of a severe natural disaster still remain, and that of a catastrophic pandemic grows.

If much here does not reflect a dominant consensus, mostly its not for subtle or technical reasons. Economic models are creatures of historic macro-stability, and do not see the complexity that manifests vulnerability when shocks are large enough. Scientific bodies (the IPCC, the IMF, for example) look at stressors in semi-isolation not their interactive, non-linear and accumulating effects through integrated global systems. Such conditions can also make decision-making based on cost-benefit analysis close to meaningless. In addition, some stressors are given a prominence, while others are ignored or mis-understood. It is reasonable to conclude, therefore, that we are underestimating both the likelihood and impacts of emerging systemic risks, even if there might be disagreement on the details.

In many complex systems rising systemic volatility, and a slowing recovery from smaller shocks (because internal and external resilience is being compromised) are indicators of approaching tipping points when integration at whatever scale can no longer be maintained. Timing such tipping points is inherently difficult, but this is no reason for complacency, for as we have seen, the structure of our human system means destabilization can emerge rapidly. But by being attentive to such early-warning signals, we should find some motivation to engage in preparedness.

As the global economy enters a global slowdown, it is expected that new monetary and fiscal mechanisms will be used to boost demand in the real economy. There is an assumption that this will involve investment in green infrastructure. However, green investment does not necessarily increase resilience, and it may even reduce it. As such monetary and fiscal policy is likely to be time limited and cannot forestall growing systemic risks for long, it makes sense that that funding is prioritized on resilience. This includes investment inextant critical infrastructure resilience(e.g. the ability to sustain urban water and sanitation in a crisis), andbasic societal resilience supporting the basic welfare of societies if extant critical infrastructures were to fail. In other words, we need to prioritize while we still have the adaptive capacity.

Mr Scoresby (An aviator):

You speak of destiny as if it were fixed. And I aint sure I like it any more than the war Im enlisted in without even knowing it. Wheres my free will if you please? And this child seems to me to have more free will than anyone Ive ever met. Are you telling me shes just some clockwork toy wound up and set going on a course she cant change?

Serafina Pekkala (A witch):

We are all subject to the fates. But we must act as if we are not, or die of despair.-His Dark Materials, Philip Pullman

The systems that sustain us, are undermining those same systems. Consequently, we are most likely locked-into a process of accelerating destabilization that we can do little to avoid.

Two broad and inter-related Large-Scale Systemic Risks have been sketched above a) an Axial Stress period of deepening socio-economic stress, growing shocks and uncertainty through which no government, no matter how wise, strong, and compassionate they are can sustain societal expectations, and b) Systemic Failure, where interdependent societal systems fail collectively, this may be reversible, or not. Both we have argued have a growing likelihood, the impacts would be prolonged and severe to catastrophic. One may think other, kinder futures are more likely, however, prudence should make us mindful of the downside risks, thats why we buy fire insurance.

One response is to attempt radical surgery or deep systems change upon our societies. But as Brexit has showed, bold visions unmoored from the complexities of societal operations risk undermining those visions as radical interventions in one part can cause rapid and unintentional shocks that can cascade and feed-back through the wider systems. One can never know for certain where tipping points are, that once crossed, can initiate such a destabilizing process. This vulnerability to major intervention can be expected to increase as environmental, economic, and social stresses mount. Whether it is political or economic revolutions, rapid and deep de-carbonization, or radically transforming critical societal systems we cannot know in detail the impacts on the foundations of societal welfare, and even the best of intentions can initiate disaster. If that happens, we may lose the tools and adaptive capacity that we expected to complete the vision, while existential concerns drive a wholly different dynamic. And as disaster may indeed be coming, irrespective of such actions, it is probably more effective, urgent and pro-social to work on preparing for the impacts now.

As people and institutions rarely acknowledge a warning that challenges established worldviews and analytic traditions, personal and institutional sunk costs, and cherished expectations, one can only expect a limited engagement from society. Yet it is also the most significant and worthwhile challenge that has been offered in many generations. That is, to build the social capital and preparedness capacities to face unprecedented challenges in the years ahead. This cannot be achieved by international institutions or governments alone, but it will require effort and imagination through all levels of society.

It has been a disorientating and depressing experience for many to experience the rise in anger and polarization of recent years. But the reality of our lives, irrespective of wealth or position, is that we are thoroughly interdependent with each other, the socio-economic networks that bind us, and the planet and its living system that holds us all. When we tear at the fabric of our relationships, we undermine the welfare of all, and our capacities to face the dire challenges ahead.

See more here:

Brexit: Systemic Risk and a Warning - Resilience

The Return to Power of Local Hotel Brands? | By Robert Govers – Hospitality Net

With the dramatic collapse of Thomas Cook it seems that the era of the neo-colonial tourism system, in which the travel trade pulled the strings, is finally coming to an end. For one and a half centuries, since Thomas Cook started the tour operating business around 1850, international travel and hence the hotel industry depended, to a large extent, on wholesalers and retailers. Assisted by the industrial revolution and rapidly expanding transport systems, international travel exploded and travellers relied on travel agents and tour operators to book their trips. Horizontal and vertical integration resulted in travel trade managed hotels and global brands. Prior to this, of course, lodgings were always local; the town-inn being the pre-modern boutique hotel. Now we call them post-modern and I think they might be returning to power.

From Trading to Brokering

Throwback: travel and tourism in the twentieth century. It is not actually that long ago, yet hard to imagine for many, that international travel exploded at a time that consumers had no online booking platforms to compare offers or check reviews, no systems for email, messaging, chat or other fast ways to communicate and they could - literally - not afford to place international phone calls. The only way that hotels could stay in touch with their guests after they left was through snail mail; in the hope to build some loyalty. Some global hotel chains would install local call centres across the planet for loyal guests to book directly through a toll-free number, but that was the exception rat her than the rule.

It was, of course, the travel trade, with their network of offices and agencies, that functioned as an inescapable link between the hospitality industry at the destinations and the (potential) guests elsewhere. They were indeed "traders"; wholesalers and retailers buying airline seats and hotel beds in bulk to resell them to consumers - packaged or not. The travel trade also took care of hotel marketing, often in a highly standardised fashion to facilitate comparability and as a firewall against legal liability claims of misleading information. Hence, the star classification systems. The character of the hotel and the identity of the destination were virtually irrelevant.

Obviously, at the end of the twentieth century the internet turned everything on its head. Suddenly the hospitality industry had direct access to consumers worldwide and money was to be made cutting out the middle-men. Now we know that the cost of distribution is s till considerable either because of the cost of internal systems or the commissions on bookings through online platforms, but the marketing control is now firmly in the hands of hotels themselves. Distribution now works largely on an agency model where intermediaries take commissions on bookings, rather than ownership. This has changed and will continue to change the face of the hospitality industry, particularly for holiday resorts and global brands.

The Colonies

The travel trade in the outdated tourism system obviously resulted in tremendous commodification; particularly in the leisure travel segment. A standardised product for a mass market. Sea, sand and sun, wherever it shines, largely inconsiderate towards local customs, culture or traditions; or offering clich simulacra thereof as night-time entertainment as part of the "guest animation programme". The idea was that "civilised" travellers could enjoy themselves according to their own elevat ed customs (even if that involved excessive alcohol consumption and culinary annexation with English breakfast, hamburgers and French fries) with disregard for the local host community in the destination. Resort hotels - particularly around the Mediterranean, but also in the Caribbean or elsewhere - effectively became "Western" colonies.

Demand for such "tourist reserves" will always be there, but the dwindling role of the travel trade and the ability and demand of consumers to book online will force these players to reconsider their positioning. Unprotected by opaque distribution, they will become increasingly exposed to competition and therefore need to consider their competitive advantage. Just offering all-inclusives on a beach will not be enough. Combine that with tourists' expanding travel experience and expectations, the increasing pressure on resorts to question their local socio-economic role in the host community, and a growing complexity of the global market for travel and tourism, it seems likely that this part of the hospitality industry will continue to change.

And Global Brands

As travelers - in the old tourism system - were in the dark, travel and tourism businesses created global brands for them to put their faith in. Global travel trade brands, airline brands, hospitality brands. All of that made complete sense as ways to build reliability, trustworthiness and consistency in an opaque market. Even attractions have become global brands (Disney, Madame Tussauds, Guggenheim, The Dungeons). All global brands dominating destination brands.

But in today's transparent market in which the segment of experienced travellers is rapidly growing, is brand loyalty under pressure? With online search and full market access, is brand recognition still crucial? With online reviews, is predictable standardisation still relevant? If travellers from wherever, going wherever, can search for the property that best serves their requirements and they can trust the reliability of the offering based on the reviews of peers, do they still require the reassurance of a global brand or will the attractiveness of a unique local experience, as opposed to a homogenised offering, outweigh the somewhat increased unpredictability?

To Imaginative Communities

With the declining need for distribution-controlled resorts and global brands, two counter movements play into the hands of lobal hotel brands. First, destination management organisations, policy makers and stakeholders are increasingly asking themselves the question: "what type of destination do we want to be and what sort of travel and tourism do we want to attract". They are looking for sense of place, purpose and distinctiveness, as a reaction to the threat of globalised homogenisation, commodification and - as a result - overexploitation. Destinations need to stand out, be in control and build a re levant and memorable reputation based on identity, originality and sustainability. I call them Imaginative Communities. Second, more and more travellers are looking for authentic local experiences. This can be gauged from the success of AirBnB, design hotels and unusual lodgings. With local host communities as well as guests looking for distinctiveness, it seems that the hospitality industry will continue to be pushed towards change.

One such development seems to be the inevitable return to power of local hotel brands. They understand the local community; can build authentic local experiences and support and enhance imaginative local reputation and marketing strategies. That doesn't mean, of course, that these local hotels can't be part of a larger chain. Yet, it seems that for reasons of experience enhancement, it appears to be more logical to apply a house of brands strategy than a branded house strategy. In addition, obviously, labels and collectives such as Leading Hotels of the World, Relais & Chteaux or Historic Hotels of Europe might become more important as market signals based on character as opposed to brand. Because, indeed, character, distinctiveness and authenticity will be the drivers for the future, not predictability.

Link:

The Return to Power of Local Hotel Brands? | By Robert Govers - Hospitality Net

Ghanaians could well face the wrath of God should they betray the Free SHS provider! – Modern Ghana

Some of us were not in the least astounded when the vast majority of the NDC Delegates overwhelmingly threw their support behind Ex-President John Dramani Mahama during the NDCs 2019 flagbearership race.

Critical observers cannot also stand accused of harbouring risible and inborn proclivity towards the former president for suggesting somewhat passionately that there are not many true nationalists who will gleefully shrill and thrill over the return of Ex-President Mahama given his calamitous errors in judgement which culminated in huge economic collapse.

And more so it is not farfetched for one to suggest that it is only the diehard supporters, many of whom probably laid hands on big chunks of the national cake, shared unequally by the former president, will clamour for the return of their Messiah.

Truth must however be told, the Mahamas praise singing bandwagon never experienced the harsh socio-economic standards of living their redeemer Mahama wilfully brought upon the nation. So, what do you expect? They will definitely clamour for the return of the spoon that over fed them.

If you may recall, during the NDCs 2019 flagbearership contest, the other potential presidential aspirants emitted vehemently and inexorably that former President Mahama was the main reason why NDC lost the 2016 election.

Unsurprisingly, however, the multitude of concerned supporters within the NDC were in solidarity with the then aspiring flagbearers.

The aggrieved supporters uncompromisingly ventilated their illimitable indignations over the comeback of former President Mahama.

Bizarrely, while the sceptics were insisting that Mahama was not up to the task during his tenure in office and must therefore be replaced with a much more capable flagbearer, the Mahama loyalists were moving heaven and earth to have him back as the partys next presidential candidate.

To be quite honest, some of us are struggling to get our heads around how and why anyone with reflective thinking prowess could aim accusing fingers at the critics for insisting that Mahama kept his eyes off the prize and therefore does not warrant another chance at the presidency.

In as much as former President Mahama commands some respect among the NDC foot soldiers and a section of ordinary Ghanaians, the sceptics could not be far from right for being doubtful over Mahamas 2020 electoral chances.

Given the circumstances, it came as no surprise to some of us at all when a group of organisers within the opposition NDC beseeched the National Executives of the party to allow Mr Alban Kingsford Sumana Bagbin to go unopposed in the partys 2019 flagbearership contest (See: Alban Bagbin must go unopposed NDC organisers; ghananewsagency.org/ghanaweb.com, 12/03/2018).

So many people in the party feel Hon. Bagbin is the best person to lead us into 2020 and the reasons are pretty clear: he is the exact contrast to former President John Mahama in the matter of marketability and yet retains the Northern extraction that will satisfy the need to have a Northerner complete an eight-year mandate.

Back then, the spokesperson for the group insisted passionately that since corruption would be a key campaign theme in 2020, and the fact that former President Mahama administration had issues with corruption, Ghanaian voters would be forced to reject him if he was to be elected as the next flagbearer.

In fact, it is not only the aggrieved NDC organisers who have been expressing concerns about the corruption in the erstwhile Mahama administration.

Somewhere last year, the NDC founder and the former president of Ghana, J. J. Rawlings, audaciously came out and disclosed that the corruption in the Mahama administration was so pervasive to the extent that a former NDC minister licentiously bought two luxurious mansions worth at a staggering $3 million from an estate agent in Accra shortly after the Mahamas government exited power (see: NDC minister grabs two mansions; dailyguidenetwork.com, 12/06/2018).

And more so prior to the NDCs 2019 flagbearership contest, the Honourable Bagbin, the MP for Nadoli Kaleo and a contestant of the NDCs presidential race, attributed the humiliating defeat of Mahama and the National Democratic Congress (NDC) in the 2016 general elections to bad governance (See: Mahama's boys bought V8, built mansions in 4 years Bagbin; myjoyonline.com/ghanaweb.com, 19/08/2018).

Mr Bagbin was reported to have quizzed somewhat dejectedly: Dont tell me that the boys that suddenly came closer to the president within four years can build mansions and buy land cruisers and you say there are no resources, where are they getting the money, their salaries?

The crucial question then is: is former President Mahama the only capable leader in the NDC?

In fact, some of us will not be surprised a bit if the teeming supporters of the other potential presidential aspirants revolt againstMahama during the 2020 general elections.

To be quite honest, some of us are struggling to comprehend how and why any real patriot would seek the return of someone who disastrously collapsed the countrys economy to the detriment of the poor and the disadvantaged Ghanaians.

So the Mahama loyalists would want us into believing that every single Ghanaian was oblivious to the happenings in the country prior to the 2016 general elections?

The fact of the matter is that the diehard NDC supporters were living in a denial about the harsh economic conditions prior to the 2016 general elections.

Back then, the vast majority of Ghanaians struggled to make a living or eke out an income. The dreadful errors in decision-making, the incompetence and the unbridled corruption culminated in untold economic hardships.

In fact, one cannot help but to agree with those who insist that former President Mahama lacks effective leadership skills.

The sceptics however argue that it was due to former President Mahamas poor leadership qualities that a GH9.5 billion debt in 2009 rocketed to an incredible GH122.4 billion in just eight years.

Besides, the critics have been maintaining that former President Mahamas dreadful errors in decision-making accounted for Ghanas economic downslide.

Take, for example, Ghanas GDP shrunk from $47 billion to $40 billion in just five years.

Somehow, Ex-President Mahamas decision-making came under sharp scrutiny when he abysmally dragged an economic growth of around 14% in 2011 to a nauseating 3.4% as of December 2016.

It is also true that the NDC administration moved a gallon of petrol from GH3.69 in 2009 (Ghanabusinessnews.com/energypedia.info, 06/01/2009) to around GH18.00 in January 2017(See: Fuel prices increase by about 11%; cityfmonline.com/ghanaweb.com, 05/01/2017).

If you may recollect, former President Kufuor left the currency exchange rate at around GH1.20 to 1 U.S Dollar in 2009 and the NDC administration dragged it to GH4.20 to 1 U.S Dollar by December 2016.

If anything at all, the good people of Ghana cannot so soon forget and forgive former President Mahama for the business crippling dumsor in the last five years of the erstwhile NDC administration.

In his desperation to solve the problem, Mahama administration ambivalently sign a superfluous Take or Pay Power Purchasing Agreements (PPAs) in which Ghana is needlessly paying over $600 million per year for extra power we do not need.

By woefully signing the excessive Power Purchasing Agreements and entering into Take or Pay deal, Ghanaian consumers are unfairly being forced to pay exorbitant electricity tariffs as a result of the Mahama governments negligence.

By and large, the critics insist that former President Mahamas government remains the worst ever in the history of Ghanaian politics.

In spite of all these, the loyalists of former President Mahama are ridiculously holding on to a phantom hope that they could bring Ex-President Mahama to recapture power in 2020.

Even though some of us are not in a position to offer any advice to Mahama and his teeming supporters, judging from the harsh economic conditions Ghanaians experienced during Mahamas coarse administration, it will take a miracle for discerning Ghanaians to easily forgive and vote Ex-President Mahama in 2020.

Given the unpardonable economic mess amid unmanageable high debt stock left by the erstwhile Mahama administration, it is extremely admirable for the Akufo-Addos government to seek to distribute the national resources equitably through the implementation of the costly poverty alleviation Free SHS.

In the grand scheme of things, Ghanaian parents are in a better position today than yesteryears, in the sense that the Free SHS is paving way for more than 500,000 children a year, including the over 190,000 children who otherwise would not have the opportunity to enter senior high school.

The good news however is that parents who have three children in SHS will be pocketing not less than GH16598.49 over three years.

So, we (me and my household) cannot turn around and blame God if we knowingly ditch the poverty alleviation Free SHS for something else.

K. Badu, UK.

[emailprotected]

Disclaimer:"The views/contents expressed in this article are the sole responsibility of the author(s) and do not neccessarily reflect those of Modern Ghana. Modern Ghana will not be responsible or liable for any inaccurate or incorrect statements contained in this article."

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Ghanaians could well face the wrath of God should they betray the Free SHS provider! - Modern Ghana

ET CEO Roundtable: Build a wealthier nation with state help, industry execution – Economic Times

The recent reduction in the corporate tax rate has improved the mood of India Inc, but panelists at the ET CEO Roundtable on Tackling the slowdown: What government and companies can do felt more was needed as they called on the government to speed up decisionmaking, address regulatory overreach and resolve the credit flow gridlock to spur investments and attract companies moving out of China.

Will the big-bang tax cuts announced last week actually help in reviving capex and will this slowdown actually transfor into some kind of higher growth?Nitin Gadkari: Today, economy is the most important subject for the government. But everywhere in the world, there are problems in the economy because of the business cycle, sometimes because of demand and supply and sometimes because of the global economy, as it is related to exports and imports. Currently our government is very friendly to investment and we want to encourage more investment, more foreign investment in the country. But after GST, we still need to support industry more. As far as my sector is concerned, in infrastructure, we need more cooperation from financial institutions. Because the loan is sanctioned but disbursement is not there. When the first instalment of investment is there, the second is delayed non-banking finance institutions are not in a good position. One of the reasons why we are facing a (difficult) situation in the automobile sector. A majority of road projects are sanctioned by NBFCs, not by banks. When I took charge as minister, there were several stalled projects; the amount involved was Rs 3,85,000 crore. But we resolved 95% of the problems. And today, we have decided that without 80% of land acquisition, without forest and environment clearance, we will not give an appointment date. So now, the projects are ready, viability is good, traffic density is good but we are not getting good responses. Cyril Shroff, Nandan Nilekani, Kalpana Morparia, Nitin Gadkari

We have three models PPP, BOT and hybrid annuity. But now we have just taken a decision and we are going for tender for BOT also; regarding monetisation, we are getting a good response from foreign investors. One of our bundles was oversubscribed and currently, the bank is ready to finance NHAI. I prepared one model and I have been asking them for 30 years but they say no, we will give up to 20 years. Considering the land acquisition cost and other costs, we will return their money on the basis of the toll within 12 to 15 years. So, on a project-to-project basis, State Bank sanctioned that we will give finance of Rs 50,000 crore and when you need more, we are ready. Then, another bank chairman also approached me and they are also ready. So, they are ready to finance NHAI. But for financing for contractors, there is a problem. Even the people who take BOT models, renowned companies with good reputations, even they find it difficult to reach financial closure. So, in this situation, what we need is more aggressive, positive cooperation from financial institutions. At present, on the basis of IRR, I am not demanding that they should finance non-viable projects.

Why do you think banks are not lending, as a lot of the banks are actually owned by you, the government, and you, of course, can push them to lend?Gadkari: Youve asked the a correct question to the wrong person.

The tax cuts have happened, the markets have risen. What is the message that you want to send? Gadkari: Everywhere, either it is business, politics or even in any career you take it, kabhi acche din nahi hota hai. There are challenges. There are problems and there are some people who convert problems into opportunities and there are some people who convert opportunities into problem. We need to improve the morale of financial institutions. Banking is a business. If, suppose, someone defaults, then we should not make him responsible for that. It is a business and in business 100% of the businesses will not succeed, that wont be the case. There is a risk. And after considering this risk, banks are still making good profits. So, if there is a problem, we have to support them. And for that reason, this is the time for government to see how we can improve morale, particularly of people who are related to banks. Investigations are going on. But you have to find out whether the mistakes are bona fide or mala fide. If the mistakes are mala fide, 100% we have to take action. But because of the business cycle, because of the global economy, because of demand and supply, if the account is NPA, we should not make him (banks) responsible for that.

What do you think the government can do to lift the morale of bankers and make them feel that they will not be targeted?Gadkari: The finance ministry has taken some decisions, we should give them time to rectify bona fide mistakes. But if the mistakes are mala fide, with bad intensions, we need to take stern action against them. Between the lines, we have to find a way out.

But there is some genuine fear among a lot of industrialists that the investigative agencies are probably going a little too far.Gadkari: Actually, your all questions are very appropriate but I am not the finance minister of the country.

Sunil Mittal, founder and chairman of Bharti Enterprises Tax cuts, it is generally believed, will lift investment and capex. What do you think will be the implications, the reasonable expectation that one can have from this move?Sunil Mittal: I think, clearly we are coming into this panel on the back of major announcements last week, tax cuts which have been very well celebrated. What you have to really see is that nations become richer, wealthier through a combination of state enablement and industry execution. There are times when one lags behind and there are periods of time when both could be limited by their own ambitions and there are great opportunities when both are aligned, and we have seen those spurts and ebbs and flows in the last 15-20 years. I think the minister rightly pointed out that challenges will always be there. Today, India is not just facing its own consumption challenges. There are global headwinds, whether you look at Europe, whether you look at other countries, there is a general sense of economic slowdown and India, therefore, cannot be completely decoupled from that.

