After the disintegration of the Soviet Union and its disappearance from the political map of the world, the Russian central planning system was abolished. It was an inevitable and positive result of 70 years of brutal dictatorship. However, the complete destruction of a planning system was one of many mistakes made during the transition from a centralized system to a free market economy. Until 2008, the Russian government did not have a long-term plan or vision. Learning from the Soviet experience, other countries like France, Italy and Germany have used planning systems in their national policies with varying levels of success. Planning systems have also been developed in several emerging market countries. At the beginning of the 1990s, when I worked at Arthur Andersen, I participated in the analysis of Malaysia’s 2020 strategic plan. Seventeen years later, a program with the same horizon is being developed in Russia. Here is my take on it.
Belinda Cooper: Obama in Berlin
BERLIN, GERMANY—Barack Obama has come and gone, but excitement remains, along with sober analysis. Obama was again on the front of every newspaper the day after his appearance, and most of the coverage and photos were flattering. (In a recent New York Times op-ed, Susan Neiman refers to Spiegel Magazine’s sardonic cover, but Spiegel is always sardonic and condescending, about everyone; it’s hardly representative.)
The day of the speech, people were already making their way to the Siegessäule hours before Obama was scheduled to take the stage. The crowd was international and ethnically mixed, and largely young. The mood was not so much passionate as curious. One longtime American resident of Berlin called it an anti-Bush demonstration of a sort (though with many people waving American flags)
I asked an Eritrean friend I met on the way, who’s lived in Berlin for years and is now a German citizen, what people were saying about Obama. He told me everyone likes him, but they don’t believe Americans will actually elect him. That is, indeed, a concern; many people have asked me whether I really think he has a chance.
Obama’