Within India, my own view is in the last three to four years, execution has been weak, there has been a general sense of low spending; many projects have been hanging in between. The minister rightly pointed out that morale in the lending institutions has been low for a variety of reasons, some of them we already know and that needs to kickstart. So, I think the government has picked up that the enablement will be the first cause of action to be done for the execution to start. And from their point of view, the announcement by the finance minister of deep cuts. In fact, the industry was taken by a great deal of surprise on the pleasant side.

There are a few other things that need to be done, in my view. India is passing through a great deal of reset, whether it is the GST, whether it is going into digital mode of payment and currency, and at the same time, the economy has slowed down. So obviously, the issues are much bigger. Therefore, I would request the government to become the big enabler in the next 12, 18, 24 months and save some of the treasures of the country, national assets of the country. When Jet Airways goes out of business, it is not just one company going out of business, it is a vital national aviation infrastructure that has disappeared overnight. Seven or eight telecom companies have completely gone out of business. I think the government, as it is resetting the economy through new ways of business, needs to bring out a mechanism in which IBC, for example, which has been put into play, needs to be accelerated.

Wherever promoters, owners, shareholders cannot support their companies which are national treasures, they should be quickly replaced with somebody else, so that the national treasures can carry on contributing to the national economic momentum. So right now, I think the job of the government is to enable as much as they can, whether you call it ease of doing business, or opening the taps of the banks.

The minister spoke about logistic support, lowering of power cost, lowering of cost of capital, all these things are necessary. I think India remains a huge market without a doubt with great promise. It is a continent of consumers. Entrepreneurs in India there are so many entrepreneurs who one can see are doing extremely well are absolutely raring to go.Nandan Nilekani Non-Executive Chairman, Infosys

The tax cuts have come at a time of big resets. Is it enough to lift us out of the slowdown?Nandan Nilekani: I think certainly it will have a very positive impact in getting companies to invest, but I really think that the strategic thing is to revive credit to the economy, especially to small businesses.

Today, only 8% of Indian small businesses get credit from the banking system and because of a combination of factors, including the public sector banks having high NPAs, the NBFCs having an asset liability mismatch, the whole thing is gridlocked. We are very lucky because I think if we are going to start a new cycle of credit we should do it very differently because of three developments: the first is, we now have entirely digital transactions possible for credit. We can dramatically expand the cycle of giving credit.

Second, over the last five years, we have dramatically seen that new business databases are available. GST has 11 million businesses with invoice details, the income-tax system has all income tax payments, the MCA has got all your corporate details, banks have bank statements, so suddenly we have this massive amount of data. So tomorrows credit will be data-based, it would not be randomly decided.

The third thing is what you do with fraud over invoicing, under invoicing, round tripping, shell companies There are about 10 or 12 ways that fraud is happening and that is all those can be caught in near real time with AI. The combination of digital credit using the new databases and AI for fraud will create a whole new architecture for credit where we can increase credit without creating tomorrows NPAs. And, because the credit decisions are traceable, all these worries of bank managers will go away because all will be based on facts. You have to rethink our whole approach to credit in the new world.Kalpana Morparia CEO, South & South East Asia, JP Morgan

A lot of talk about slowdown in credit to industry, especially to MSMEs. Given all that is happening in the financial services sector, how sound is our Indian financial system?Kalpana Morparia: So, in terms of capital levels, other than some state-owned banks, I think the private sector banks are extremely well capitalised. They still have just about 25% market share. They have the capital, they have the liquidity and they certainly have the managerial capabilities...I completely support the point made by Nandan, that in this new digital world, you will actually see a paradigm shift in terms of the way banks function.

Do you think we are over with the NBFC crisis? Morparia: We all love to talk about the NBFC crisis as being the single ill that has slowed down the economy. Let us just look at some facts. NBFCs today contribute 20% to the overall credit book in India, 16% is actually held by AAA-rated companies like RFC, REC, PFC, HDFC, LIC Housing. So, they are really talking about a 4% that could be under some ALM mismatch, could face some liquidity issues, one or two might eventually face solvency issues. But I just believe that given the architecture that we have, particularly amongst State Bank of India, a few other state-owned banks and certainly the private banks, I do not believe that this is really the villain in the piece that it has been made out to be.

The minister talked about inviting foreign direct investment (FDI) and we just had this big tax change last week. How are foreign companies reaction to that?David Sproul: Having a competitive tax rate is foundational in terms of encouraging business investment both FDI and local business investments. It also sends a signal that the government has listened to the feedback from business in terms of one of those changes. FDIs (foreign direct investors) are looking for very competitive tax rates, but they also want to see the government continuing to support investors, those who are creating jobs etc. And therefore, to me the tax cuts send a very, very strong signal. And certainly the initial feedback we have had has been very positive from business in terms of encouraging investment into the market which is already very attractive for them.

Do you think the shift that everybody is talking about factories moving out of China or moving to Southeast Asia is possible?Sproul: A lot will depend on other policies put in place to attract that sort of investment. Much of the narrative has been about factories moving from China to Vietnam or rather to Southeast Asia. There is no reason at all that it should not be in India, provided there is a confidence and a certainty that beyond competitive taxes and the right infrastructure, there is certainty that policies are going to be maintained. India has many advantages in terms of FDI with not just its local market but also a very highly qualified workforce and very obvious skills in technology.Uday Shankar, Chairman, Star & Disney India

Given all of that, what is really happening to consumer demand?Uday Shankar: A lot of positive changes are already taking place. The speed at which India is transitioning to a digital behaviour whether it is in transactions payments, whether it is in content consumption, whether it is in other forms of digital behaviour, is truly happening at a breath-taking pace. So, while there are a lot of issues that need to be fixed, we should not downplay the achievements. There are lots of infrastructural issues, in physical and technological infrastructure, that need to be changed. Things change fast for the better when multiple agencies and institutions of the society work in tandem. Working in isolation sometimes tends to lead to a situation where you are also working at cross purposes.

An important point raised is that the consumption slowdown that we have seen is more due to a shift in consumer preferences Shankar: I would be wary of making some hasty conclusions in that regard. Just because for a few quarters or a year or two automobile offtake has gone down, we should not talk about a large social preferential shift. It is related to larger issues. When people want to buy a car or people want to upgrade to a better car it is because they are feeling good that tomorrow is better. If they are concerned that there are issues and their behaviour becomes more cautious and watchful, a lot of those decisions get pushed down to tomorrow.

Mittal: There will be fundamental shifts in consumption patterns going forward. We perhaps have not seen very much as yet, more is to come in the coming years and decades. The millennials consume in a very different way. I think industries will need to start to think about how world is going to move, whether it is food delivery or ride-hailing cabs or shared services, the whole process is going into a direction where industries will need to review their own needs. But it does not mean that the consumption of one kind of product will completely disappear. It will shift to different categories. I personally believe the way India is going, given the leaderships focus on digitisation, mean India may actually leapfrog into areas which perhaps you would have never envisaged before. So I would say to all my industry peers and friends, prepare for shifts, plan for those shifts, invest in those shifts.

So, is this consumption slowdown temporary?Mittal: A country of this size, 1.3 billion people, is a continent of consumers. Young people are coming into the mainstream where people are wanting more and more products, more and more services. We see it all the time. When telecom used to have 800 MB consumption a month, it is a 13 gigabyte a month. Its a 14 or 15 times jump within just three years and this may well settle for 25 gigabytes, which will be highest in the world. This is a country of mass consumption. Your price points have to be right, your product has to be right.

How much are we capturing this shift towards digital consumption in national data sets?Nilekani: There are different aspects. One, of course, is the telecom revolution, which has shown 400 million smart phones, the data consumption, so that is one story. The second is the rise of ecommerce. If you put all of them together, it may be $15-20 billion of ecommerce going up to $100 billion. Third is digital payments. Today, UPI does 900 million transactions a month from zero, so that is just in three years as well. Then, the whole thing which is happening with data empowerment with the RBI, the account aggregators framework which allows businesses to get their own data and give it for lending. Each of these is taking off at a speed that is exceptional.

So, it reduces costs because digital is less friction. Second, it improves access because anybody with a phone can buy it and third, it reduces the sachet size because you can now do small, so a combination of cost reduction, spread and sachet leads to dramatic explosion. We just want to make it happen in multiple sectors.Cyril Shroff, Managing Partner, Cyril Amarchand Mangaldas

You cannot talk about economic revival without having a proper bankruptcy process. What has been the experience of IBC in changing mindsets and in helping Indian industry regenerate and grow?Cyril Shroff: Certainly, the IBC has been a dramatic market changing development. It has changed credit culture significantly. The mindset of entrepreneurs and businesses in terms of their borrowing behaviour and evaluation has significantly changed. But if you put on the banker side for a second, and just picking up on what the minister said on why bankers are still not exuberant, the fact is that they still have not seen some big cases closed.

There are so many of them and they are Rs 40,000-50,000-crore recovery cases. So, until some of these big elephants land, I think the uncertainty will still remain and the question will remain. It has to be viewed in the context of a general conversation on corporate governance and the IBC has been a part of that conversation as well. When you are in the IBC situation, there is also almost a parallel conversation that takes place on what led to that insolvency, and that inevitably leads to a governance conversation on what failed. Very often, in nine out of 10 cases, you will probably see something which is murky in the behaviour that led up to this as well. I think India is not only in a reset stage but it is moving from a relationship-based culture to a rule-based culture and we are somewhere in the middle of that process.

IBC is one facet of it but it is to be seen in connection with everything that is happening including corporate governance, changing the rules, and some of the stuff that you mentioned as well in terms of greater enforcement. It is all happening together and that is why I think to some extent, corporate India is like a rabbit in the headlights at the moment.

IBC said that you got to do everything in 270-280-odd days. Now it has got extended to over 300 days. Why so much delay? Why is it that we do not have closure?Shroff: It is a combination of factors. Partly, the judiciary is to blame as well. I think we have still not come to exact terms on what is the role of natural justice and so on, the full impact of the rule of law system and how it should be viewed in the context of an economic legislation like the IBC. Which is why on any major case, the 270-day deadline has almost been absorbed and breached, and even 330 I think is going to be challenged. I do not see much hope over there. That is one of the main reasons why the bankers are bewildered as to when is this is going to end.

Mr Gadkari, on the issue of judiciary, one of the countrys most prominent lawyers Harish Salve said recently that the Supreme Court is to blame for the slowdown because of 2G, because of coal block cancellations. What do you think?Gadkari: We respect the Supreme Court but only in my department, I am facing a loss of more than `5,000 crore due to the courts. I am paying compensation to contractors. Now, in every case, everyone has the fundamental right to appeal, but time is the problem. I understand everyone has an important role, I respect the judiciary, I respect the system, but the problem is not taking decisions. Today, I have found a file that the finance ministry has already given my ministry permission to raise Rs 75,000 crore from the market. My ministry again sent it to the finance (ministry) that we are going to raise Rs Cyril Shroff, Nandan Nilekani, Kalpana Morparia, Nitin Gadkari 25000 crores, please give us permission. So I asked why are you giving this file to the finance ministry when it has already given permission? This over cautious and conservative attitude is a problem.

Is that because of the fear of the judiciary?Gadkari: I do not have any fear about the judiciary, I respect it. If anything wrong is found from our side, they have the right to take decisions but there has to be a time clause. Please dont waste time. Time is very important, whether it is judiciary or it is with the highest officer, whether with the system or with the politician. Whatever decision you want to take, you take it, but in a timely manner. This is more important than capital, resource and technology. I do not want to insult anybody, I respect judiciary.

Bankers are saying they do not want to fund infrastructure, they want to focus only on retail lending. Are they afraid?Morparia: I do not believe banks are afraid of funding infrastructure. I think the honourable minister made a great point that if a banker has made an error of judgement, and it is an honest error of judgement, if we hound him, the poor guys are going to live on his pension and now you are telling him you are going to be behind bars, obviously that is going to impair his ability to write big ticket cheques. So if we create an environment where we say everyone is presumed to be innocent until we actually have evidence of criminal act by them, I think that will go a long way in terms of bringing confidence.

The government has amended the Prevention of Corruption Act in order to set minds at ease, but has it worked?Morparia: Actually, if you see a loan of this size, there is no single individual who can take a decision, there are multiple committees within the bank, there is a separate risk department that assess the risk, there is a huge committee, there are board committees which also comprise independent directors that are looking at it. As Sunil said, we are going through a reset, we are wanting to grow but we have to significantly restructure a lot of our laws, processes etc so it is going to take time.

When you say everybody is responsible for the slowdown, what do you think individuals and companies can do to give the government a helping hand?Aga: I think everybody is responsible is the correct thing, but that is such a general statement, it does not say much. I think there has to be better trust and understanding between corporates and the government, and you cannot be suspicious of each one. It is not a good thing in the long run ever and I think if we use the talents and the suggestions of corporates and realise the power that the government has to do things, make things happen and they listen to each other, many things can happen. But unfortunately, there have been a few corporations which have not been fair, not followed governance but we cant paint every corporate with the same brush We must have rules and as Kalpana also said, not even allowing genuine mistakes to be made, then there will be fear and that is not a good way to grow the business.

Is the trust between governments and corporates better now, or is it worse?Mittal: I said it right in the beginning, it has got to be in tandem. Industry and government have to work together, we have a great opportunity in front of us. This is a once in a lifetime opportunity when China is in serious difficulty with world powers. We have never seen an opportunity like this in the last several decades. The world is slowing down. India is becoming attractive. Manufacturing at 15% tax rate becomes really attractive. People have gone to Vietnam and Cambodia in the past, not coming to India, all that can change now. India is welcoming FDI.

India is encouraging startup enterprises, the ingredients are there in place. All we need are a few more bold moves from the government in ease of doing business, taking this fear away as has been mentioned by the minister here, and the people will come and invest. There is so much opportunity out there and finally, I will again say there are national treasures which may get hurt in this reset. Government needs to come in very quickly to save them. I have 300 million customers. They consume content. Take the case of Zee, a very large cohort of 30 crore. I see it from my side, who owns it is a different matter but that is a national treasure, a media treasure.

Uday is here, he will know that, same for Jet Airways, same for many other companies. There are fantastic companies in infrastructure for example, which may just collapse if something is not done quickly. Government needs to move quickly to save these national treasures.

Do you think there is trust between the governments and corporates?Nilekani: I think the issue is, governments do not trust corporates because some corporates have not played by the rules, and bureaucrats do not take decisions because they are worried about the CVC, CAG and all the stuff. So, you have a credit gridlock and you have a decision gridlock, and I think unless you unlock both these things, you will continue to be in the same state.

But is that happening? How much progress do you think we have make?Nilekani: I think a lot more has to be done.

What are your views on ease of doing business?Shankar: Look, I think it is a little more nuanced, there are areas where the ease of doing business has improved a great deal, but there are agencies and there are organs where it needs to get a lot better. I think one big elephant in the room is the regulatory system. The entire regulatory universe needs to do all the right things, make sure that there is a level playing field and everybody plays by the rules. But those rules finally must have an end goal which is to offer better value for society and to make sure that business grows. I think the whole regulatory universe is something whose time has come for the government to revisit it fundamentally.

Shroff: I think the broad strokes of policy are in sort of decent shape but it is the last mile where there are a lot of problems. Let me give you just one example on infusing foreign capital in a listed company. We have this rule that the floor price has to be based on six months average. Now I personally know that there are several very large transactions which have been held up because that six months average price is unrealistic in such a volatile market. So, cant we look at that and make it a little bit more real? So the last mile, I think, is as important as the journey that preceded it, and there is a lot that has to be cleaned up.

What are your views on ease of doing business? How much has it really improved?Sproul: It has really improved. I have often looked at this just through the lens of the competitive index. When you look at the competitive index you can see how global economies compare and of course, India is sort of 42-43.

The really important thing is India has to work out where it wants to be competitive. You cant compare with the number one Singapore. I mean, Singapore has a population of less than 1% of India, which is not comparable. We have to look behind and say, where are the areas where India wants to be competitive. I think there are two things that come through: one of them is that there is a greater burden of regulatory, legal process to doing business in India than in some other economies. I think that is a very important point for businesses and government together to work through. And I think international businesses see that as a barrier which is very visible. Some of the other things are far more about just the sheer scale and socio-economic factors in India which are both an advantage and disadvantage. But I think the real question is focusing on where India wants to be competitive. One looks at those data sets, which give a lot of information but I do agree that one of the barriers is definitely the whole regulatory legal environment that creates perhaps unnecessary barriers.

See the rest here:

ET CEO Roundtable: Build a wealthier nation with state help, industry execution - Economic Times

Economic and Institutional Restructuring for the Next Nigeria – Soludo – Proshare Nigeria Limited

Tuesday, October 1, 2019 / 03:19PM / By ChukwumaCharles Soludo, CFR* / Header Image Credit: ThePlatform

Being the text of the prepared speech by Prof. Chukwuma Charles Soludo,CFR, former Governor of the Central Bank of Nigeria; at The Platform Nigeria'sannual independence lecture themed "Redesigning the Nigerian Economy withNew Ideas"held at The Covenant Place, Beside the National Theatre, Iganmu;October 1, 2019.

I:Introduction/Disclaimer

HappyIndependence Day Celebration!!!

Manythanks to Pastor Poju and the organizers of The Platform for the invitation. Letus start with a disclaimer. We accepted the invitation on 17thMay, 2019 and hadwritten our remarks a few weeks back. When our membership of the EconomicAdvisory Council was announced on the 16thSeptember, we agonisedas to whether we should still honour the invitation or whether we should stillpresent the paper. Finally, we decided to be here but have removed several ofthe pages that contain issues we believe should be on the agenda of theCouncil--- we do not want to pre-empt the work of the Council. Morespecifically, we do not focus on the macroeconomic, sectoral, and structuralpolicies, programmes and projects needed at the moment.

We focuson the future, andconcentrate narrowly on the type of meta-level,political-legal-governance foundation upon which the future can sustainablystand.Our thesis is that if you want to change a persistingeconomic structure, change the underling institutions (we can write a fat bookon this: our experience with the NEEDS vis-a-vis banking recapitalization/consolidationwas one case study that showed that to translate the hitherto slogan of privatesector-led economy into reality needed a different banking/financialinstitution...). For the national economy, it will be difficult to have acompetitive and prosperous post-oil economy of the future (with additionalhundreds of millions of citizens and dwindling land space) with the same legaland institutional foundation designed for consumption of oil rent. You can'tbuild a 100 storey-building upon a foundation of an old bungalow. A post oileconomy requires that all agents maximize their fullest potentials, and what isrequired will be a national rather than a federal response. You can't clap withone hand. Once the focus is wealth creation rather than sharing and consumptionof oil rents, we need a new national business model. Unfortunately, the linkbetween law- Constitution- institutions- Judiciary, etc and economictransformation seems to be the weakest link in our design of national agenda.In the future, hopefully the National Assembly, Ministry of Justice, the statesand other stakeholders might take up the assignment...

II:Context

We havenot come to read the Book of Lamentations about Nigeria's woes, nor to sing thesongs of David. We see the half-empty glass, but we prefer to focus on thehalf-full glass. We want to focus on the future-rather than the past or thepresent. As mentioned above, we are asked to speak on "The EconomicRestructuring of Nigeria"-an omnibus topic indeed! Since the First NationalDevelopment Plan (1962- 68), transformation of the economicstructure/diversification has been the fulcrum of all national plans. Fordecades, every government has tried its brand of 'economic restructuring' oreconomic diversification and yet the economy remains tied to the life-supportof oil, peasant agriculture and largely informal services sector. Incomeinequality, poverty, and unemployment remain major defining features of theeconomy.

Theurgency of the moment is warranted by the context of the new and complicatingrealities. Oil will be history in less than 20 years' time but the pressures ofpeculiar demographics and geography are upon us. Nigeria has one of the highestpopulation growth rates in the world. If current trends continue and youbelieve the population figures, then the future may be overwhelming. By thetime a child born today turns 30 (about 2050), there will be about 400 millionNigerians and when she is 80 (about 2100), there will be about 752 millionNigerians (third largest population in the world). All these people will haveto survive and prosper in a tiny but declining land mass (923,000 sqkm) - decliningdue to desertification and erosion, and Nigeria will have the highestpopulation density in the world among the top ten most populous countries.Lagos is estimated to be home to some 88 million people by 2100 crammed inbarely 3,345 sqkm of land (or 26,307 persons per sqkm-a nightmare! Lagos isclearly unsustainable in the long run and risky for its businessconcentration). All these people will need land, housing, water, food, power,education and health facilities, sewage and waste disposal, transportation, andyes, job, jobs! The population is very youthful with 43% between 0-14 yearsold; 53% between 15-65 years and 4% over 65 years.

And theworld is not waiting for Nigeria. The world is on the 4thIndustrial revolutionwith digital economy and we are struggling with the first stage of Rostow'sstages of growth. Artificial intelligence together with other futuretechnologies such as robotics, synthetic biology, computational science,nanotechnology, quantum computing, 3D and 4D printing, internet of Things,cognitive science, self-driving vehicles, etc--- will surely produce totallydifferent social and economic configurations than what we know today. Check outChina's "Made in China 2025 Plan" and its targeted top 10 industries with anaim to dominate the world. All these entail humungous creative destructiongoing on with huge job losses and future structural unemployment. Whileelectric cars are fast replacing diesel/petrol cars many of our people arestill building petrol stations; small shops are proliferating whileagglomeration in terms of huge shopping malls together with e-shopping are thetrend; automation is upon us, etc. Ordinary people who can't explain what hashit them, resort to all sorts of criminal activities to survive.

Most futurologistsbelieve that with billions of people being added to the global population, onlynew systems for food, water, energy, education, health, skills development andjob creation, economics and governance will avert potential disastrousconsequences for humanity and the environment (See the2015-16 State ofthe Future). Economic restructuring strategy of the future thereforeentails thinking through the alternative future scenarios and mapping outalternative possible proactive responses. In which areas/sectors does Nigeriaproactively position to become global leaders by the end of 2050 or thecentury? Closer home, Nigeria has signed the African Continental Free TradeAgreement (AfCFTA). Insularity won't be an option. The name of the game of thefuture in an increasingly integrated world is innovate/compete or die.

Let'sbreak it down. Economic restructuring of the future is about positioningNigeria to compete and win in an increasingly complex world therebyguaranteeing the security, prosperity and happiness of the 400 or 752 millionNigerians, in a world without oil. It will require deploying a gamut oflegal-regulatory-governance regimes, macro and sectoral policies and programmesto alter the spatial/geographical concentration of economic activities,structure of production from primary to industrial and post-modern servicesectors, from peasant to commercial agriculture, from exhaustible naturalresources to renewable and dynamic human resource as engine of sustainabledevelopment; etc. With a current GDP of about US$400 billion (down from $540billion) and negative per capita income growth (with rising unemployment andpoverty), the restructuring of the future would entail transformational changesto generate and sustain broad based growth of at least 7% (from recent 1-2%)which is required for poverty reduction and employment generation.

Putdifferently, if we target to be a middle-income country of say, US$7,500 percapita by 2100 (from about $1,930 currently), then we need a GDP of over US$5.5trillion by 2100 (thereby requiring double digit annual growth). The agenda todo this won't just require thinking outside of the box - it would requirethinking without the box at all: big, bold plan and action! At the macrolevel, the fundamental challenge currently is that the economy is stuck at avery low speed lane in the context of a debt cliff with little fiscal space,while monetary policy is at near its limits, and low savings-investment trap,with rising unemployment and poverty. To get to poverty reducing and employmentgenerating trajectory in the short-term requires serious heavy lifting, withmajor difficult choices and extraordinary coordination ahead. Surely thegovernments at all levels have their jobs cut out for them, and we won't dwellon that here.

In sum,the alternative future that we see is one without oil, and where otherexhaustible natural resources play very little role. The future economy will bedriven by peopleour youths and technology. Nigeria's people/youths remain itspotentially greatest asset--- potentially renewable resource for productivity,huge market, and even export. Yes, the next bigger than oil export earner forNigeria will (potentially) be its human capital. Currently, Nigeria earnsalmost as much from oil exports as it earns from remittances from its Diaspora.But we cannot export illiterates in a world driven by digital revolution. Theeasiest way to waste the future is to continue to churn out millions ofsemi-illiterate, largely unemployable citizens, most of whom see criminality asthe only route to escape the poverty trap or drug as the opium for solace. Withan urbanization rate of over 5%, the conflagration that might ensure whenhundreds of millions surge to the cities but can't find jobs, housing, waterand food can only be imagined. Soon, the rich won't be able to sleep becausethe poor, homeless and hungry are awake.

By theway, who says that we can't have smart population policy that encourages peopleto have the number of children that they can train, and also ensure reliablepopulation census using biometrics rather than the political population figureswe have? Whatever the case, the challenge is how to deliberately optimize thepotentials of the huge youthful population to be highly productive at home andcompetitive/exportable abroad. An educational system with 21stcentury curriculapowered by technology that guarantees one youth, one to three skills might be awinning strategy.

As theWestern population ages and declines, they would need productive labour andNigeria can smartly position to become the largest supplier of suchlabour-indirectly through outsourcing or directly. Nigeria would have toleapfrog the industrialization ladder and services sector to provide urban jobsand rely upon smart technology to grow the food to feed the hundreds of millions.Peasant agriculture has little future especially as the population densitysurges with rapidly declining plot of land per capita. If Nigeria prospersrelative to its neighbours, it would witness a surge in migration from otherAfrican countries under the free movement of goods and persons protocol-withall the further complications for existing facilities.

III: The Challenge of Weak Foundation

Thequestion is whether the existing foundation is adequate or appropriate for thedynamics and challenges of the future? Unfortunately, the answer is no. OurConstitution, together with its command and control institutions concentratedat Abuja was designed for and around the sharing and consumption of oil rent.It is largely obsolete for the demands of a productive economy (without oilrents) which requires competitive and flexible rather than unitaryfederalism. As the oil rent that held the system together is taperingoff, its internal contradictions have burst open, requiring a coterie of survival/copingmechanisms to keep the system afloat. But for how long?

See forexample, the 12 clusters of variables that are considered in computing theFragile/Failed States Index by the U.S Fund for Peace. The index which aims to "assess vulnerability to collapse"summarizes the failure of Nigeria'sinstitution and measures four clusters of variables, namely:a)Cohesion(securityapparatus, factionalized elite, and group grievance);b)Economic(economicdecline, uneven economic development, and human flight and brain drain);c)Political(statelegitimacy, public services, and human rights and rule of law); andd)Social(demographicpressures, refugees and IDPs, and external intervention). Nigeria's ranking hasdeteriorated from 54 in 2005 and now stands between 13 and 15 over the pasteight years and largely in the Red Alert category with countries such asAfghanistan, Iraq, Haiti, Guinea, Syria, Yemen, Somalia, etc. Long-termsustainable transformation must address the root of this systemic decline. In amulti-ethnic, multi-religious society such as ours, designing institutions forstability and prosperity requires great care and should always be awork-in-progress.

Since2005 when we delivered the Democracy Day Lecture and in several of our previousarticles (see "Nigeria Without Oil"; a three-part article on the backpage of ThisDay entitled "Reconstructing Nigeria for Prosperity", "ThePolitical Economy of Restructuring the Nigerian Federation", etc) we haveelaborately demonstrated how the current Constitution and its institutionsstifle innovation and competition and hence inimical to rapid economictransformation in a post-oil world. We showed how Section 162 of theConstitution has created a perverse Lottery Effect, destroyed the incentive forwealth creation on the part of governments and foisted an indolent culture ofentitlements. As opposed to the productive, self-financing regions of the FirstRepublic, all the tiers of government now converge at Abuja every month toshare largely oil revenue. Except perhaps Lagos State, hardly any other stateor local government or even the FGN can fund its recurrent expenditures withoutoil money.

Add tothe above the suffocating concentration of powers at Abuja (see the long listof items on the exclusive and concurrent lists of the Constitution).Consequently, the federal government is saddled with hundreds of parastatalsand agencies trying to inefficiently micro manage the entire country, with therecurrent expenditure of FGN plus debt service exceeding federal revenue. Abujaimposes common rather than minimum standards. It sets the same wage to be paidby states irrespective of their incomes-of course on the assumption that theoil money will always be there to pay for it. FGN maintains federal marriage registry,issues drivers' license-which should be local government affair, runs primaryand secondary schools, etc. We have centralized policing even with stategovernors as 'chief security officers'-and expect the future 400 or 752 millionNigerians to be secured from Abuja. The Federal Government has exclusive rightover all minerals, while the Land Use Act grants the Governors the right overland. To get to the solid minerals, you must have access to the land and theconflict between State and community powers over land vis-a-vis the federalright to what is underneath it has not been resolved. The enduringconflict as well as the continuing flow of oil rents have combined to providelittle incentive to develop the solid minerals. The list is long and we don'tintend to rehash it here. By trying to keep everyone in check, Abuja hasinadvertently held the entire country down.

One finalexample is the judicial system. Property rights and rule of law constitute thefoundation of a modern economy. In Nigeria, we copied the American presidentialsystem but forgot to copy their multi-layered judicial system consistent with afederation. Instead we are stuck with a highly centralized system consistentwith the command and control structure of the 1999 Constitution and its unitaryfederalism. Every little matter can end up at the only Supreme Court: ifsomeone steals his neighbour's goat in Calabar, or there is a dispute overownership of a shop in Jos or someone dupes a petty trader of her capital inLagos, the court cases may, on appeals, end up at the Supreme Court. Apre-election dispute in a local government election in Yobe or Abia state (apurely local and state affair) can also end up at the same Supreme Court and inmany cases the judgement comes after the wrong candidate has served out theterm.

Thecourts are congested: with about 117,000 pending cases at the Federal HighCourt alone, estimated tens of thousands at the Appeal court, and over 30,000at the Supreme Court. Court cases, including commercial disputes can last fordecades. As the population balloons, it is expected that the number of pendingcases under the current system will continue to multiply. The prisons areovercrowded. Chidi Odinkalu estimates (using case study of federal prisons in Imostate and if those are representative) that the congestion rate is 170% andwith 86% of prison inmates awaiting trial. Most prisoners end up serving termshigher than would have been the case if convicted. The judges are grosslyoverworked and underpaid. Nigeria's Supreme Court is probably the only one inthe world where the justices sit every day, and yet pending cases keep mountingin thousands. As the saying goes, justice delayed is justice denied. Howdo we expect the future economy to compete and win in the new world in asociety where it can take more than 20 years to settle a simple commercialdispute that takes few days in other countries? Also our system for fightingcorruption is again concentrated at Abuja. Can we seriously expect the ICPC andEFCC to police 774 LGAs and the impending 752 million Nigerians?

We can goon and on. Global evidence is that institutions drive economic transformationbut sadly much of our institutions are either obsolete or inappropriate for thedemands of the future. Some analysts and politicians brandish economicblueprints for a post-oil Nigeria but without the concomitantlegal-political-governance infrastructure to deliver such Plans. This isactually a key missing link in many of the failed National Plans not only inNigeria but also in many countries. Such economistic plans either sought tolegislate politics out of public policy or misunderstood change to be apush-button technocratic process. Such plans are often predicated on the falseassumption that committed and visionary leadership to implement them will fallfrom the skies without understanding that except by occasional fluke, the typeof leaders in a society is a product of the system. In the end, politicswill always trump economics.

It isfair to say that no issue commands a greater, broader consensus in Nigeriatoday than a recognition that the current system needs fundamental overhaul andhence the deafening call for "restructuring" the Nigerian federation. Almostthe entire Nigerian socio-cultural-political groups (South West/Yoruba Nation;South South; South East/Ndigbo; Middle Belt, and the former Northern Region)have either produced or are working to announce their template for "restructuring". Even some political parties, led by the All ProgressivesCongress (APC), have either announced details of their position onrestructuring or made "true federalism" the centre piece of their manifestoesfor a better Nigeria.

Morefundamentally, the APC promised a bolder action plan in its 2015Manifesto: "As a change Agent, APC intend to cleanse our closet tohalt the dangerous drift of Nigeria to a failed state; with a conscious planfor post-oil-economy in Nigeria. To achieve this laudable programme APCgovernment shall restructure the country, devolve power to the units, with thebest practices of federalism and eliminate unintended paralysis of the center".During the last general election, several candidates ran on the platform of 'restructuring'. The loudest agitation for "restructuring" comes fromethno-religious-political organizations and occasionally also some politicians.Unfortunately, the fundamental economic argument is often beclouded by thepolitics of the agitation. Mutual suspicion has crept in about 'motives' andthe word 'restructuring' now means different things to different people.

Perhapsit is time to simplify or change the language. Instead of 'restructuring', canwe call it 'systemic or institutional reforms', or 'devolution and fiscalfederalism' or 'Designing a new constitution for prosperity', etc. It is goingto be a political-legal process, with continuing bargaining among differentinterest groups and the ensuing compromises but should be guided by our historyand evidence. Useful lessons may also be learnt from other countries such asSwitzerland, United Arab Emirates, Canada, the U.S. and Brazil. We should keepit simple but with eyes on the ball, namely: to design relevantpolitical-legal-governance infrastructure to ensure security and prosperity ofthe 752 million Nigerians in 80 years' time or even the most populous countryin the world in the 22ndcentury!

WhatShould Be Done?

1)Create aProductive Progressive (PP) Constitution for a world without oil.

Amongother things, this would entail:

a)Political-governancearrangements that ensure participation and ownership of the Nigerian project byall citizens of the federation- a stable and moreefficient system which promotes fairness, equity and justice. The PPConstitution that gives everyone a stake should orchestrate a new Nigeriancitizen/identity. A key focus would be to address those clusters of variablesin the U.S Fund for Peace Fragile States Index and which ranks Nigeria underthe Red Alert category. In 2003-4, we identified that exiting the FinancialAction Task Force (FATF) list of non-compliant countries as well as debt reliefwere decisive for rejigging the economy and we framed policies and legislationaround them. We succeeded and the economy was better for it. Similarly, exitingthe Red Alert list of the Fragile States Index is a desideratum. Nigeria nowranks 14 while Ghana ranks 110-and little surprise that companies arerelocating to Ghana especially given the AfCFTA.

b)Devolution ofpowersaccording to the principle of subsidiarity and variablegeometry- away from the current system of unitary-federalism, withits choking concentration of powers and responsibilities at the inefficientcentre; thereby giving power back to the people. Unless we assume that oil boomwill rebound and endure, devolution is a matter of survival for the FGN and theeconomy. The federal government should loosen its hold on policing, electricity(power), railways, ports, aviation, business incorporation, vehicle and driverslicensing, taxation powers, regulatory functions, schools, prisons, etc. Thiswill give impetus for a totally different economy. The FGN can strengthen itsregulatory oversight, while states may partner with local and internationalcorporates to deliver on these. Cross River or Delta state, Rivers or AkwaIbom, for example, may attract foreign investors to develop their ports andcompete between themselves and reap bountiful revenues. Nigeria needs at least6- 10 other cities like Lagos to emerge (for the 752 million Nigerians) but itcan't happen without competitive federation.

Inaddition, the PP Constitution should define a new Fiscal federalism that isconsistent with devolution of powers and which alters the incentives faced byeconomic and political actors, thereby unleashing the competitive spirit, hardwork, innovation and efficiency which are the hallmarks of prosperous economiesof the future. Fiscal relations affect the behaviour of firms, households andgovernments and hence economic activity. The local government system should bescrapped from the Constitution. A federation has two federating units and notthree--- each state should decide on appropriate local government system forit. Section 162 of the 1999 Constitution needs to be scrapped and replaced witha fiscal arrangement that is consistent with devolution of powers. We also needto abrogate the Land Use Act of 1978, the Solid Minerals Act, as well as thevarious Petroleum/Gas Acts and amendments, and return the right of ownership,control and exploitation of these assets to the federating units as proposed bythe APC Committee on restructuring led by Gov. El-Rufai. In turn, they shouldpay appropriate taxes to the federal government.

Nigeriaurgently needs a newFiscal Responsibility Act to constrainirresponsible fiscal behaviour and provide incentives to create wealth.A new fiscal regime should ensure that never again shall we need a wholesalebailout of state governments. For example, fiscal transfers should bebased on performance as well as in the form of matching grants scheme (therebyreplacing unconditional transfers with conditional transfers). Another exampleis that the fiscal responsibility law could constrain governments at all levelsto meet their recurrent expenditures out of their internally generated revenueswhile revenue from natural resources are deployed only for physical and humancapital development. Such fiscal responsibility Act may also constrain at least90% of all borrowing to be for project finance that will repay itself. Ourcurrent structure is centred on consumption, with an unsustainable publicfinance. An alternative structure would free up resources for investment andhence growth. This will completely alter the incentive system and power adifferent trajectory for the economy.

Much ofthe tax powers are currently concentrated at the National Assembly and thisconstrains states' flexibility in deploying fiscal instruments for development.For example, why should all corporate taxes and Value Added Tax be paid intothe federation account? Wherein lies the incentive for states and localgovernments to attract and promote industrialization? Personal income tax willincreasingly not be enough incentive in a future dominated by robotics anddigital economy. If the power for the incorporation of companies is devolved tothe states, perhaps some could be creative to design tax haven status for somecategories of companies. Some countries make hundreds of millions of dollarsper annum from this kind of innovation. Our point is that the federatingunits should have the flexibility to deploy corporate taxation as a veritableinstrument to attract or promote enterprise and for independent revenues.Furthermore, why should we have uniform salary scales across the country oreven common minimum wage? There is just too much of a unitary system whichconstrains everyone to move at the same speed instead of incentivisingdifferent segments of the society to innovate and prosper at different speeds.

2.Legal-Judicial infrastructure and Law as active instrument of economictransformation

In the 21stcentury, a prosperouseconomy is not sustainable without a sound and efficient judicial system. Weneed a progressive and practical new structure that can deliver justice to thehundreds of millions of Nigerians and businesses at the shortest possible time.As a layman, we wonder why Nigeria can't have state or zonal appeals andsupreme courts over local and state matters or why state election matters shouldgo to federal courts in a federation. The PP Constitution should provide forspecialized courts, especially commercial courts. Nigeria needs to investheavily on the judiciary-infrastructure with cutting edge technology as well ascontinuous upgrading of knowledge/skills of judges. Our judiciary should bepart of our brand. Let's do what it takes to brand Nigeria as a nation of laws.For example, London could not have become an international financial centrewithout efficient judicial system or thousands of contracts in the worldindicating London as the jurisdiction for adjudication/arbitration. Can we atleast target to be the number one legal jurisdiction in Africa? With AfCFTA,businesses will relocate to more friendly environments since they will haveaccess to all African markets. As Africa's largest economy, we ought to haveits best judiciary. Furthermore, we need to consciously deploy law as aninstrument of socio-economic transformation by enacting relevant laws tounleash competition and enterprise as well as progressive regulations for thefuture economy. Our ministry of Justice should have a new job description thatis developmental.

While theabove might seem a heavy agenda, we can start with a low hanging fruit namely,the APC's minimum template. The Gov El-Rufai's Committee on Restructuring hasseveral interesting recommendations but three stand out, namely: state police,scrapping of the local government system from the Constitution, and resourcecontrol. The APC recommends abrogating the extant legislations and transferringrights over minerals to the federating units or states. With the APC CommitteeReport and Manifesto, it is fair for Nigerians to ask: so, what's holdingaction? The APC at least has a Committee Report which is public knowledge.Where is the position of PDP as the main opposition party?

What issuggested above is part of the foundational plan for Nigeria's futureprosperity without oil. The contradictions of the old, oil-based economyvis-a-vis the population and geographical pressures are swirling and thechallenge of a new institutional framework to lead the emergence of the neweconomy is urgent. We have a choice of pre-emptive, proactive action toorchestrate a new productive (rather than sharing/consumption) structure orwait until change is forced upon us in a most chaotic manner. A wise man getsthe umbrella ready before the rain starts. We are currently at the cul-de-sacand need a fundamental disruptive change to reverse the trend. A centralmessage therefore is that systemic restructuring is not only progressivepolitics but excellent economics.

3. Fixour broken politics through ideologically and value-oriented mass participation.

A securedand prosperous country of the future won't drop from the skies. Nor can welegislate politics out of public policy. Every advanced or progressive societywe see in the world today is the product of organization, struggles andcontinuous contestations for a more perfect union or society. In a democracy,there is no other route to a better future than the instrumentality ofpolitics. Politics is therefore too serious to be left to those who callthemselves politicians. It is our collective destiny.

Unfortunately,our politics is broken. It is destructive rather than developmental. We defineNigeria's current politics as largely "dining table politics"--- the 'you chopI chop', or what an author Michela Wrong describes as "It is our turn to eat" politics. Consequently, political parties are mere platforms to grab power---same people, same interest---driven by crass opportunism and primitiveaccumulation. It is largely about "what is in it for my pocket" and not about "how can I contribute to leave this world a better place than I met it"? When aminister is appointed, his friends and ethnic or religious group shamelesslycelebrate or complain depending on whether they consider it as 'juicy' or 'dry' appointment. Yet the same people complain about corruption in government. Wehave a national crisis of value dressed in hypocrisy. We really have a long wayto the future of our dream. But a problem identified is half solved.

Forstarters, we need to fix the electoral and judicial system to ensure that onlyvotes count and all votes are counted. This will transfer real power back tothe people, free from the stranglehold of an opportunistic elite. With power inthe hands of the people and with the institutional reforms proposed above whichrequire leaders with capacity for wealth creation, then ideas-based,cake-baking politics can emerge. The current politics is woven around thesharing and consumption of oil rents-and you don't need any productive skillsor to be a person of ideas to be able to "share the money".

But theoil money is fast running out. Total oil income is barely $100 per person-notenough to provide 21stcentury primary and secondary education to our children. The 2019budget of FGN (if implemented 100%) translates to about $120 per capita--- tofund debt servicing (which is about 22%), pay salaries, run the hugebureaucracy, schools and hospitals, police and military, maintain embassiesabroad, roads and railways, etc. The obscene cost of governance and stealing atall levels of government is known. This is within the context that somemillions of children are out of school, over 30% of the population are foodpoor, millions without medication, water, housing, and jobs while a fewpoliticians display obscene lifestyles. In the U.S, the wife of the Governor ofthe state of Maine (with per capita income of $47,969) in 2017 had to take up ajob in a Restaurant to augment the income of her husband- as they wanted tosave money to buy Toyota Rav4 car for her. In Nigeria with per capita incomeof $1,930 and even in states with per capita income below $1,000 per annum, youcan complete the story...! Soon or later, something will give and a totallydifferent politics needs to emerge to secure the future.

Ideas-basedor ideologically driven politics is the future. Forget about the names of theparties-democratic, progressive, liberal, etc-there are no discernibledifferences except the membership, which also switches and changes everyminute. A review of the manifestoes of the political party candidates duringthe last elections is troubling. Many of us still remember the four cardinalprogrammes and ideologies of the five political parties of the Second Republicbut I doubt how many people can coherently explain what their parties stand fortoday. For example, how can you identify an APC or PDP state if you seeone? Beyond sloganeering, we have serious work to do. Our view isthat as the system transits from a rentier, cake-sharing regime to one ofcake-baking, citizens of conscience, regardless of ethnicity and religion, mustrealign along ideological lines to offer Nigerians real alternatives regardingthe pathways to their future. Mass participation founded on patriotism,passion and values of hard work and integrity should drive the politics of thefuture. Those who have something to offer for a better future-especially ouryouths-- must stand up to be counted or stop complaining. The perverse value ofsome of the youths summarized by the phrase "get rich young or die trying" isnot part of the future we desire. We must be the change we want to see. Only avigilant and active citizenry that holds public officers to account will securethe future.

IV: Conclusion

We mustnow conclude. Our summary message is that an alternative glorious future - thenext Nigeria for 400 or 752 million Nigerians-- is possible. It is a futurewithout oil but powered by our greatest asset-human capital plus technology,and which guarantees security, prosperity and happiness. But transition to thatfuture requires a new foundation as it is impossible to try to build a 100storey-building upon the foundation of an old bungalow. Elements of thisfoundation include a PP Constitution that creates a competitive federation;devolution of powers that unbundles Abuja and loosens its choking strangleholdon the economy; a fiscal federalism that promotes competition, innovation andhard work; a new judicial structure and performance that brands Nigeria as acountry of laws with the best judiciary in Africa; and a new developmentalpolitics with citizens power.

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Economic and Institutional Restructuring for the Next Nigeria - Soludo - Proshare Nigeria Limited

Do you really think NDC faithful would ever condemn a coup dtat? – Modern Ghana

Some of us are not the least surprised to see some members of the opposition NDC vehemently ridiculing and dismissing the authenticity of the recent alleged coup plot.

In fact, ever since the news spiralled through that some alleged conspiratorial plotters are conspiring to destabilise the ambiance of the country, the NDC loyalists have been dismissing the veracity of the information, while contending vigorously that the arms and munitions found in the possession of the suspects cannot even kill a rat, let alone staging a coup dtat.

But the fact of the matter is that NDC faithful could not speak against a coup dtat as the party was born out of vicious coup dtats.

Mind you, there is widespread impression that NDC is synonymous with coup dtats and therefore the party loyalists feel uncomfortable to condemn such abhorrent action.

In fact, NDC was founded on the ideals of their coup making founder J. J. Rawlings (detailed in Article 6 of their party constitution which their founder Rawlings autographed with his blood).

Rightly so, the NDC loyalists would never agree with some of us for persistently analysing the current affairs through the lenses of the past.

But I am afraid we cannot make sense of the present happenings if we refused to take stock of the past events.

The story was told, somewhat vividly, that on June 4 1979, some mutinous army officers went into a conniption-fit, usurped the government of the day and unjustifiably released convicts and suspects from a lawful penitentiary, including the founder of the NDC, J. J. Rawlings.

If we stroll down memory lane, General I. K. Acheampong led a group of disgruntled army officers and deposed Prime Minister Dr Kofi Abrefa Busias government in 1972 and formed a government which they called The Supreme Military Council (SMC).

However, in 1978, General Acheampong was accused of economic mismanagement and forced to resign by a group of army officers led by General Akufo.

Subsequently, General Akufo and his other rabble rousers rechristened the government as the Supreme Military Council 2 (SMC2).

A sequential account is given, though anecdotally, that the harsh living conditions at the time prompted a group of patriotic citizens to stand up against the injustices and demanded a democratic rule.

But before the country could reach a consensus on the question of civilian rule, a group of disgruntled junior army officers led by Flight Lieutenant Jerry John Rawlings failed in their insurrection against General Fred Akuffos regime on 15th May 1979, which led to the arrest and trial of Rawlings and his cohorts.

Nevertheless, the judicial process was halted prematurely by a group of soldiers sympathetic to Rawlings, who revolted on 4th June 1979.

The June 4 1979 jailbreakers unabashedly released suspects and convicts from a lawful penitentiary, deposed the government of the day, and, gave uncountable innocent Ghanaians a hell in the process.

After unblushingly deposing General Akuffo and his Supreme Military Council (SMC 2) government, the stubbornly impenitent jailbreakers went ahead and formed their own government, which they called as the Armed Forces Revolutionary Council (AFRC) and appointed Flt. Rawlings as their chairman.

Rawlings and his minions vowed to lustrate the country of the rampant sleazes, corruption and social injustices which instigated their coup dtat.

So in their attempt to purge the country of the perceived injustices, they carried out what they termed house cleaning exercise,--they dealt with perceived offenders arbitrarily.

The mutinous jailbreakers proceeded with their intentions and callously exterminated prominent people including General Fred Akuffo, General Kutu Acheampong, General Akwasi Afrifa and many others.

After getting rid of individuals they viewed as a threat to their hidden agenda with an unabashed disgust, the jailbreaking cabals decided to conduct general elections for political parties in the same year-1979.

Following the successful election, Dr Hilla Limann and his Peoples National Party (PNP) emerged victorious in 1979.

An account is given, though vividly, that the Limann government assumed office at a time when the economy was in deep crisis. The credit lines to the country had almost dried up and were blocked due to brutalities and confiscations at the harbours and other points of entry into Ghana by the coup making founders of the NDC.

However, the story was told, somewhat poignantly, that through careful negotiations, preparations and the implementation of pragmatic policies and programmes, the Limann government managed to arrest the economic challenges.

More importantly, commendable efforts were made to repay Ghanas short-term debts, and, the Limann government demonstrated the ability to meet Ghanas debt obligations.

Consequently, Dr Limanns government managed within 18 months and restored virtually all traditional credit lines (Source: PNC).

But despite all the great efforts, Rawlings and his cohorts did not give Dr Liman and his PNP government the breathing space to govern the country, as they relentlessly breathed down the neck of President Limann.

As a matter of fact, Rawlings and his coup making minions unfairly kept criticising Dr Limanns administration for what the conspiratorial plotters perceived as economic mismanagement, until Rawlings and his jailbreaking geezers decided to depose Dr Limann.

Subsequently, Rawlings and the other mutinous jailbreakers took arms and succeeded in supplanting the democratically elected government of Dr Hilla Limann on 31st December 1981.

There is no gainsaying the fact that Rawlings and his rabble rousers ignobly supplanted power at the time when Ghanas economy was blossoming steadily in 1981.

Indeed, Dr Hilla Limann and his PNP government were hitting the ground running and therefore there was no need for anyone to disturb the ambiance.

Rawlings and his friends formed a government which they called the Provisional national Defence Council (PNDC) and appointed Rawlings as the chairman.

In their attempts to get rid of alleged sleazes and corruption, many Ghanaians were unjustifiably murdered or tortured mercilessly for apparent infinitesimal offences.

Some market women were regrettably stripped naked in the public and whipped for hauling their products or selling on high prices. While their male counterparts were wickedly shaved with broken bottles and whipped for offences that would not even warrant a Police caution in a civilized society.

As if that was not enough, three eminent High Court Judges and a prominent Army Officer were barbarically murdered by some mindless stooges of PNDC on 30th June 1982 for carrying out their constitutionally mandated duties.

June 30th 1982 continues to remain a dark spot in the nations political history and a nightmare for all judges in the country, after the three High Court Judges namely, Mr. Justice Fred Poku Sarkodie, Mrs. Justice Cecilia Koranteng- Addow and Mr. Justice Kwadwo Agyei Agyapong as well as a retired army officer, Major Sam Acquah, were callously murdered under strange circumstances at the Bundase Military Range in the Accra Plains, after being abducted on the night by some unidentified assailants (rawafrica.com).

The story is told that rigorous investigations revealed that all the three Judges were sitting on review cases brought by citizens disgusted over the treatment meted out to them by the Armed Forces Revolutionary Council, which the military junta formed after June 4, led by Flt. Lt. Rawlings.

It was, however, reported that the Judges ordered the release of persons who had been unlawfully sentenced to long terms of imprisonment during the despotic rule of the Armed Forces Revolutionary Council (AFRC).

Apparently, the Army Officer, Major Sam Acquah, was the head of administration who signed dismissal letters for some GIHOC workers, including one of the murder suspects, Joachim Amartey Kwei, whose services were terminated for invading and destroying property at the Parliament House.

Unfortunately, the PNDC fatuous apologists savagely murdered the three eminent High Court Judges and the Army Officer because their judgement did not go in their favour.

The Special Investigation Board (SIB) thus concluded that the abduction and murder was a diabolical plot orchestrated by, and with the connivance of the members of the Provisional National Defence Council.

As a matter of fact, Ghanas coup days under the jailbreaking founders of the NDC could be likened to: in the China of the Great Helmsman, Kim Il Sungs Korea, Vietnam under Uncle Ho , Cuba under Castro, Ethiopia under Mengistu, Angola under Neto, and Afghanistan under Najibullah.

Although the PNDC administration back then paraded some seasoned politicians, the vast majority of the military personnel who headed important Ministries were novices in the political scene.

Unsurprisingly, therefore, Rawlingss administration adopted a seemingly disastrous Economic Recovery Programme (ERP), which was introduced under the auspices of the World Bank and the International Monetary Fund (IMF).

Regrettably, the vast majority of tangible national assets, including the state owned enterprises were allegedly sold to friends and families for pittance.

In practice, the apparent unfavourable Economic Recovery Programme culminated in a catalogue of hardships. And, on top of the harsh programmes and policies which threatened the economic fundamentals, the population had to clutch itself for food shortages, a situation which the world press somehow ignored in favour of the concurrent Ethiopian famine that resulted in millions of deaths.

As food shortages escalated in Ghana, some traders started creating artificial shortages of goods by hoarding them so as to charge exorbitant prices at a later time.

Indeed, their desperate attempts to initiate the Programme of Action to Mitigate the Social Costs of Adjustment (PAMSCAD) did nothing to improve the unfortunate situation as untold hardships permeated many households.

Starvation, so to speak, visited the vast majority of Ghanaians, and hence developing revoltingly ugly collar bones which the humorous Ghanaians renamed as Rawlings Chain. That was indeed the pernicious extent of the hunger.

After imposing himself and despotically ruling the country for over 11 years, J. J. Rawlings retired from the military, formed the National Democratic Congress (NDC) and bizarrely metamorphosed into civilian president in 1992.

It is, however, worth stressing that Ex-President Rawlings 96 months democratic rule came to an end in January 2001.

Disappointingly, despite being in power for nineteen years, former President J. J. Rawlingss could not initiate any meaningful policies and programmes to improve on the socio-economic standards of living, but only managed to destabilise Ghanas macroeconomic indicators.

Thus, President Kufuor had a tough time running the country when he took over the presidency on 7th January 2001, as there was not much funds left in the national purse to plan anything meaningful.

Ghana was then declared as Highly Indebted Poor Country (HIPC). The newly elected President Kufuor had a tough decision to make, by either embracing or rejecting the HIPC status.

However, the forward thinking President Kufuor chose to ingest an insipid pill with a view to getting over the malaise. He thus pragmatically embraced the HIPC status in 2001.

On reflection, though, the benefits of the HIPC were unprecedented during former President Kufuors administration, from (2001-2008).

As a consequence, macroeconomic indicators begun to stabilize and Ghanas debt stock was significantly reduced by about $4 billion within that period (BOG).

Besides, as a result of the HIPC initiative and prudent borrowing, Ghanas external debt stock actually declined from $6.1 billion in 2000 to$3.8 billion by 2008 (BOG). It was an unprecedented achievement, so to speak.

The average GDP growth of the NDC from 1993-2000 was 3.8% while that of the NPP from 2001-2008 was5.2% with economic growth reaching 6.3% in 2007 and 9.1 in 2009 (GSS/BOG).

President Kufuor worked strenuously for eight solid years, laid a favourable economic foundation and retired honourably.

He then passed on the baton to the late President Mills on 7th January 2009, following his2008 election victory.

Regrettably, though, things started to fall apart. It went from bad to worse following President Mills sudden and mysterious death. The conspiratorial plotters then had a field day leading to the 2012 general elections.

Ex-President Mahama and his NDC apparatchiks went berserk in their desperation to cling on to power. Thus they broke all conventions. Many government departments spent over and above their allocated budgets.

Many observers unsurprisingly harbour a strong view that Ghanas economic downslide came about as a result of the unbridled sleazes and gargantuan corruptions which took place in the erstwhile NDC administration.

Unfortunately, former President Mahama and his NDC apparatchiks failed to acknowledge that corruption is a key element in economic underperformance and a major obstacle to poverty alleviation and development.

The general belief back then was that they bought votes with the tax payers money. They nonetheless clung on to power following the controversial election on 7th December 2012. Suffice it to state that their victory came with huge costs to the state.

The previously single digit inflation and budget deficit doubled astronomically. The GH9.5 billion debt which former President Kufuor and his NPP government left in 2009 rocketed artificially to unpronounceable figures. Our total debt ballooned to GH122.4 billion as of December 2016.

To be quite honest, Ghana went into the throes of economic collapse due to mismanagement and wanton sleazes and corruption under the leadership of Ex-President Mahama.

Take, for example, Ghanas economic growth slowed for the fourth consecutive year to an estimated 3.4% in 2015 from 4% in 2014 as energy rationing (dumsor), high inflation, and ongoing fiscal consolidation weighed on economic activity (World Bank, 2016).

Moreover, the high inflation rate remain elevated at 18.5% in February 2016 compared to 17.7% in February 2015, even after the Central Banks 500 bps policy rate hikes (the inflation stood at 15.8 per cent as of October 2016).

Besides, President Mahamas coarse government dragged the economic growth from around 14 per cent in 2011 to around 3.6 per cent as of December 2016.

Ex-President Mahama, so to speak, performed abysmally. He did not do enough to improve on the socio-economic standards of living.

In fact, former President Kufuor quadrupled Ghanas GDP to a staggering $28 billion in 2008. And the late Mills inherited oil in commercial quantities and managed to increase the GDP to $40 billion in 2011.

Suffice it to stress that former President Mahama disappointingly reversed the GDP to an incredible $37 billion as of December 2016.

But despite the huge economic mess created by the outgone NDC government amid the unpardonable stunted economic growth, the Akufo-Addos government has efficiently raised the economic growth from a disappointing 3.4 per cent as of December 2016 to over 8 per cent within a short space of time.

In addition, the NPP government has dramatically reversed the inflation rate to a single digit from a little over 15 per cent as of December 2016.

Within a short space of time, the Akufo-Addos government managed to raise the economic growth. Ghanas economy grew provisionally by 8.5 percent in 2017 compared to 3.7 percent in 2016 (Ghana Statistical Service, 2018).

Interestingly, the Industry sector recorded the highest growth rate of 16.7 percent, followed by Agriculture 8.4 percent and the Services 4.3 percent.

Services share of GDP decreased from 56.8 percent in 2016 to 56.2 percent in 2017. The sector's growth rate also decreased from 5.7 percent in 2016 to 4.3 percent in 2017.

However, two of the subsectors in the services sector recorded double-digit growth rates, including Information and Communication 13.2 percent and Health and Social Work 14.4 percent.

The Industry sector, the highest growing sector with a GDP share of 25.5 percent, had its growth rate increasing from -0.5 percent in 2016 to 16.7 percent in 2017.

The Mining and Quarrying subsector recorded the highest growth of 46.7 percent in 2017.

The Agriculture sector expanded from a growth rate of 3.0 percent in 2016 to 8.4 percent in 2017. Its share of GDP, however, declined from 18.7 percent in 2016 to 18.3 percent in 2017. Crops remain the largest activity with a share of 14.2 percent of GDP.

The Non-Oil annual GDP growth rate decreased from 5.0 percent in 2016 to 4.9 percent in 2017. The 2017 Non-oil GDP for industry recorded a growth rate of 0.4 percent, compared with 4.9 percent in 2016. Growth in the fourth quarter of 2017 reached 8.1 percent compared to 9.7 percent in the third quarter (GNA, 2018).

Apparently, since Ghana regained the independence from the British on 6th March 1957, the NDC tradition (PNDC and NDC) had governed the country more than any other government one can think of. In fact, that tradition had governed Ghana for approximately 27 years out of Ghanas 62 years.

If we revisit memory lane, the CPP tradition (CPP and PNP) governed the country for approximately 12 years.

Disappointingly, though, the last Nkrumaists government formed by the PNP, and led by Dr Hilla Limann, was deposed by the founders of the NDC which was spearheaded by Ex-President J. J. Rawlings on 31st December 1981.

The military regimes of the NLC, SMC 1 and 2 ruled Ghana for approximately 10 years before the founders of the NDC revoltingly usurped power on 4th June 1979.

The UP tradition (PP and NPP) total share of the day-to-day management of the country is about 13 years to date.

In my humble opinion, in terms of useful infrastructural projects which put the country at a substantial and auspicious position, Dr Nkrumahs CPP government did exceedingly better than any of the administrations that followed.

Then also, even though Prime Minister Kofi Abrefa Busias government lasted for less than three years, he did his utmost best in terms of meaningful development.

The achievements of Busia's government include inter alia, the building of roads, housing, provision of healthcare facilities and water.

Besides, Dr Busia was the first Ghanaian leader to create a ministry responsible for rural development, a decision which was in consonance with his consuming desire to improving the socio-economic living standards of the rural dwellers (Daily Guide, 11/07/2013).

I must, however, confess that generally, I abhor the shenanigans of coup makers, but General I. K. Acheampong (The Head of State from 1972-78) was an exception to my arousing disgust. Indeed, I had a great deal of respect for the man, primarily due to his great sense of foresight.

In my view, General I. K. Acheampong was a visionary leader who initiated pragmatic policies such as operation feed yourself and affordable housing units.

It is against such background that some of us cannot get our heads around how and why some people would choose to bypass the worst culprit, the NDC on Ghanas underdevelopment, and, would gleefully upbraid the likes of CPP, PNP, NLC, SMC, and NPP.

K. Badu, UK.

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Disclaimer:"The views/contents expressed in this article are the sole responsibility of the author(s) and do not neccessarily reflect those of Modern Ghana. Modern Ghana will not be responsible or liable for any inaccurate or incorrect statements contained in this article."

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Do you really think NDC faithful would ever condemn a coup dtat? - Modern Ghana

10 Steps to Prepare for Americas Economic Collapse

A frenetic intemperanceis destabilizing our economy. It is a restless, explosive and relentless drive inside man. It seeks to throw off all legitimate restraints and gratify all disordered passions.

The Troubles We Now Face

Because of frenetic intemperance, our economy is coming apart under crushing debt obligations: personal, corporate, state and local government, out-of-control federal spending and debt, runaway trade deficits, a manufacturing base that has largely moved off-shore, and a wobbly dollar whose currency reserve status is increasingly challenged around the world. Crippling socialist regulations, laws, and taxes stifle businesses and individuals alike, squashing initiative and removing incentives to work and invest.

Free Book:Return to Order: From a Frenzied Economy to an Organic Christian SocietyWhere Weve Been, How We Got Here, and Where We Need to Go

No one expects a house without a foundation to survive a hurricane. Likewise, it is unreasonable to expect that, as the winds resulting from decades of profligate, irresponsible behavior reach gale strength, our society will withstand their destructive power.

Will America Survive?The crumbling of the American way of life does not necessarily mean the end of America. We must pray, work and trust in God that from the debris of our crumbling society, a new America will arise an America of faith and family, service and honor.

It all hinges on how we confront the coming economic collapse.

This collapse may come suddenly, or in stages, like the steps of a staircase. In either case, we must be prepared.

Drawn from John Horvats ground-breaking book Return to Order: From a Frenzied Economy to an Organic Christian SocietyWhere Weve Been, How We Got Here, and Where We Need to Go,here are 10Steps that will help you and your family.

1. Stand Your GroundIn face of the crisis, some suggest we flee to Americas remote recesses or move abroad. This is wrong, for the world is so interconnected and interdependent today that the crisis will reach us, one way or another. More importantly, now is the time to fight for America, not abandon her.

Wherever you live and whatever your occupation, you must stand your ground, fighting for the common good of the nation legally and peacefully.

2. Reject False SolutionsFalse solutions abound. Know them and reject them. False solutions from the Left include: the push for more socialism, the surrender of our sovereignty to international courts, the move toward global government, and sub-consumerist, neo-tribal, and ecological ideologies. False solutions from the Right include a quasi-anarchical aversion to government, the nullification movement, secessionism, and off-the-grid survivalism.

3. Prepare with PrudencePrudence is the virtue whereby we choose the adequate means to achieve our goal.In confronting a crisis, we often find it easier to focus on the practical measures. Certainly these are not to be neglected, but assembling the spiritual means that will help tackle troubles ahead is more important.

For this, you must strengthen your faith, fortify your principles, and reinforce your convictions. Start this prudent preparation with prayer and calm, reasoned reflection. It will make your principles solid and your attachment to our institutions firm. Only profound and solid reasons will sustain you in the hard, long struggle.

4. Examine Lifestyles and Personal HabitsThe movement to turn America around starts within each of us, on the individual plane. Since frenetic intemperance and selfish individualism are at the root of our socio-economic troubles, we must resolutely oppose them in our personal lives.

This means eliminating certain habits and lifestyles, for example: spending beyond your means or on fads and fashions; making unwise, even reckless investments; being swept away by stress-filled schedules; allowing the frenzy of technological gadgetry to dominate your life; puttingmoneyabove family, community or religion; preferring quantityoverquality; and having an aversion to leisure and reflection.

5. Ponder the Moral DimensionFrenetic intemperance is rooted in selfish unrestraint. It fosters individualism, whereby God and neighbor are shut out from the imagined universe we create for ourselves. But Saint John teaches: [H]e that loveth not his brother, whom he seeth, how can he love God, whom he seeth not? (1John 4:20). How very different is the guiding principle preached and lived by Our Divine Savior: Greater love than this no man hath, that a man lay down his life for his friends (John 15:13). Through the generous giving of self we eradicate frenetic intemperance and selfish individualism from our lives.

Whatever Americas economic collapse entails for you and your family, developing the habit of self-sacrifice is excellent spiritual preparation. Indeed, this dedication to others and to the common good, this true charity, has sustained every Christian society for 2,000 years.

6. It Takes a FamilyParents correctly see their children as extensions of themselves and sacrifice for them. In turn, children feel compelled by the ties of nature to love, honor, and sacrifice for their parents who collaborated with God to give them their existence. These bonds of affection and service tend naturally to expand, moving beyond the nuclear to the extended family: grandparents, cousins, uncles, and so on.

Former U.S. Senator Rick Santorum correctly noted that, It takes a family. The family is a powerful and affectionate social safety net, and can provide many of the services usurped by the cold modern State. As an economic entity, the family tends to create patterns of production and consumption different from the flawed individualist model of today.

From the economic standpoint, the temperate structures of family tradition protect men from cut-throat competition. The predatory influence of usury is lessened since many have recourse to the family in times of need.

Your familys loving ambience is the easiest place for you to practice Christian charity.

7. It Takes a VillageFrom her perch on the Left, Hillary Clinton wrote that, It takes a village. This is perhaps the one point where we agree with her, though the underlying spirit is different. Hers is a socialist outlook, ours must be Christian.

We see the spirit of the family mirrored in associations and communities, towns and cities. These intermediate bodies between the family and the State are open to the temperate spirit of the family, which radiates its benevolent influence outwards.

This same family spirit has such a capacity to absorb and integrate that everyone in a region, even outside elements, eventually share a common family-like mentality, temperament and affection. A person from the South, for example, participates in the great Southern family or, to extend the analogy further, in our great American family.

Love your community. Be involved. Be proud of the good traits, traditions, products and cultural achievements of your region and do whatever you can to develop them further. Help others see the blessings God placed in your region.

8. It Takes a Christian StateThis sentiment of affection is in fact the most important element of union for the State. Constitutions, laws, and institutions may be indispensable unifying elements, but the most vital of all is family-like affection, without which the State is doomed to be divided against itself. So many modern states glory in their divisions! They are divided by political parties, factions, or intense economic competition. They should rather seek glory in uniting social groups, factions, and parties. Marriages should unite families, industries, regions, and nations. True patriotism is nothing but this family sentiment and common love of native land writ large and applied to all those in the same country.

The Christian State gives unity, direction, and purpose to society embracing, never absorbing; delegating, never concentrating; encouraging, never stifling.

Remain engaged in the Cultural War. Find ways to network with others and do everything you can so that our State and laws conform to the Divine and natural moral laws.

9. It Takes FidelityWithout fidelity to our Christian Baptism, competition and power struggles will inevitably occur. As a result, the family ends up being devoured by society, and society by the State.

A Christian family spirit must permeate society and State. Of all the dispositions and habits which lead to political prosperity, religion and morality are indispensable supports, wrote George Washington in his Farewell Address. And, though he spoke some 1,600 years ago, Saint Augustines teaching remains true today:

Let those who say that the teachings of Christ are harmful to the State find armies with soldiers who live up to the standards of the teachings of Jesus. Let them provide governors, husbands and wives, parents and children, masters and servants, kings, judges, taxpayers and tax collectors who can compare to those who take Christian teachings to heart. Then let them dare to say that such teaching is contrary to the welfare of the State! Indeed, under no circumstances can they fail to realize that this teaching is the greatest safeguard of the State when faithfully observed. (Epis.138 ad Marcellinum, in Opera Omnia, vol.2, in J.P.Migne, Patrologia Latina, col.532.)

Become an apostle of this Christian spirit, helping others take it to heart in their daily lives.

10. It Takes LeadershipIn face of the present economic crisis, we have two groups. Those with leadership qualities who succeed fabulously in what they do. And those who seek help and direction. What is missing is a way to unite the two groups. Therefore, weneed to regenerate a culture that encourages representative figures to unify the nation and confront the crisis.

We must encourage all types of leadership that express ties of mutual trust. We should think of concrete ways how we dress, speak, and lead to become truly representative figures for those who look up to us (be they in our family, business, parish, community, region or state). This would lead us to discover ways to embrace duty, responsibility, and sacrifice and reject a misguided and selfish individualism.

With many such dedicated leaders at all levels of society, laboring for the common good, we can restore America.

You will lead in some areas (great or small) and follow in others. Honor your leadership. Show your gratitude and honor everyone in leadership.

What Is a Representative Character?

A representative character is a person who perceives the ideals, principles, and qualities that are desired and admired by a family, community or nation, and translates them into concrete programs of life and culture.

We might point to famous figures like General George Patton or those lesser known people such as self-sacrificing clergy, devoted teachers, or selfless community leaders who draw and fuse society together and set the tone for their communities. Modern culture discourages the idea of representative characters and proposes false and unrepresentative characters that correspond to our mass society.

These 10Steps to Prepare for Americas Economic Collapse give a quick insight into John Horvats 400-page book Return to Order: From a Frenzied Economy to an Organic Christian SocietyWhere Weve Been, How We Got Here, and Where We Need to Go (York, Penn.: York Press, 2013), ISBN: 978-0-9882148-0-4. Hardbound. Illustrated. $21.95 (shipping free).

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10 Steps to Prepare for Americas Economic Collapse

Dollar Collapse Predictions: What Will Happen When It Happens?

Over decades, if not centuries, the US dollar has been the worlds leading currency. The central banks all over the world hold an enormous part of their investments in the US currency, while some private companies use it for international transactions. With this, the trade in US treasury has boosts the American economy and greases the wheels to the global financial system.

But, many experts predicted a tipping point will come that would cause the dollar to collapse, thus lead to a global economic problem. In this scenario, many investors would rush to other currencies to run off further losses. This would mean a breakdown of the national economy. The aftermath of this scenario could likely lead to a dollar collapse.

What is Dollar Collapse?

Full of sudden currency collapses have happened in history. A dollar collapse is characterized to a long-term depression in economic activity, increased poverty and a disruption of the social order. One of the primary roots of any collapse is the lack of confidence in the stability or efficacy of money to serve as an effective store of value or medium of exchange.

The main sign of a dollar collapse is when the value of US dollar drops. There are some conceivable scenarios that could cause a sudden crisis for the dollar. When there is a great threat of high inflation and high debt, in which rising consumer prices force the government to raise interest rates.

If the US entered a steep recession without dragging the rest of the world with it, anyone who holds dollar-denominated assets might sell them at any cost that includes foreign governments and no one wants to buy them, worst would leave the dollar. Thus, anytime, everyone should prepare for the worst, but you can prepare for a dollar collapse through these economic indicators.

If US dollar collapse happens, it might come to pass. No one would predict it. Thats because the signs of forthcoming failure are difficult to see. It is imperative for the government to take a necessary intervention to bring an economy back from collapse. Yet, this can often be slow to remedy the problem.

US Currency is weakening

When US dollar weakens, it suggests an adverse financial effect. A weaker currency would encourage exports and make imports inflated. This would mean decreasing a nations trade deficit over time. Every business will have a certain degree of effect depending on the increased price of goods and services.

A weak dollar can boost the gross domestic product during an economic recession. Because exported goods cost less, foreign buyers buy them in greater amounts. It can also result in higher inflation expectations and higher commodity prices. Furthermore, it could lead the Federal Reserve to react and tighten monetary policy.

The emergence of China and Europe Economy

The emergence of major foreign holders of US treasuries is a potential factor to a dollar collapse. Nonetheless, the US dollar must be quite resilient to bar this kind of occurrence.

The Risk of Growing Government Debt & Central Banks

According to the Federal Reserve and U.S. Department of Treasury,

foreign countries costs over trillion dollars of debts like China (about $1.17 trillion) and Japan (about $ 1.06 trillion) held the highest percentages as of January 2018. It appears that central banks will do its power to save the situation, but remember that central banks can also lose control. This situation would be very demanding for the government with high debt loads.

A dollar collapse suggests an economic plight. It is akin to deep recession that scarcity and shortage of resources would occur. One must prepare for the worst scenario and to respond to this kind of uncertainty, you must be mobile. Here are few ways to prepare and protect yourself and survive a dollar collapse.

1. Prepare your Finances and Start being Smart with your Money Now.

You start with cutting all unnecessary expenses and spend that money to pay down your debt. The possibility of losing your home to debt collectors is a very real prospect.

An Emergency Fund is a potential aid to prepare for financial troubles. It will give you stress-free during hard times. It can provide you with a fund to buy last minute supplies once things start to go bad.

Remember to always have a cash on hand. When things go wrong, there is a very real possibility that the banks may freeze your accounts. Its important to have cash that is accessible, either from a savings account or a cash box in your home. This can drift you over in an emergency until you can access money in your emergency fund.

Now is the perfect time to buy long-term supplies that you will need to survive in the future.

Start stockpiling food and long-term supplies. In any type of crisis, especially during a collapse, food, water and long-lasting consumables are essential and indispensable. You will likely see main supply chain shortages and problems, making these types of supplies one of your most important pre-collapse concerns.

Put together a supply of first-aid & medical supplies on hand. Once you create a kit, in the event of a collapse, you may not be able to shop for these supplies, sots important to have them on hand.

3. Secure your Home

To prepare for a dollar collapse is to choose your shelter type. A separate shelter is designed to survive from natural disasters or man-made weapons or attacks. During this kind of crisis, power systems may fail and robbers and scavengers may threaten your home. Take precautions to protect yourself and your home.

Another thing is to create two sources of electricity. One source could be solar. Hook it up to your home and then run the system underground. The second source might be an underground generator. You will use this in the event of a total loss of power. Keep your energy sources hidden underground to protect them.

Set an alarm system in your home. Home alert alarm systems are easy and inexpensive to install and maintain. Wireless security systems notify you if a trespasser is approaching your home. Hidden cameras allow you to see internal and exterior areas in your home where a trespasser may be present.

One of the prevalent risks youre going to face during dollar collapse is the threat posed by people. Learn everything you can about self-defense. When things go bad, you are going to need a way to protect yourself and those you love, your home.

Make sure that every member of the family is mindful of the situation. To prepare for a dollar collapse, you need have to guarantee that your whole family is ready with your preparations. This means informing them in honest terms what is about to happen and telling them what they should be doing. It is important that everyone takes the situation . Otherwise, they will not be mentally prepared in the event that collapse happens.

Each family member must be informed of the steps you have taken to prepare your finances, essential supplies, food, and shelter. Instruct them on doing the same.

Every member should understand the relationship between inflation and economic growth. Explain to them the adverse impact of a dollar collapse on your familys socio-economic life.

Consider including other family members, neighbors, or a community group in your preparations. Make sure that these are people who are reliable and will put to work for the benefit of the group.

5. Equip your Mind

Even more important than supplies, is survival knowledge and awareness. Knowledge is the key to your survival, and now is the time to get plenty. During any kind of crisis and survival, including a dollar collapse, knowledge is going to be your most powerful ally.

Read books on survivaland preparedness, then start collecting information on how to live a more independent lifestyle.

Do your own research and dont rely on government spun stories, or crafted in the media; you need to do your own research too. Check the reliability of the information you get to prepare for the collapse.

6. Expect a Financial Crisis

The major risk you are going to face in a dollar collapse is the downturn of your finances. It is important to be ready beforehand on what to do and what not to do on your financial systems.

Check and track the price of commercial commodities. Changes in the prices of commodities affect the countrys economy and the value of the US dollar. An increase in commodity prices is associated with an increase in inflation. Increased inflation correlates with economic growth. But, if commodity prices drop, inflation slows, which indicates an economic decline.

Take note of the financial markets. Big ups and downs in the markets are a red flag signaling a general decline.

Watch the oil prices. When oil prices increase, the Gross Domestic Product (GDP) goes up too. Remember that the fluctuation of oil prices has a macroeconomic impact. If it is increasing, then the value of goods and services also increases.

Everybody else could tell that a dollar collapse would be coming. A sudden dollar collapse would create global economic depression. It would allow the US government to come up with a currency system and a kind of economic strategies to avoid grave consequences.

Demand for Treasurys would drop, and interest rates would go up. US importprices would skyrocket, causing inflation.

Irregular public services like school system experience frequent strikes that shut them down, power issues and outages become more frequent.

Unemploymentwould worsen and more people will experience job loss or layoffs. More people are displaced and finding a job will become almost impossible.

An increase in criminal activity will definitely happen. People will become desperate to feed themselves and their families and more people will be more willing to cross the line into criminal activity to get what they need.

Lots of people will lose access to their healthcare when they lose their jobs. Healthcare appointments may become more difficult to schedule and it may take longer to get in to see a doctor because more people are getting sick and need care.

You can expect increased incidents of domestic violence as family relationships are strained and crack under the stress of poor living conditions.

A dollar collapse is a real threat with far-reaching repercussions. While it is inevitable, there are advance preparations that individuals and their families can make, at the very least, protect themselves from the event triggers. Stay informed on top of the global economy. You can be safe in a dollar collapse if you follow the ways that protect you from an economic crisis.

Continued here:

Dollar Collapse Predictions: What Will Happen When It Happens?

Great Civilizations Aren’t Murdered, They Commit Suicide …

Historian Arnold Toynbee in his 12-volume magnum opus A Study of Historywas an exploration of the rise and fall of 28 different civilizations. Toynbee concluded that great civilizations dont get murdered, rather, they kill themselves, and all the signs of a civilization collapse are here.

The Roman Empire, for example, was the victim of many ills including overexpansion, climatic change, environmental degradation, and poor leadership. But it was also brought to its knees when Rome was sacked by the Visigoths in 410 and the Vandals in 455.

Collapse is often quick and greatness provides no immunity. The Roman Empire covered 4.4 million sq km (1.9 million sq miles) in 390. Five years later, it had plummeted to 2 million sq km (770,000 sq miles). By 476, the empires reach was zero. BBC

Collapse can be defined as a rapid and enduring loss of population, identity and socio-economic complexity. Public services crumble and disorder ensues as the government loses control of its monopoly on violence. (Meaning people realize they are slaves, and no longer wish to be subjugated and punished at the whims of the ruling class/government, but seek their own liberty and self-ownership.)As people begin to realize that the political class (ruling class) is exceptionally wealthy as they slave away and half their wages are stolen to prop up those who exert power over them, societies tend to collapse. Government stays fat and happy when the slaves dont realize they are enslaved.

America Is Committing Suicide: Over The Past 12 Months, The U.S. National Debt Has Increased By 1.271 Trillion Dollars

Collapse expert and historian Joseph Tainter has proposed that societies eventuallycollapse under the weightof their own accumulated complexity and bureaucracy. Meaning the government becomes so burdensome and large that it can no longer maintain a monopoly on violence, as the oppressed begin to fight back. Societies are problem-solving collectives that grow in complexity in order to overcome new issues and government violence is not needed to solve problems. However, the returns from complexity eventually reach a point of diminishing returns. This happens when the government creates so many problems with their solutions that the solutions become problems themselves (a great example of this is the Ponzi scheme known as social security.) After this point, a collapse will eventually ensue and the U.S. is obviously on the cusp. More and more people awaken daily to the reality of what government has done to them; stealing their money, complete enslavement, indebting their unborn children, turning them into tax cattle, etc.

Paris Tax Revolts: The World Begins To Realize The Truth About Government

The collapse of our civilization is not inevitable, however, history suggests it is very likely. We now have the unique advantage of being able to learn from the wreckages of societies past, but instead of doing so and freeing mankind from government, many who are enslaved continue to push for shorter chains, more violence, control, domination, and theft by the ruling class not just of themselves, but of all others too. Collapseis imminent in our opinion, as those in control will not willingly give up their stranglehold over the tax cattle slaves.

If humanity could awaken to what the government really is (master that owns them) and take the blinders off put there by those who call themselves the government, we could all have a bright future. The government has painted themselves as some sort of religious fairy tale set out to save everyone and keep them safe. Once people realize the truth and claim ownership over themselves.

H/T [BBC]

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Great Civilizations Aren't Murdered, They Commit Suicide ...

Classic Maya collapse – Wikipedia

decline of classic Maya civilization

In archaeology, the classic Maya collapse is the decline of the Classic Maya civilization and the abandonment of Maya cities in the southern Maya lowlands of Mesoamerica between the 8th and 9thcenturies, at the end of the Classic Maya Period. The Preclassic Maya experienced a similar collapse in the 2nd century.[citation needed]

The Classic Period of Mesoamerican chronology is generally defined as the period from 250 to 900 CE, the last century of which is referred to as the Terminal Classic.[1] The Classic Maya collapse is one of the greatest unsolved mysteries in archaeology. Urban centers of the southern lowlands, among them Palenque, Copn, Tikal, and Calakmul, went into decline during the 8th and 9thcenturies and were abandoned shortly thereafter. Archaeologically, this decline is indicated by the cessation of monumental inscriptions[2] and the reduction of large-scale architectural construction at the primary urban centers of the Classic Period.[citation needed]

Although termed a collapse, it did not mark the end of the Maya civilization but rather a shift away from the Southern Lowlands as a power center; the Northern Yucatn in particular prospered afterwards, although with very different artistic and architectural styles, and with much less use of monumental hieroglyphic writing. In the Post-Classic Period following the collapse, the state of Chichn Itz built an empire that briefly united much of the Maya region,[2] and centers such as Mayapn and Uxmal flourished, as did the Highland states of the Kiche and Kaqchikel Maya. Independent Maya civilization continued until 1697 when the Spanish conquered Nojpetn, the last independent city-state. Millions of Maya people still inhabit the Yucatn peninsula today.[3]

Because parts of Maya civilization unambiguously continued, a number of scholars strongly dislike the term collapse.[4] Regarding the proposed collapse, E. W. Andrews IV went as far as to say, "in my belief no such thing happened."[5]

The Maya often recorded dates on monuments they built. Few dated monuments were being built circa 500 around ten per year in 514, for example. The number steadily increased to twenty per year by 672 and forty by around 750. After this, the number of dated monuments begins to falter relatively quickly, collapsing back to ten by 800 and to zero by 900. Likewise, recorded lists of kings complement this analysis. Altar Q at Copn shows a reign of kings from 426 to 763. One last king not recorded on Altar Q was Ukit Took, "Patron of Flint", who was probably a usurper. The dynasty is believed to have collapsed entirely shortly thereafter. In Quirigua, twenty miles north of Copn, the last king Jade Sky began his rule between 895 and 900, and throughout the Maya area all kingdoms similarly fell around that time.[6]

A third piece of evidence of the progression of Maya decline, gathered by Ann Corinne Freter, Nancy Gonlin, and David Webster, uses a technique called obsidian hydration. The technique allowed them to map the spread and growth of settlements in the Copn Valley and estimate their populations. Between 400 and 450, the population was estimated at a peak of twenty-eight thousand, between 750 and 800 larger than London at the time. Population then began to steadily decline. By 900 the population had fallen to fifteen thousand, and by 1200 the population was again less than 1000.[citation needed]

Over 80 different theories or variations of theories attempting to explain the Classic Maya collapse have been identified.[7] From climate change to deforestation to lack of action by Maya kings, there is no universally accepted collapse theory, although drought is gaining momentum as the leading explanation.[8]

The archaeological evidence of the Toltec intrusion into Seibal, Peten, suggests to some the theory of foreign invasion. The latest hypothesis states that the southern lowlands were invaded by a non-Maya group whose homelands were probably in the gulf coast lowlands. This invasion began in the 9thcentury and set off, within 100years, a group of events that destroyed the Classic Maya. It is believed that this invasion was somehow influenced by the Toltec people of central Mexico. However, most Mayanists do not believe that foreign invasion was the main cause of the Classic Maya collapse; they postulate that no military defeat can explain or be the cause of the protracted and complex Classic collapse process. Teotihuacan influence across the Maya region may have involved some form of military invasion; however, it is generally noted that significant Teotihuacan-Maya interactions date from at least the Early Classic period, well before the episodes of Late Classic collapse.[9]

The foreign invasion theory does not answer the question of where the inhabitants went. David Webster believed that the population should have increased because of the lack of elite power. Further, it is not understood why the governmental institutions were not remade following the revolts, which happened under similar circumstances in places like China. A study by anthropologist Elliot M. Abrams came to the conclusion that buildings, specifically in Copan, did not require an extensive amount of time and workers to construct.[10] However, this theory was developed during a period when the archaeological evidence showed that there were fewer Maya people than there are now known to have been.[11] Revolutions, peasant revolts, and social turmoil change circumstances, and are often followed by foreign wars, but they run their course. There are no documented revolutions that caused wholesale abandonment of entire regions.[citation needed]

It has been hypothesized that the decline of the Maya is related to the collapse of their intricate trade systems, especially those connected to the central Mexican city of Teotihuacn. Preceding improved knowledge of the chronology of Mesoamerica, Teotihuacan was believed to have fallen during 700750, forcing the "restructuring of economic relations throughout highland Mesoamerica and the Gulf Coast".[12] This remaking of relationships between civilizations would have then given the collapse of the Classic Maya a slightly later date. However, after knowing more about the events and the periods when they occurred, it is believed that the strongest Teotihuacan influence was during the 4th and 5thcenturies. In addition, the civilization of Teotihuacan started to lose its power, and maybe abandoned the city, during 600650. This differs greatly from the previous belief that Teotihuacano power decreased during 700750.[13] But since the new decline date of 600650 has been accepted, the Maya civilizations are now thought to have lived on and prospered "for another century and more"[14] than what was previously believed. Rather than the decline of Teotihuacan directly preceding the collapse of the Maya, their decline is now seen as contributing "to the 6th-century 'hiatus'".[14]

The disease theory is also a contender as a factor in the Classic Maya collapse. Widespread disease could explain some rapid depopulation, both directly through the spread of infection itself and indirectly as an inhibition to recovery over the long run. According to Dunn (1968) and Shimkin (1973), infectious diseases spread by parasites are common in tropical rainforest regions, such as the Maya lowlands. Shimkin specifically suggests that the Maya may have encountered endemic infections related to American trypanosomiasis, Ascaris, and some enteropathogens that cause acute diarrheal illness. Furthermore, some experts believe that, through development of their civilization (that is, development of agriculture and settlements), the Maya could have created a "disturbed environment", in which parasitic and pathogen-carrying insects often thrive.[15] Among the pathogens listed above, it is thought that those that cause the acute diarrheal illnesses would have been the most devastating to the Maya population, because such illness would have struck a victim at an early age, thereby hampering nutritional health and the natural growth and development of a child. This would have made them more susceptible to other diseases later in life, and would have been exacerbated by an increasing dependence on carbohydrate-rich crops.[16] Such ideas as this could explain the role of disease as at least a possible partial reason for the Classic Maya Collapse.[17]

The drought theory holds that rapid climate change in the form of severe drought (a megadrought) brought about the Classic Maya collapse. Paleoclimatologists have discovered abundant evidence that prolonged droughts hit the Yucatn Peninsula and Petn Basin areas during the Terminal Classic. Large droughts likely caused a decline in agricultural fertility due to regular seasonal drought drying up surface waters,[18] as well as causing thin tropical soils to erode when deprived of vegetation and forest cover.[19]

Climatic factors were first implicated in the collapse as early as 1931 by Mayanists Thomas Gann and J. E. S. Thompson.[20] In 1995, Hodell, Curtis and Brenner published a paleoclimate record from Lake Chichancanab on the Yucatn Peninsula that showed an intense, protracted drought occurred in the 9th century AD and coincided with the Classic Maya collapse.[21] In The Great Maya Droughts, Richardson Gill gathered and analyzed an array of climatic, historical, hydrologic, tree ring, volcanic, geologic, and archeological research, and suggested that a prolonged series of droughts likely caused the Classic Maya collapse.[22] The drought theory provides a comprehensive explanation, because non-environmental and cultural factors (excessive warfare, foreign invasion, peasant revolt, less trade, etc.) can all be explained by the effects of prolonged drought on Classic Maya civilization.[23]

According to Gill in The Great Maya Droughts:

[Studies of] Yucatecan lake sediment cores ... provide unambiguous evidence for a severe 200-year drought from AD800 to 1000 ... the most severe in the last 7,000years ... precisely at the time of the Maya Collapse.[24]

The role of drought in the collapse of Classic Maya civilisation has remained controversial, however, largely because the majority of paleoclimate records only provide qualitative data, for example whether conditions were simply "wetter" or "drier". The lack of quantitative data makes it difficult to predict how climatic changes would have affected human populations and the environment in which they lived. In 2012, a study attempted to quantify the drought using four detailed paleoclimate records of the drought event.[25] Semi-quantitative rainfall estimates were achieved by correlating oxygen isotopes measurements in carbonate cave formations (speleothems) with modern seasonal rainfall amounts recorded in the nearby city of Mrida, northern Yucatn, which were then extrapolated back to the time of the Terminal Classic Period. The authors suggest that modest rainfall reductions, amounting to only 25 to 40 percent of annual rainfall, may have been the tipping point to the Maya collapse.[26][27] Although this analysis referred to the estimated decrease in rainfall as "modest", subsequent studies suggest that the same data could represent a 20 to 65 percent decrease in rainfall.[28]

A study published in the journal Science in 2018 provides the most robust estimate of the magnitude of rainfall reduction to date.[29] Evans and co-authors developed a method to measure the different isotopes of water trapped in the hydrate mineral, gypsum, a mineral that forms in lakes of the Yucatn Peninsula during times of drought when the water level is lowered. When gypsum forms, water molecules are incorporated directly into its crystalline structure, and this water records the different isotopes that were present in the ancient lake water at the time of its formation.[30] The "fossil water" inside the crystals allowed Evans and his co-authors to analyze the properties of the lake water during each drought period.[31][32] Based on these measurements, the researchers found that annual precipitation decreased between 41 and 54 percent during the period of the Maya civilisation's collapse, with periods of up to 70 percent rainfall reduction during peak drought conditions, and that relative humidity declined by 2 to 7 percent compared to today. This quantitative climate data can be used to better predict how these drought conditions may have affected agriculture, including yields of the Maya's staple crops, such as maize.[30]

Critics of the drought theory question the spatial patters of drought and its relation to the timing of the degradation of Maya city-states. Archaeological research demonstrates that while many regions of the Maya Lowlands were indeed abandoned during the eighth to eleventh centuries CE, others regions only experienced minor disruption, or even flourished .[33][28] Although the spatial patterns of societal collapse are complex, population centers continued in many coastal regions and in the northern Yucatn Peninsula, including as Chichen Itza, Uxmal, and Coba, whereas most states in the central regions collapsed and landscapes were depopulated. The reasons for this spatial heterogeneity in societal disintegration are largely unknown, but researches have hypothesised that central regions may have been more affected because of a very deep water table (which would have exacerbated the effects of drought), or that the longevity of the northern regions was likely facilitated by access to the coast, and thus trade routes.[28]

Other critics of the megadrought theory, including David Webster, note that much of the evidence of drought comes from the northern Yucatn and not the southern part of the peninsula, where Classic Maya civilization flourished. Webster states that if water sources were to have dried up, then several city-states would have moved to other water sources. That Gill suggests that all water in the region would have dried up and destroyed Maya civilization is a stretch, according to Webster,[34] although Webster does not have a precise competing theory explaining the Classic Maya Collapse. Since publication, further records from the more southerly states have strengthened the argument of a synchronous drought occurring across the Yucatn Peninsula.[28]

Climatic changes are, with increasing frequency, found to be major drivers in the rise and fall of civilizations all over the world.[35] Professors Harvey Weiss of Yale University and Raymond S. Bradley of the University of Massachusetts have written, "Many lines of evidence now point to climate forcing as the primary agent in repeated social collapse."[36] In a separate publication, Weiss illustrates an emerging understanding of scientists:

Within the past five years new tools and new data for archaeologists, climatologists, and historians have brought us to the edge of a new era in the study of global and hemispheric climate change and its cultural impacts. The climate of the Holocene, previously assumed static, now displays a surprising dynamism, which has affected the agricultural bases of pre-industrial societies. The list of Holocene climate alterations and their socio-economic effects has rapidly become too complex for brief summary.[37]

A number of causal mechanisms for droughts in the Maya area have been proposed, but there is no consensus among researchers regarding a single causal mechanism. Instead, it is likely that multiple mechanisms were involved,[28] including solar variability,[38] shifts in the position of the Intertropical Convergence Zone,[39] changes in tropical cyclone frequency[25] and deforestation.

The Maya are often perceived as having lived in a rainforest, but technically, they lived in a seasonal desert without access to stable sources of drinking water.[40] The exceptional accomplishments of the Maya are even more remarkable because of their engineered response to the fundamental environmental difficulty of relying upon rainwater rather than permanent sources of water. "The Maya succeeded in creating a civilization in a seasonal desert by creating a system of water storage and management which was totally dependent on consistent rainfall."[41] The constant need for water kept the Maya on the edge of survival. "Given this precarious balance of wet and dry conditions, even a slight shift in the distribution of annual precipitation can have serious consequences."[18] Water and civilization were vitally connected in ancient Mesoamerica. Archaeologist and specialist in pre-industrial land and water usage practices Vernon Scarborough believes water management and access were critical to the development of Maya civilization.[42]

Some ecological theories of Maya decline focus on the worsening agricultural and resource conditions in the late Classic period. It was originally thought that the majority of Maya agriculture was dependent on a simple slash-and-burn system. Based on this method, the hypothesis of soil exhaustion was advanced by Orator F. Cook in 1921. Similar soil exhaustion assumptions are associated with erosion, intensive agricultural, and savanna grass competition.

More recent investigations have shown a complicated variety of intensive agricultural techniques utilized by the Maya, explaining the high population of the Classic Maya polities. Modern archaeologists now comprehend the sophisticated intensive and productive agricultural techniques of the ancient Maya, and several of the Maya agricultural methods have not yet been reproduced. Intensive agricultural methods were developed and utilized by all the Mesoamerican cultures to boost their food production and give them a competitive advantage over less skillful peoples.[43] These intensive agricultural methods included canals, terracing, raised fields, ridged fields, chinampas, the use of human feces as fertilizer, seasonal swamps or bajos, using muck from the bajos to create fertile fields, dikes, dams, irrigation, water reservoirs, several types of water storage systems, hydraulic systems, swamp reclamation, swidden systems, and other agricultural techniques that have not yet been fully understood.[44] Systemic ecological collapse is said to be evidenced by deforestation, siltation, and the decline of biological diversity.

In addition to mountainous terrain, Mesoamericans successfully exploited the very problematic tropical rainforest for 1,500years.[45] The agricultural techniques utilized by the Maya were entirely dependent upon ample supplies of water, lending credit to the drought theory of collapse. The Maya thrived in territory that would be uninhabitable to most peoples. Their success over two millennia in this environment was "amazing."[46]

Anthropologist Joseph Tainter wrote extensively about the collapse of the Southern Lowland Maya in his 1988 study The Collapse of Complex Societies. His theory about Maya collapse encompasses some of the above explanations, but focuses specifically on the development of and the declining marginal returns from the increasing social complexity of the competing Maya city-states.[47] Psychologist Julian Jaynes suggested that the collapse was due to a failure in the social control systems of religion and political authority, due to increasing socioeconomic complexity that overwhelmed the power of traditional rituals and the king's authority to compel obedience.[48]

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Classic Maya collapse - Wikipedia

Sick Bees Part 18F8: Colony Collapse Revisited …

Beekeeping Economics

The Truth Is The First CasualtyBack To RealityBee-pocalypseBeekeeping EconomicsChasing The BloomBiologically Productive LandThe DakotasCotton And Citrus In The SouthPutting Plant Protection Above PollinatorsNextUpdateAcknowledgementsReferences

Mark Twain, a keen observer of human nature, noted long ago that there is something fascinating about science. One gets such wholesale returns of conjecture out of such trifling investment of facts. And thus it is yet today with the release of any scientific facts relating to colony collapse, pesticides, or GMOs.

The publication of the most trivial research result has a similar effect as that of kicking a hivethere is a roar of response. The media, eager to sell sensationalism, and bloggers ready to spin the most trifling findings to fit their biases or agenda, clamor for the fearful public to do something to stop the horrendous decline of the honey bee before it causes the collapse of our entire food supply.

People work backwards from their values, filtering the facts according to their pre-existing beliefs [1]. This is certainly the case for the well-publicized elevated colony losses that weve been experiencing of late. They have all been wrapped under the moniker of CCD (for which the media have proclaimed a dozen times to have found the cause). And everyone wants to blame CCD on some egregious thing that we humans are doing.

There is nothing like a good image or compelling story to convince others to your point of view. Some of these images, like the innocent child eating a toxic ear of GMO corn on the cob, really stick in peoples minds, no matter the actual truth of the matter. And there is nothing like the resonance of a good story, which like childhood fables, become part of the popular mythology.

One of the most beguiling and persuasive stories is that of the unfortunate pear growers in Chinas Sichuan province, who are nowadays forced to pollinate their trees by hand due to all the bees being killed off by pesticidesan alarming example of how badly we can screw things up. Alas, this story also appears to be more fable than fact. Mark Grossman [2] explains that although pesticides are clearly an issue to bees in Sichuan, in reality, the hand pollination, as well as the demise of Sichuans bees, was due to economic reasons (I wont spoil his story). He explains:

Many articles about declining bee populations have a theme and tone that reminds me of those old sci-fi movies from the 1950s. Somehow, human technological tampering with nature is punished in some awful (and bizarre) way. You can almost read this theme between the lines of more than a few articles an echoed suggestion that some technological tinkering has angered Mother Nature And we are being punished by the disappearance of our bees. Then, domino-like, all of modern civilization will fall to ruinsThe inaccurate impression of the Sichuan Province as the scene of a bee extinction fits almost too neatly into an increasingly pervasive, though less than articulate, mythology the mythology of the bee apocalypse.

The fact is that colonies die for many reasons, exposure to toxins being one of them. The question is to what degree pesticides contribute to our current rate of winter losses. Lets start by putting pesticide exposure into perspective, following the truism that all beekeeping is local. Any effect of pesticides upon bee health would be expected to be correlated with the degree of actual exposure.

Bees placed in agricultural settings are typically exposed to dozens of pesticides, often at high levels. I was curious as to the degree of exposure for U.S. bees, compared to that of bees in other countries. Unfortunately, theres not much actual pesticide residue data from other than a few countries. But the FAO does keep data on the total amount of pesticides applied per hectare of cropland throughout the world, which Ive plotted out below (Fig. 1).

Figure 1. Pesticide use on croplands (arable land and permanent crops). Note that pesticide use in the U.S. is below the world norm. One would certainly expect pesticides to be more of a problem to pollinators in the countries to the left. I left out the highest figure, for Costa Rica, which due to its lucrative melon, tomato, potato, pineapple, and sugar plantations, applied 51 kg/ha in 2010over 20 times the rate used in the U.S.! Source of raw data [3].

Looking at the above chart, it is not surprising that pesticides are likely far more of a problem to bees (and beekeepers) in a number of other countries, including China, which applies six times as much pesticide per unit of farmland than does the U.S.

A popular myth is that of the imminent extinction of the honey bee (as compared to the more worrisome decline of native pollinators worldwide). As a managed form of livestock, the numbers of bee hives at any time is driven by economicsif beekeeping is profitable, hive numbers go up; if unprofitable, numbers go down. So how about the precipitous drop in hive numbers that weve all seen plotted out so graphically (Fig. 2)?

Figure 2. Weve all seen chilling graphs such as this, which suggest that honey bees will reach extinction before long. The actual data is accurate; it is the presentation that is distorted.

But as my buddy Pete Borst points out, its all about cherry-picking your dates. So I created a more complete graph (Fig. 3), using data from various sources [4] for a view that better reflects reality.

Figure 3. Estimated numbers of managed bee hives in the U.S. over the long terma picture that is a bit less grim. The peak was reached near the end of WWII, during which farmers were encouraged by the government to keep bees, and honey prices had skyrocketed due to the shortage of sugar [5]. Note that the decline of the bees began long before most of the alleged causes of CCD, driven largely by the lack of economic profitability due to low honey prices [6].

When we look at colony numbers over the long term, the imminent extinction of the honey bee doesnt seem to be as much of a concern, and the reasons for the ups and downs appear to be more related to economics than to other causes. The uptick at the end is likely due to todays wonderfully high prices for honey and almond pollination services.

Update Dec 2013: see end of article for discussion on hive numbers in the U.S.

Simply put, when its profitable to keep bees, the number of managed colonies goes up; when it is unprofitable, numbers go down. This is because the vast majority of colonies are kept by professional beekeepers in business to make a profit.

So any discussion of honey bee decline must take into account the profitability of commercial beekeeping. Of late, many of those beekeepers are hurting, their profit margins evaporating due to the need to keep replacing dinks and deadouts, and the lack of good summer forage. This makes any contribution to the problem by pesticides ever the more important. But it is devilishly difficult to tease out exactly which pesticides (or adjuvants) are actually causing the most problems (other than in the case of acute bee kills), and pesticide exposure is different from crop to crop, region to region, and country to country.

And although some campaigners think that banning one thing or another will solve all our problems, the reality is that the interaction between bee biology and agriculture is far more complex. We are still coming to terms with the environmental consequences of the Green Revolution, which revolutionized food production with modern day technology, thus allowing a great increase in the human population, and leading to todays chemically-dependent intensive farming. Such practices certainly produce more food, but at a severe cost to the environmentnotably the loss of pollinator-friendly habitat.

What confuses the issue is that the technologies of reduced-tillage herbicide-intense farming of vast monocultures of high-yielding cultivars, the massive increase in the acreage of soybeans, the move away from pasture and legume rotation, the adoption of genetically-engineered cultivars, the treatment of seeds with insecticides, and the introduction of new classes of insecticides came concurrently with the worldwide shift in colony health due to the varroa/virus complex and Nosema ceranae. The problem is to tease out which factors are actually most contributing to the increased colony morbidity and mortality that we observe today [7].

The answers dont come easy. Many beekeepers report thriving apiaries surrounded by corn and soy. Others suffer from major losses despite keeping their hives in wildlands far from agriculture. But it is common knowledge among commercial beekeepers that colonies go downhill after being placed in some agricultural areas.

This problem, as documented by recent research by Matthew Smart [8], it that the combination of poor nutrition and pesticide exposure associated with some croplands leads to poorer colony performance. A recent and excellent review by Sinnathamby [9], which analyzed data on crop yield, pollinator populations, and economic value of pollinators for the time period of 1945 through 2010, concluded that:

Results show a significant decline in the number of managed pollinators (specifically honey bees) in most regions of the US; on average, 42,000 colonies of managed pollinators were lost each year from 1945 through 2010. Crop yields increased significantly over the same period [by their calcs, 72% of total U.S. agricultural income for 2010 came from only four cropscorn, soybeans, alfalfa hay, and wheat, none of which are directly dependent upon pollinators]. Agricultural intensification and increased use of inorganic fertilizer and pesticides, which has increasingly replaced crop rotation for both nutrient and disease management and has led to increasing presence of monoculture-type cropping systems, were likely the primary pressures that led to pollinator decline. Recommendations are to enhance both managed and native pollinator management options at all scales, including improving policy decisions, increasing diversity of cropping systems, and enhancing management of natural habitat.

So lets look at this interaction between intensive agriculture and intensive commercial beekeeping.

The large migratory beekeepers typically chase paid pollinations and/or certain honeyflows, as well as look for safe places to park their hives when they arent generating income. Although some have suggested that the physical transportation of colonies is the problem, I dont buy itIve chased the bloom for years, and my bees clearly benefit from it. I suspect that the answer is that that bloom has changed in recent yearsless of it, less nutritious, more crowded with other beekeepers, and with more pesticides.

Many beekeepers see their colonies fall apart after going to certain croplands. It appears that the combination of poor nutrition coupled with the cocktail of pesticides is simply too much for the bees to handle. Any number of long-time migratory beekeepers have told me that you cant move bees from one pesticide exposure to the next and expect them to thrive in the long term. This is a sad indictment of our agricultural systemsomething clearly is amiss in a system that kills off its pollinatorsbut thats the way it is. The most successful beekeepers look for safe pasture upon which they can place their hives to recover from previous pesticide exposures. In recent years, those safe pastures are disappearing.

The large migratory beekeepers tend to seek open, biologically productive lands upon which to place their hives, since thats where their bees will generally find the best forage (Fig. 4).

Figure 4. Biologically productive lands of the U.S., as measured by the soil organic matter content [10]. The darker the color, the more productive the land.

This biologically productive land has historically been used for various forms of agriculture, including bee-friendly pastureland, but that is changingbetween 2011 and 2012, more than 398,000 acres of grasslands, forests and other lands were plowed, cleared or otherwise converted to cropland [11]. This means that that many acres will now be treated with additional pesticides. This correlation is easy to see if we look at another mapthat of the use of the insecticide most commonly detected in beebread: chlorpyrifos [12, 13](Fig. 5):

Figure 5. Note that pesticide exposure is part of the deal in those areas favored by commercial beekeepers, as demonstrated by the applications of the insecticide chlorpyrifosthe most commonly detected insecticide residue found in beebread. Chlorpyrifos is highly toxic to both adult bees and larvae, and has a 10-14 day residual half life on foliage. The column chart shows that the use of chlorpyrifos is slowly being phased out on corn and cotton, but increasing in soybeans.

So lets compare the intensity of pesticide application to the actual distribution of managed hives on the continent (Fig. 6).

Figure 6. The distribution of honey-producing hives during the summer. According to the NASS [14], over 60% of honey-producing hives spend the summer in only six of the fifty United States (by order): North Dakota, California, South Dakota, Florida, Montana, and Minnesota (with nearly a third in the Dakotas alone).

It appears from the above maps that commercial beekeepers (other than those being paid to pollinate crops) seek out summer pasture on biologically-productive lands away from the most intense pesticide exposure. The problem is that such wildlands are rapidly disappearing to the plow.

Commercial beekeepers are no dummies, and look for any fertile lands that are not completely planted to corn and soy or otherwise hit with pesticides. One of the last good places for good summer pasture was the Dakotasespecially North Dakota. The 1985 Farm Bill included the Conservation Reserve Program (CRP), established to pay private landowners (N.D. is 95% privately owned) to remove land from agricultural production for periods of 10-15 years. The program was initially conceived to increase commodity prices, but was continued largely and for its positive environmental benefits to soil and water quality, the conservation of wildlife habitat, and its offsetting of atmospheric carbon. No program in history has done more for landscape-level conservation of soil, water and wildlife habitat on farmland, while offering producers a significant and stable source of income. The program expired in September of this year; reauthorization or another possible extension is being debated by Congress as part of the larger Farm Bill reauthorization debate.

The North Dakota CRP lands created a beekeepers dream, so the big boys flocked there (Fig. 7). There was less pesticide risk, and abundant alfalfa and sweet clover which could produce large crops of high-value white honey [15].

Figure 7. Commercial beekeepers flocked to North Dakota after the adoption of the CRP program. In recent years, nearly a third of all honey-producing hives in the U.S. reside in the Dakotas during summer. Note how colony numbers have climbed since almond pollination and honey prices tripled in the early 2000s [16] (no USDA data was collected for the missing years).

Practical application: The only thing thats kept many commercial operations afloat in recent years is the income from almond pollination. The $4 billion almond industry is completely dependent upon beekeepers. That also means that the almond industry is indirectly supported by government payments to CRP landowners in the Dakotas, since the Dakota CRP lands provide free feed for the colonies that will be going to almonds the next year!

The value of the Midwestern CRP program to the almond industry should be taken into account. Many California beekeepers move their bees to Montana and Dakotas, since its more profitable for them to do so (provided they make a honey crop and dont get hit too hard with pesticides) than to leave them at home and feed them through our long dry. The forage provided by the CRP lands feeds a large proportion of the bees that later pollinate almondsa poor crop in the Dakotas often foreshadows a short supply of bees for the almonds.

But all is not well in Bee Paradise. CRP lands are being rapidly withdrawn from the program due high commodity prices that generate better returns than the CRP subsidies, and to the Farm Bill crop insurance that guarantees that even marginal land planted to corn will put money into the landowners pocket. The current Beekeepers Lament is that the disappearing CRP lands (Fig. 8) are leaving them no place to go for safe summer pasture.

Figure 8. Enrollment in the Conservation Reserve Program for the Prairie Potholes Region. The declining enrollment is hurting beekeepers and wildliferead K. McDonalds blog at [17]. Graph courtesy Eric Lindstrom of Ducks Unlimited [18]. Data source Farm Service Agency [19].

Another problem in the Dakotas is the pesticide use in sunflowers. There are over a million acres of sunflowers planted in the Dakotas, and since the flowers are often sprayed during bloom with chlorpyrifos, pyrethroids, and other nasties, colonies suffer. The North Dakota Department of Agriculture is aware of the problems that beekeepers are having in the State. Unfortunately, they have made it clear that protecting pollinators comes second to protecting landowners crops.

Beekeepers in more southerly areas often move bees to cotton or citrus for honey production. Neither crop is dependent upon pollination, so there is less incentive for the growers to protect bees. Cotton has traditionally been one of the most insecticide-intense crops, and since it produces extrafloral nectar, it can be dangerous to bees even when not actually in flower. Things improved with the eradication of the boll weevil and the adoption of Bt GMO cotton and insecticide-treated seed, the combination of which greatly reduced insecticide use. But this has now allowed lygus bugs (tarnished plant bugs), which were previously controlled as a collateral result of the spraying of broad-spectrum insecticides, to proliferate:

Historically during the flowering and boll maturation periods, tarnished plant bugs were inadvertently controlled by organochlorine, organophosphate, carbamate and pyrethroid insecticides targeting boll weevil and heliothines. The success of the boll weevil eradication programs and wide-scale adoption of Bt cotton eliminated many of those applications. In addition, the use of more selective insecticides that target Lepidopteran pests (i.e., spinosad, indoxacarb and emamectin benzoate) increased survival of tarnished plant bugs. Finally, tarnished plant bug resistance to a variety of insecticides (organophosphates, carbamates, pyrethroids) in the mid-south US has contributed to the elevated status of this insect pest [20] an informative read].

This is a good example of the complexity of pest control. When the cotton growers adopted eco-friendly practices to reduce insecticide applications, tarnished plant bugs were able move into cotton from nearby alfalfa, almonds, tomatoes, and safflower. A Mississippi beekeeper tells me that cotton may now be sprayed up to 14 times a season to control them and other pests. More sustainable IPM of lygus uses attractive strips of alfalfa to draw them away from cotton and to promote the growth of beneficial predators [21], and new lygus-specific GM cultivars are being developed [22].

Citrus is another highly attractive crop to bees and beekeepers. In recent years, excessive use of systemic Temik (aldicarb) made the nectar toxic to bees in some areas of Florida (its use is now disallowed). In order to protect bees, in some California citrus counties there are restrictions on the spraying of certain insecticides during the bloom period [23]. Currently, Florida citrus growers are getting hammered by citrus greening, transmitted by the Asian Citrus Psyllid, which is now also showing up in California. The economic impact to Florida has been over 6 billion dollars, and growers are desperately trying to save their orchards by applying systemic neonicotinoids to nonbearing trees, making areas of Florida officially off limit to bees. In bearing orchards, wide-spectrum insecticides are recommended, but not while bees are present. Unfortunately, the State does not appear to be willing to levy meaningful fines against those who ignore application regulations and manage to wipe out some poor beekeepers operation [24].

The citrus industry is now in a quandarythe only salvation on the horizon appears to be the adoption of orange trees genetically modified to specifically resist citrus greening disease. The question is whether the public will accept GM orange juice. An informative and sober discussion of this issue can be found at [25].

Lets face itno farmer is willingly going to allow a pest explosion to consume the crop that he worked so hard to grow. And many will also apply unnecessary pesticides out of habit or as risk insurance. No one wants to kill pollinators, but when push comes to shove, pollinators often lose. If a grower is renting pollination services, he has an incentive to minimize damage to the bees that hes paying for. But how about the grower of crops that dont require bees, but are nonetheless attractive to them, such as hay alfalfa, citrus, cotton, and soybeans?

The grower could argue that the bees (and the beekeeper) are freeloaders, profiting from the production of his land without his permission. It is understandable that if he is facing a sudden pest explosion that he may care less about some out-of-sight hives than in applying an insecticide to save his crop. The hard reality is that the best that beekeepers can do is to work with the growers and applicators to minimize pesticide problems, and to push the State Lead Agency to enforce compliance with label restrictions.

So long as farmers plant monocultures of particular crops, pests will always be an issue. The sole reliance upon synthetic pesticides is like playing whack-a-mole, with new pest problems constantly popping up. The more forward-looking agronomists are seeing that in order to move toward more sustainable practices, that we will need to approach agricultural production in the agro-ecological context [26], which includes integrated pest management as well as providing habitat and protection of beneficial insects and pollinators.

The honey bee/pesticide complex.

11/17/2013 update: We were discussing the breakdown of colony numbers on Bee-L. I thought that some of my calculations might be of interest:

In the 2007 Census of Agriculture, there were only 28,000 farms reporting having bees, with a total of just under 3 million hives. The average number of hives per reporting farm was 104.

For South Dakota, the average was 1716.

For North Dakota, 2257.

California 1073.

Montana 649

Texas appears to have more recreational beekeepers at an average of 100 hives.

For the first four states above (all with average hive numbers above 600), the total number of reporting beekeepers was 1802. So Im thinking that there are likely more than 600 commercial beekeepers managing large numbers of hives.

For the six states that account for over half the hives in the U.S., the total number of hives is 1,659,000; the total reporting beekeepers was 2856, for an average of 580 hives each. If we use the equation

T = R x Mr + C x Mc,

where T = total number of hives, R = # of recreational beekeepers, C = # of commercial guys, Mr = mean number of recreational hives (10), and Mc = mean number of hives for a commercial guy (2500), we can then solve for C, since we know that C + R = 2856.

The result is 669 commercial guys running 1,672,500 hives and 2790 recreational beekeepers running 27,900 hives.

The commercial guys would account for 23% of the beekeepers in those states.

The commercial guys would be running 98.5% of the hives.

If instead we set the average number of hives per recreational beekeeper at 5, and for the commercial guys at 3000, then we get a slightly different result:

549 commercial, and 2316 recreational. Commercials would make up 19% of all beekeepers, and run99.2% of the hives.

In either case, if we extrapolate to the entire U.S. population, there would be about 1000 1300 commercial beekeepers, running 99% of the hives. Obviously, these figures underestimate the total number of hives in the U.S. (accounting for only a bit over 3 million hives). But its likely safe to assume that the additional numbers are run mainly by recreational beekeepers with only a few hives.

That adjustment, plus an adjustment for the sideline beekeepers, would bring the percentage of commercial beekeepers down to a lower percentage.

Lets look at the figures for the whole country. If there were 1000 commercials averaging 3000 hives, that would be 3 million hives. Then add 125,000 recreationals averaging 5 hives each = 635,000 hives.

Total 3,625,000 hiveslikely very close to the ballpark figure if we count all recreational hives.

If those figures hold, that would mean that less than 1% of beekeepers managing 83% of the countrys hives.

>But I simply dont see how you can insist on an average of 5 hives per.

Heck Pete, you know that I never insist on anything. I was figuring that the sideliners with a few hundred hives would be run into the commercial group, bringing down that average somewhat.

As far as the 5-hive estimate, that was simply a number to plug into the equation as a possible example. But not arbitrary. Ive met a great number of recreational beekeepers. An average of 5 live colonies does not seem too far off the mark. And based upon the repeat sales of nucs and packages to them, a lot of time their average unfortunately approaches zero.

Ive been curious about the actual breakdown for some time. Obviously, the USDA figures greatly underestimate the total number of beekeepers (or at least those who have pine boxes on their property). The incredible increase in the membership of bee clubs in the past few years suggests that the number of recreational beekeepers is quite largebut even 2000 per state would only total 100,000.

About the only firm figure that we have is the number needed for almond pollinationabout 1.6M, few of which are supplied by recreational and out-of-state sideline beekeepers. And this does not count the commercial guys who forgo almond pollination.

So perhaps we should begin by trying to estimate total hive numbers. If we assume 100,000 recreationals at 5 hives, thats 500,000. Then add an arbitrary 1/5th that many as sideliners averaging 50 hivesthats 1 million. Then add say another million commercial hives not going to almonds. And finally the 1.6M in almonds. The total would be 4.1Mperhaps not far off the mark.

The breakdown would then be 63% commercial, 24% sideliner, 13% recreational.

Again, Id love to hear from anyone who can improve on these estimates.

As always, I appreciate the invaluable assistance of my research collaborator Peter Loring Borst.

[3] I used data from the following sources. The NASS changed their accounting of hive numbers in the mid 1980s, which I adjusted for. Unfortunately, the NASS website was down during the government shutdown, during which I wrote this piece, so I couldnt double check some numbers.

Morse, RA & R Nowogrodzki (1983)Trends in American Beekeeping, 1850-1981. ABJ May 1983.

Muth, MK, et al (2003) The fable of the bees revisited: causes and consequences of the U.S. honey program. The Journal of Law and Economics. http://www.personal.kent.edu/~cupton/Senior%20Seminar/Papers/bees.pdf

Hoff, FL and JK Phillips (1989) Honey: Background for 1990 Farm Legislation. USDA Staff Report No. AGES 89-43

NASSwith data after 1986 adjusted to account for the NASS no longer counting operations with fewer than five colonies after that date.

[4] After this article was published, James Fischer posted to Bee-L:

Honey was never the issue. Beeswax still had tactical value in WWII.

During World War II, lots of beeswax was needed as a stabilizer for RDX, anearly form of plastic explosive. When it was mixed with beeswax in theWoolworth Method, it was very stable, and it could be used in mines,torpedoes, and other munitions that might have to sit for months of exposureto the elements without degrading or randomly exploding for no goodreason. A petro-chemical replacement for the beeswax was developed, but itwas tricky to make and use, while beeswax was a known-reliable ingredient.After the war, RDX plants went back to making bakelite and other plastics,so the bulk beeswax market went kaput.

I have a thin hardbound book printed during the war instructing ladies inthe basics of beekeeping. I am sure it does not mention explosives at all,but it certainly did mention the war effort.

[5] Daberkow, S, et al (2009) U.S. Honey Markets: Recent Changes and Historical Perspective. ABJ Dec 2009.

[7] Matthew Smart, in prep, presented at the Monsanto Honey Bee Health Summit.

[8] Sinnathamby, S., Assefa, Y., Granger, A. M., Tabor, L. K., & Douglas-Mankin, K. R. (2013) Pollinator Decline: US Agro-Socio-Economic Impacts and Responses. Journal of Natural and Environmental Sciences, 4(1), 1-13. http://www.asciencejournal.net/asj/index.php/NES/article/view/430/pdf_111

[14] Erlandson, GW & JL Hauff (1981) Marketing North Dakota honey. Agricultural Economics Report No. 148

[15] vanEngelsdorp and Meixner (2010) op. cit.

[21] Baum, JA, et al (2012) Cotton plants expressing a hemipteran-active Bacillus thuringiensis crystal protein impact the development and survival of Lygus hesperus (Hemiptera: Miridae) nymphs. J Econ Entomol. 105(2):616-24.

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Sick Bees Part 18F8: Colony Collapse Revisited ...

Socio-Economic Collapse in the Congo: Causes and Solutions

by Marie Rose Mukeni Beya

The history of the Congo is long. Some historians think that Early Congo History began with waves of Bantu migrations moving into the Congo River basin from 2000 B.C. to 500 A.D. and then gradually started to expand Southward. The modern history of the Congo may be divided into four periods starting in 1885, after the Conference of Berlin divided Africa into separate states which were then ruled by Europeans imperial powers.

Colonization. King Leopold II of Belgium acquired control over the Congo territory in 1885. He named it the Congo Free State, and ruled it as his private property from 1877-1908. The Belgian parliament took over the colony from the king in 1908. The Belgian Congo achieved independence on June 30, 1960 under new leadership representatives of various political parties. Mr. Joseph Kasavubu of the Alliance des Bakongo (ABAKO) party was elected the President; Patrice-Emery Lumumba, the leader of the National Movement of the Congo or MNC, became prime minister, and Lieutenant Colonel Joseph Mobutu (Mobutu Sese Seko) was appointed as chief-of-staff of the new army, the National Army of the Congo (ANC), and became the also Secretary of State. The new nation was given the name Republic of Congo.

Adjustment and Crisis. The Congo spent the first half of the 1960s adjusting to its independence. In 1961, the Democratic Republic of Congo [DRC] was destabilized by army mutinies, unrests, riots, rebellions and the secession of the countrys richest region, Katanga, soon followed by a similar move in the Southeastern Kasai Province, which declared itself the Independent Mining State of South Kasai. The United Nations played a critical role in managing this crisis, which was further compounded by the trial of strength at the center between President Kasavubu and Prime Minister Lumumba, culminating in Lumumbas assassination at the hands of the Katangan secessionists in January 1961.

Dictatorship. In 1965 Mobutu, by then commander-in-chief of the army, seized control of the Congolese territory and declared himself the countrys president, head of the sole political party. In 1971 he renamed the country the Republic of Zaire. Once prosperous, the country markedly declined. Rampant corruption and abuse of the civilian population ensued. The need for change was widely understood; various political parties were organized, presidential elections were held and social justice programs initiated. The Sovereign National Conference in 1992 brought together more than two thousand representatives from various political parties and NGOs.

The Congo is Rich in Human and Natural Resources. It has the third largest population in Sub-Saharan Africa: 65.8 million. It has the second largest rain forest in the world. Precipitation is ample; it rains six to eight months of the year. Agriculture was profitable before the economy failed. It was 56.3 % of the GDP. Main cash crops include coffee, palm oil, rubber, cotton, sugar, tea and cocoa. But the revenue collected from the agricultural work and farming has greatly diminished in the past decade and is now only 15 % of the GDP. The DRC is rich in a variety of minerals: copper, cobalt, diamond, gold, zinc, oil, uranium, columbite/tantalite (coltan, an essential material for cell phones and other electronics) and other rare metals. Traditionally, one mining company in upper Katanga named Gecamines has dominated mining. Copper and cobalt accounted for 75% of the total export revenues, and about 25 % of the countrys GDP. The DRC was the worlds fourth-largest producer of industrial diamonds during the 1980s. Despite the abundance of resources, the DRC is one of the poorest countries in the world. The countrys official economy has collapsed in the last few decades due to hyperinflation, mismanagement and corruption, war, conflict and general instability, political crisis and economic dislocation. Moreover, the spread of HIV/AIDS has contributed to an overall deterioration. As the DRC is hit by the global economic downturn, exports (lumber, oil, diamonds and other ores in particular) have declined, whereas the high costs for imports of most basic needs remain unchanged. The consequence is an acute deterioration of the balance of trade and the collapse of foreign investments. The DRCs foreign debt stands at over $10 billion. M. R. M. B.

Decade of Conflict. In May 1997, Joseph Kabila, leader of a rebel movement supported by neighboring countries, challenged Mobutu and forced him to leave the country. Kabila seized control, declared himself president and renamed the country the Democratic Republic of Congo. After Kabila was assassinated in January, 2001, power was transferred to his son Joseph Kabila II by appointment. On December 18, 2005, for only the second time in 46 years the Congolese voted in a presidential election. Kabila won the elections against his opponent Bemba. This has sparked off riots and civil war.

Since the beginning of its independence in 1960 to date, instability has prevailed in the DRC. Although significant attempts have been made to stabilize the political and military establishments, the Congolese people still live in an all-pervasive state of insecurity. This has made a shambles of the economy and social conditions for the Congolese people. The poorest, as always, are the most affected.

Since 1998, an estimated 3.3 million people, mostly women, children and elderly have been killed as a result of armed conflicts. Another 2.3 million, according to NGOs reports in 2003, are homeless. The wars caused a drastic increase in the number of orphans, helping to create the gruesome phenomenon known as child soldiers.

The wars also exacerbated ethnic tensions over land and territory in Eastern Congo, posing a long-term challenge for the transition to peace. Because of domestic conflicts in the neighboring countries Rwanda, Burundi, Uganda, Sudan, Central Africa and Angola many civilian refugees and displaced soldiers fled to and infiltrated the DRC. Some insurgent groups attacking contiguous countries use the DRC as their base. This created regional tensions, and deteriorated the DRCs relationships with neighboring countries. In the Eastern DRC, violence erupted between Congolese and the newcomers. This conflict is exacerbated by ethnic tensions in Eastern Congo. In the Kivu Region, Congolese militia (MaiMai) still fights to protect their land.During the wars, the spread of HIV/AIDS has drastically increased, and this affects all aspects of the social, economic and political life. Many factors have contributed to the rapid spread of HIV/AIDS in the DRC, including poverty, lack of education, cultural norms, and war. Women and girls are raped and sexually exploited by the military in their own homes. Poverty drives some girls into prostitution, which increases their risk of becoming infected. Although some NGOs are focusing on the situation of women and girls, especially in the post conflict period, little has been done; women and girls remain defenseless. Recently international resources have become available to fight HIV/AIDS, but funds are not being used properly.

It is crucial to establish a new order. This means a new, uncorrupted and disciplined government, capable of improving the living conditions of the average Congolese. As a precondition the DRC must hold fair democratic elections. The future government must focus on education. Child education should become the number one priority. Be educated or perish. It is mandatory to shift the priorities from military security to peoples social welfare and development. Political corruption must be removed, and human rights violations must be dealt with, but everything depends on the eradication of poverty.

Commitment of all parties is needed: The DRC government, leaders of political movements and civil society, administrators, professionals, workers, in brief the Congolese citizenry on all levels. Men and women, adults as well as youth must be involved in the process of change. Local services, churches, NGOs, and international organizations must cooperate in support of political change.

The fight against poverty starts by properly managing available financial resources, and discouraging corruption. The available resources must be used properly. The annual budget must be voted upon, the budget plan respected, and the expenditures must be disciplined and limited. Auditing all economic activity on a regular basis should be mandatory.

Corruption occurs because the individuals cannot satisfy their basic needs (food, health care, clothing, education, employment, wages, etc.). In order to prevent corruption the government should proceed with the following steps:

The private sector and the national organizations must be encouraged to create more jobs.

Workers in both private and public sectors should get paid on a regular basis. The wage rates should be based on the work experience and educational background of the worker. The minimum wage must cover expenditures for basic needs.

Salaries must be readjusted and periodically augmented, regardless of boom-bust cycles.

Taxes must be used to rebuild infrastructures. People need to be educated to pay their taxes, which should be understood as constructive contributions to social welfare.

Taxes should be increased on natural resources and unearned incomes, and decreased on earned incomes from production.

Finally, the government should address the tragic violation of human rights. People must be taught their human rights, and trained apply these rights in the appropriate situations. For example, people need to report human rights violations, discrimination and injustice, and to defend themselves against sexual harassment. A strong, functional judicial system must be established. People must understand and believe that human rights abuses will not be tolerated in the Democratic Republic of the Congo.

Marie Rose Mukeni Beya, Ph.D. is a psychologist specializing in child development. Prior to coming to the US, she was head of the Psychology Dept. at the University of Kinshasa. She currently teaches Georgist economics at the Henry George School in New York. She is fluent in French, English, Swahili, Lingala, and Tshiluba.

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Socio-Economic Collapse in the Congo: Causes and Solutions

How the Collapse of Venezuela Really Happened – The …

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Today we welcome back our friend Jose, who wrote the awesome article about Christmas in Venezuela. It was so well-received that I invited him back to do a recurring series. In this piece, he begins telling us the story about how his country started the slide into a slow-motion collapse. Jose is a heck of a storyteller and he leaves us hanging at the end, but dont worry, Part 2 is coming soon! ~ Daisy

I believe it is the moment of an introduction for our readers to know how everything began. Venezuela is a wonderful country, with lots of peculiarities and attractions.

I love my country, and most of the people, even in these harsh times portraits wonderful qualities as a society that few countries in the world have.

This was once a beautiful land, relatively sparsely populated where food was plentiful, money was never scarce, and jobs were plentiful. The weather was very sunny, the days a little hot and people used to recline in their chairs in front of the door of their house and watch the neighbors go on arriving from a days work, and they greeted with courtesy. The neighborhoods were mostly safe. There was practically no monster known as inflation, bank loans were easily available and people often traveled to other countries without much concern for things like exchange controls, access to foreign currency, among other things.

There was no Internet, there were no so-called experimental drugs in the streets, access to a decent life was more or less possible if one had discipline and will, and in general, life was good. The cars used huge carburetors (some still use them), the fuel was abundant, and at the best prices on the planet, its inhabitants crossed the territory of almost one million km2 enjoying beautiful beaches, lonely plains, lush jungles and even the odd snow peak. The climate is optimal to live all year round with shorts, fresh clothes, and sandals.

It was very strange to hear of any deportation, and thousands of foreigners over the years came on vacation, and they stayed forever. Our beautiful women attract the attention of the whole world (and still do) and an endless line of ships left our ports, carrying their valuable black cargo to return loaded with that green paper that is accepted all over the world.

The country had an educational system of a very acceptable level. University education was free in most cases, and although the system required qualifications above the average for access to it, the demand was very high as the need for qualified professionals was such that, coming from a humble background, anyone with the ability, the desire to do it and enough enthusiasm could become a graduate and have a decent life, improving their socio-economic status and reaping the fruits of their effort and their work.

So much wealth of economic resources, and the inherent flaws of the lack of a solid, strong legal system, a sufficiently entrenched bases that could safeguard and safeguard the public patrimony, the lack of committed officials, with enough values and ethical and moral principles, It would lead to levels of corruption rarely seen in the world, with exceptions in some African republics. The main companies in the country adopted as a policy to place most of their financial resources in foreign banks. Investments in infrastructure were becoming smaller and smaller, and as the population grew and demanded services, this lack of investment became more palpable. The social policies that until then had been sufficient, with the corrupt elite that began to seize the country in those years were reduced to its minimum expression.These were the years of the second government period executed by populist (deceased) leader Carlos Andres Perez. His government was characterized by some of the biggest and darkest corrupted business of the decade. Getting in debt with the FMI was the straw that broke the camels back.

The fraudulent business in the government was: construction of schools, hospitals, highways, and roads, among a myriad of works that remained unfinished, without the population expressing disapproval. The political elite leaders were driving around luxury cars, escorted by heavily armed bodyguards, behaving like great lords. Most of them were soldiers who were linked at the time to the movement that gave the coup years ago. Crime grew steadily but was kept at bay by a police force that also fulfilled the role of containing subversive elements: people sympathetic to the concepts of the left.

Friends of the country supplied practically all industrialization needs, but technology transfer was a totally non-existent concept: the domination scheme was always maintained, and the few national companies that were able to carry out a true technological independence saw their functions paralyzed by government controls that would end up suffocating a large number of them. Despite the fact that, within the Latin American context, the professionals were among the most qualified and trained, the low wages meant that many of these professionals emigrated continuously, in a so-called brain drain that has been much more pronounced in recent years.

This situation led to a severe deterioration of socio-economic conditions, gradually but unswervingly causing the necessary scenario for citizens to slowly acquire the necessary awareness that a radical change was essential if they wanted improvements in their quality of life. A country with vast, enormous resources, but with inhabitants that increasingly felt the impact of inflation, a shortage that nobody could explain, and knowing this reality, seeing their political class isolated from the realities that the bulk of the population was suffering.

The whole thing was reaching a point of very high dissatisfaction. Student demonstrations, street disorders began to become more common. Corruption scandals came to light, but the guilty were seldom apprehended or put to rights. Most of the time they left fleeing to some country to enjoy the stolen riches.

This the people saw him repeat so much that he filled his already exhausted patience. On the date of February 27, 1989, after the announcement of economic measures (requested by the IMF for access to international financing) by the then President of the Republic, Carlos Andrez Perez, including an exacerbated increase in the price of gasoline, an wave of extremely violent protests, a violence like never before seen in the country, not even in the turbulent era of the guerrillas of the 60s and early 70s. The security forces were overwhelmed: poorly equipped and worse prepared to face disorders of this nature, the Government of that time had to resort. The looting was generalized in the largest cities in the country, causing terror in older citizens both nationalized and native, who paralyzed by surprise, never thought that such a situation could occur in a country so absurdly rich and prosperous.

It was not a coup attempt. It was a situation of widespread discontent, a call for attention to the Latin American style, in protest of the excesses publicly committed by the corrupt elite class of politicians who had been in power for more than 40 years through a pact known in the country as the Fixed Point Pact. Among the infinity of anecdotes that swarm among Venezuelans is known one in which an alcoholic, good-for-nothing president called Jaime Lusinchi (recently deceased in the Miami streets, like a vagabond) sent a Hercules C-130 from a military base on the island La Orchila, to the mainland in search of ONE chest of ice to cool the presidents whiskey.

Tell me about it

It is said that this situation was planned by the left, but in the absence of a more detailed investigation, for the moment it is difficult to confirm this theory.

I would like to tell you about my experience as a young man, in the town where I lived with my parents at the time.

The day the riots began, we began to see on TV what was happening in the big cities. At the beginning, I did not understand very well what it was about, but my parents told me that the economic situation had reached an extreme where people could not take it anymore, so they took to the streets, in the first instance to protest against the package of economic measures imposed by the IMF.

The protests, perhaps moderately organized from the beginning by some factions, evolved rapidly during the course of the day, becoming looting that began in the largest cities, and quickly spread throughout the country. But lets not get ahead

I was in school, in high school. The teachers, around 9 am, led by the director of the institute, were classroom by classroom, from the lower grades to the older ones, evacuating us all and giving the order to go directly to our homes. Of course, what we did was divide into groups, with each group going where it seemed best. Since I had friends in my old school, I thought it would be interesting to go there and spend some time hanging around with them. As teenagers, after all, our group went there, going through what was a commercial area, and we were surprised and even had a bit of fun to see that there was no vehicle traffic, so that we were soon walking through the center of the street, without realizing that a student demonstration had come out to protest before us, and we were following it without realizing it.

In Venezuela the uniform is used until finishing secondary school, so for the eyes of the authorities, we were part of the demonstration. When we walked, we were surprised to see many people on the streets: housewives, young men and women who would normally be working, including adults and the elderly. Some of them told us not to follow, and to go home. Suddenly, we saw in front of the boys of the school we were going to, who came in the opposite direction to us, in a huge group and mixed with people of all kinds: young, elders, ladies, grown-up angry men

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How the Collapse of Venezuela Really Happened - The ...

Collapse of UT and Capital banks A case of a collective national failure (Article) – Citifmonline

As an entrepreneur who appreciates the challenges to surmount in order to build flourishing businesses with positive ramifications for society, the collapse of UT and Capital Banks can only be seen as a reflection of our respective individual negative traits, deficient national character and the weak state institutions coupled with our ineffective educational system. The collapse of these banks obviously brings to fore critical issues that, as a nation we must be bold, truthful and openly discuss them.

Though, it did not surprise industry watchers, their demise evoke feelings of sadness and job insecurity while raising questions about the ability of Ghanaians to really manage our institutions.

It is sad because the collapse of these two indigenous banks has become a set back to the effort of promoting indigenous Ghanaians to take control of our economy by building strong local institutions. One would have expected to hear of progress being made by local banks rather than the demise of local banks.

It is also sad because of the job losses inherent in the demise especially in the light of the complexities of the labour market, the unavailability of jobs and the potential to increase unemployment levels even though we dont know our unemployment rates.

In spite of these sentiments, economic mismanagement, the failure of the central bank to assume its leadership role in our economic development, the proliferations of award schemes and our negative attitude as Ghanaians are all responsible for the current happenings. Invariably, these factors have combined to determine the kind of socio-economic environment that we currently find ourselves as a nation.

Economic Mismanagement

A critical look at economic development trends across the globe usually starts with emphasis on the agriculture sector, moves to manufacturing and lastly to the services sector. This development trend promotes the real sectors of an economy through the linkages between agriculture which provides the basic raw material for manufacturing and industrialization and the services sectors. The real sector of an economy will thus have the potential to create the numerous jobs for the people, provide commodities for the daily lives of the people, provide raw materials for the manufacturing firms, wealth for the people, a strong currency for the nation and eventually help extricate indigenes from poverty.

However, our country has adopted by default a reverse development model by placing emphasis on the services sector with no linkages to both the agricultural and manufacturing sectors. As a result, the business of selling and buying money has been very dominant in our economy. This is called the financecialisation of our economy. Everybody in Ghana now is either selling or buying money as a form of business. This explains why there are numerous people doing money lending, micro financing, savings and loans or commercial banking. While every money lender intends to be a micro finance, micro finance firms want to be savings and loans, saving and loans are looking at being commercial banks. These conversions are done without building enough capital base and a more robust corporate governance structures. Sadly, these finance houses are only funding the importation of rice, cooking oils and other consumables at the detriment of the most productive sectors of our economy such as agric and manufacturing.

A diversified economy on the other hand provides options for the people to do agriculture as a business, helps manufacturing to thrive and presents opportunity for banks to finance the productive sectors.

However, our political leaders have only paid mere lip services to our development. Over the years, Ghana has had several different development plans that have all sought to give us prosperity. All these plans have embraced the concepts of structural transformation, industrialization, investment, quality education and human capital development and the modernization of agriculture. The 7 year development of 1963-1970, Economic Recovery Program of 1984-1990, Structural Adjustment Program, Vision 2020 and the Better Ghana Agenda are just a few of the development plans. Yet, we are still engulfed in poverty.

Clearly, incompetence in managing our economy, lack of vision and direction by political leaders, weak state institutions, deep rooted and institutionalized bribery and corruption, ineffective educational system that produces timorous workforce with its resultant mismatch with industry have all teamed up to cause the collapse of these two banks.

Role of the Central Bank

The central bank of Ghana has been unable to assume its leadership role and importance as far as Ghanas economic development is concerned. They have not been proactive in their policy and supervisory functions in the financial sector in particular and the economy in general. The primary role of the central bank to implement policies that provide consistent growth and employment and the stability of the financial system has been ineffective over the years. Perhaps, the central bank is only noted for organizing monetary policy committee meetings. One even wonders if they have an idea as to the total number of money lenders and microfinance firms operating in the country. Weak corporate governance, Incompetent management and board, weak supervision, lack of integrity, corruption within the banking sector, unchecked prevailing high interest rate regime and the springing up of commercial banks are all to be blamed. It is hence not surprising that directors of a bank will borrow money without paying, whiles staff of some banks also operate micro finance within their respective branches. We all can imagine the insecurity and frustrations that would have been unleashed to the nation if depositors had lost their funds in the UT/Capital bank saga. And so, to the extent that the Central Bank was able to salvage depositors funds and restore confidence among depositors, they need to be commended.

Attitude of Ghanaians

Our negative individual attitudes as Ghanaians are also to be blamed. Individual corruptible practices in our institutions, employment based on favoritism, managerial incompetence, untruthfulness, vindictiveness, victimization, dirty corporate politicking, stealing of funds with collaborators in the business world, lack of leadership, amorous relationship between bosses and their subordinates have all been accepted as part of our normal lives, and have permeated into our corporate fabric. Doing the right things in Ghana makes one either a bad person, very difficult, arrogant or controversial. You dare not report a colleague or superior who is either corrupt or does something wrong. Whilst some banks promote staff not on merit but on the whims or affection of a superior person, some business heads also take money from clients before credit applications are processed. It is therefore not surprising that staff members through their actions and inactions have contributed to the demise of these banks. Sadly, the intellectuals in this country have through our incompetence and corruption proven education to be a useless venture. Instead of being managing directors, we are gradually becoming damaging directors.

Numerous Award Schemes

Numerous awards programes have been institutionalized in our country recently. There is an award scheme for almost everything in our country today. The basis upon which individuals and institutions have won various awards are in some cases questionable especially when every discerning Ghanaian is aware of the monetization of these awards. Besides, we are unable to assess the impact that these awards have had on our economy and society. In the light of their imminent collapse, these two banks in the past three years have won various awards in the banking sector. How did they win these awards? Awards schemes are essentially to reward excellence and to generate a more meaningful and a broader impact on companies and society. However, awards have been used as a money making venture and as such, mediocrity has taken over in most of the awards.

Clearly, the factors above present a feeling of great disappointment and failure whenever one critically looks at our national life. It looks as if we have been condemned to perpetual conditions of poverty, underdevelopment and retrogression exemplified by lack of vision and leadership, economic mismanagement, incompetent corporate leaders, ineffective and weak state institutions, negative attitude of the people, institutionalized bribery and corruption and lack of integrity. Indeed, one can only conclude that the collapse of these two banks is a collective national failure rather than an individual institutional lapse.

By: Kelvin Kwaku Yeboah

The writer is a former Banker and Entrepreneur.

Email: ykelvin19@yahoo.com

Excerpt from:

Collapse of UT and Capital banks A case of a collective national failure (Article) - Citifmonline

UNZA vice-chancellor lays down marker – Zambia Daily Mail

STEVEN MVULA, Lusaka UNIVERSITY of Zambia (UNZA) vice-chancellor Luke Mumba has urged students to save the institution of higher education from collapse by paying tuition and other fees.

And Professor Mumba says defaulting students will be allowed to sit for examinations but results will be withheld until they pay all the money they are owing the institution. Prof Mumba phoned Radio Phoenix on Tuesday during a programme dubbed Let The People Talk and corrected the perception that UNZA wanted to bar 8,000 students from writing examinations due to non-payment of fees. UNZA is bankrupt and it will collapse if students dont pay their obligations. We are not wholly funded by Government. Even the exams have a cost. There can be no exam without funding. We need money for stationery, to pay external examiners and support staff. We feel the heat as managers of this institution, he said. He said it is not the responsibility of UNZA to provide for the vulnerable because its mandate is to provide education and research. UNZA has 27,000 students and 19,000 have no problem at all. It is only 8,000 who have not paid and management will allow 4,900 students to write examinations but will withhold their results. The rest of the 8,000 are not on our data base, Prof Mumba said. Prof Mumba said returning students in their final years who will not clear will not graduate while returning students will not register without results. The collapse of a nation does not require use of atomic bombs. It only requires lowering the quality of education and the quality of graduates. UNZA must, therefore, live on. UNZA must continue to be the beacon and catalyst for socio-economic development, growth and knowledge generation, he said in a statement on Monday. Prof Mumba said for the university to avoid the perennial problem of admitting students who cannot pay fees for various reasons, this years admissions for first years are all provisional.

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UNZA vice-chancellor lays down marker - Zambia Daily Mail

What Makes a Terrorist? – The New York Review of Books

Lorenzo Meloni/Magnum Photos A suspected member of ISIS being taken into custody, Hamam al-Alil, Iraq, March 2017

In the wake of the terrorist attacks in and around Barcelona, clichs about radicalization are again making the rounds. For some, the twelve young members of the cell behind the Barcelona attacks, all men, were brainwashed; for others the blame falls on the town of Ripoll for becoming a terrorist breeding ground; for others yet its Islam as a whole that must be held accountable. For those who study radicalization and terrorism, all of these explanations fall short.

The greatest difficulty for our ability to understand and respond to terrorism and radicalization is linear thinking. Arguing that radicalization is caused by poverty because most modern jihadists come from marginalized neighborhoods is the same flawed logic as arguing that radicalization is caused by Islam because jihadists are all Muslims. Even combining Islam and marginalization as risk factors doesnt get us far, as only a fraction of a percentage of marginalized Muslims join jihadist groups. One can add many more factors and still end up with the same dilemma. Trying to find a root cause of radicalization is doomed from the start because it assumes a single, linear chain of causation.

Instead, it is better to think of radicalization as a phenomenon in which the whole is greater than the sum of its parts. Multiple factors interact in complex ways that cause radicalization to emerge in individual people and groups. As with other complex systems, such as ecosystems, removing one factor does not cause the system to collapse but instead to evolve in ways that may be positive or negative. In the jihadist movement there have been many small tipping points, including the USSR invasion of Afghanistan in 1979, the 2003 US invasion of Iraq, and the Syrian civil war of 2011each of which mobilized a new generation of fighters.

Profiles of jihadists have evolved over the years. Generally, revolutionary movements attract different kinds of recruits at different stages in their development. Many of the founders and leaders of the modern jihadist movement were educated members of the upper-middle or upper classes. Even many early foot soldiers were of above-average socio-economic status. Research on recruits to jihadist groups using data from the 1970s to 2010 found that members of these groups were six times more likely than the general population to have a bachelors degree. In the Middle East, engineering schools are often the most competitive programs and only take the best and brightest students; jihadists were seventeen times more likely to have an engineering degree.

New recruits to al-Qaeda spent months or even years at training camps, where they were vetted by leadership for their mental stability and ideological purity. This vetting even applied to relationships among leaders. When the billionaire Osama bin Laden started to expand his network, he was selective about the social caliber of people he chose to ally himself with. In 1999, when he met Abu Musab al-Zarqawi, the founder of what would become ISIS, he was suspicious of him not only for his extremist beliefs in apostatizing moderate Muslims, but also because of Zarqawis criminal past.

But criminal pasts would eventually become a standout feature of European jihadists venturing toward Syria and Iraq. According to one study of a small database of European jihadists, 57 percent of eventual Syria-bound jihadists had a petty or violent criminal past. Studies of Syria-bound foreign fighters from Norway and Germany found that they were overwhelmingly from lower socio-economic backgrounds. Many recent European radicalization hotspots are neighborhoods known for their high rates of unemployment and crime. ISIS propaganda geared toward Europeans alluded to these criminal pasts by offering jihad as a form of redemption, claiming that sometimes people with the worst pasts have the brightest futures.

The evidence that early al-Qaeda members were more educated, psychologically stable, and ideologically grounded is consistent with a group in the early period of a movements development, consisting of self-organizing networks operating clandestinely. Nascent decentralized groups rely on a reputation for success as the prime attractor for new adherents. Failing at an attack would be embarrassing and costly, and therefore only the best and brightest should be entrusted with such a duty.

On the other hand, ISIS operated like a traditional military in carrying on a local insurgency. It held and governed land in a way that al-Qaeda never did, and this loosened its stringency regarding recruits. The group sucked up fighters from areas under its control with promises of money and power, and appealed to the downtrodden of the Muslim diaspora to join their cause. Ideological purity, education, and law-abiding pasts took a back seat to the need for soldiers. If al-Qaeda, with its careful vetting and training, was the special forces of the jihadist movement, then ISIS was the infantry.

But as ISISs goals continued to evolve so too did their recruits. Few women from Europe ventured to Syria in the early days of the conflict, but by 2014 one in seven European foreign fighters were women, and by 2016 that number had jumped to one in three. Women didnt become more vulnerable to radicalization over that periodinstead, they were targeted for radicalization. Until 2014, ISISs local insurgency demanded mostly young men of fighting capacity and thus had little need for women. In June 2014, ISIS declared its so-called Caliphate and shifted its focus to state-building. In order to legitimize that state, the immigration of women, children, and families was explicitly sought after. Once the women arrived they began recruiting female friends, family members, and strangers over the Internet to pull in more lionesses, as they were often called, leading to the jump seen in 2016.

Since ISISs caliphate began collapsing in early 2016, they have been further expanding the use of other types of recruits. Women have planned to carry out attacks, new converts to Islam with no previous radical ties (known as clean men) have been alleged to be go-betweens connecting aspiring attackers with ISIS core members, lone actors (who have a greater instance of mental illness than group actors) have been inspired or directed to attack, people both younger and older than the norm have been recruited. The organization is exploiting all the resources at its disposal to maintain its strength in the eyes of its supporters.

These changes in patterns of recruitment show that profiles of recruits reveal more about changes in conflict dynamics than about the psychological vulnerabilities of certain demographics. Disaffected youth or marginalized communities may have been convenient targets for recruitment in recent circumstances, but long-term strategies for the prevention of radicalization must look beyond these current dynamics.

In addition, well-meaning policies that can be perceived as profiling run the risk of alienating the communities involved, as has been seen with the UKs Prevent strategy. But even when we focus on a narrow range of times and locations it is hard to detect a pattern. The core members of the Paris-Brussels terrorist network were mostly petty criminals from a marginalized neighborhood in Brussels. The Barcelona attackers were well-integrated youth from a culturally cohesive rural town. What they do have in common is that they were both groups of siblings and childhood friends.

As the structures of terrorist organizations evolve so too do their recruitment methods. In failed states, such as Syria, groups take on a hierarchical command-cadre structure, which resembles a formal military and allows the group to operate openly while providing security and governance in the area it controls. For some inhabitants of such areas, joining them may be more a matter of practicality than of conviction. In developed nations, such as in Europe, terrorist groups must operate clandestinely and thus take on a network structure. Networks are self-organizing, though they often contain charismatic leaders who pull together disparate individuals and small groups of friends.

Prior to the US invasion in 2001, al-Qaeda had begun to achieve a small-scale command-cadre structure in Afghanistan. It had a limited leadership structure and many hundreds of graduates from its training camps. The al-Qaeda leadership were hosted in Afghanistan by the Taliban and so they operated more like a venture capital firm, to which members of its various international networks would come to seek training, funds, and contacts.

European recruits of al-Qaeda in the 1990s and 2000s were often small groups of friends who would co-radicalize each other and then seek out opportunities to train in foreign camps. In a 2009 multi-nation study, researchers found that 75 percent of al-Qaeda members were recruited by a friend, 20 percent by a family member, and only 5 percent by a stranger. This recruitment pattern is what would be expected for a funding, plotting, and training structure like al-Qaeda that was waging a global jihad.

By contrast, the jihadist groups in Syria were waging a local insurgency and were setting up multiple command-cadre structures. In addition, by this time a series of prolific recruiters had gained a foothold in Europe. The hierarchical structures in Syria were able to work in tandem with their networks in Europe to create a mix of top-down and horizontal recruitment. For example, by 2015, nearly one in three Belgian foreign fighters in Syria were recruited by just two people: Khalid Zerkani and Fouad Belkacem. Some of those recruits then recruited their friends, which led to a social domino effect of radicalization.

Much radicalization is this phenomenon of friends recruiting friends. Preliminary findings on Western ISIS fighters indicate that very few recruits were self-radicalized; for the vast majority, radicalization was facilitated through social interaction. The Internet can facilitate this, but the existence of very specific geographical hotspots that produce the bulk of jihadists indicates that, when it comes to recruitment, offline factors are more important than the Internet. The picture emerging of the Barcelona attackers is more typical of radicalization in Europe. A charismatic leader, in the form of a radical imam, began to groom at least four sets of brothers and close friends, who then further co-radicalized one another.

Anybody can be exposed to new moral beliefs but when those beliefs become part of the day-to-day conversations of your friends, they have a greater chance of being acted upon. A common belief about those who join violent groups is that they are looking for brotherhood or sisterhood, and those groups certainly do offer that. But often it is in fact a pre-existing sense of belonging that is the risk factor. When radical ideas get introduced into tight-knit networks of friends, these groups act as echo chambers that reinforce those beliefs. The beliefs then act as a social glue that brings the friends closer to one another as a group, and distances the group as a whole from the rest of society.

As this process continues, the values become sacred and the identities of the individuals become fused with the group. Indeed, field studies by Artis Internationala consortium of researchers and practitioners studying violent conflict, of which I am a partof residents in two radicalization hotspots in Morocco show that it is the combination of holding a sacred value and being closely connected with your group of friends that motivates people to fight and die for their values. Strong identification with close comrades was a principal determinant of willingness to sacrifice oneself, a University of Oxford study found, among Libyan revolutionaries fighting the Qaddafi regime in 2011. My own studies on jihadist-group sympathizers in Paris and Barcelona show that, contrary to what many people believe, identification with Islam or the Muslim ummah (worldwide Muslim community) does not strongly predict willingness to fight and die for jihadist ideals. Instead, transcendent beliefs shared with close friends increased willingness to commit violence.

Most prevention policies aim to stop radicalization for every single person. This is a tall order and unlikely to succeed. A more evidence-based approach would be to try to mitigate group radicalization. Values and beliefs are socially embedded. Once the social setting changes, the beliefs may lose their grounding. For this reason, friends are not only crucial for the radicalization process but can be important in the prevention and de-radicalization process as well. Prevention, de-radicalization, and reintegration programs in Germany, Sweden, Denmark, and Sri Lanka have all used moderate friends and family members to pull a person away from violent extremism.

The existence of hotspots of radicalization can perhaps best be understood using epidemiology. When tracing back the origins of local European networks we often find a patient zero who is the first person to bring radical ideas into a community. This could be a recruiter, a radical imam as in the case of Barcelona, or any other person with the propensity and skills to spread extremist ideas. The rate of propagation of these ideas may partly be attributable to the sheer number of vulnerable individuals in those areas, though, again, its often friends and family members who act as catalysts between the ideas and new adherents. The rate of propagation may also be due to the bystander effect, whereby non-radical individuals do not report suspicious behaviors. This effect can be enhanced by rampant social disorganization in certain neighborhoods. If areas are already heavily afflicted by petty or organized crime, drug-dealing, or vandalism, then residents habituate to a level of nefarious behavior in their midst. This can be seen as a weakening of the community immune system, which in more organized areas would detect and expel the intruding ideas at an early stage.

Reducing social disorganization in certain communities may help increase their resistance to extremism. But bombarding radicalization hotspots with counter-radicalization programswhich often involves getting teachers, social workers, or community leaders to report on those they overseecan make residents of those areas feel suspect, which may do more harm than good. Economic development may not be effective either. Southern European countries, such as Spain and Italy, have worse economic integration of their immigrant populations than do northern European countries, such as Sweden, Denmark, Germany, or the UK. Yet the northern European countries have higher per capita radicalization rates than the southern countries. Economic development of certain communities should be welcomed but it may not be the most effective strategy for preventing young men like the well-integrated Barcelona attackers from radicalizing.

Working directly with the non-radical friends and family members of those on terrorist watch lists avoids the pitfalls of other approaches. In most cases, non-radical friends and family have no idea their loved ones are on watch lists, and if they do, dont know how to intervene. Programs that help facilitate this interaction could be successful.

Radicalization is a complex system that cannot be reduced to its individual factors. International conflicts, social networks, community, ideology, and individual vulnerabilities all combine to let radicalization emerge. Some of these factors may be more volatile, such as individual personalities, while others are more stable, such as social networks. But only a holistic view of this phenomenon can provide the understanding needed for designing policies to counter the pull of extremist groups.

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What Makes a Terrorist? - The New York Review of Books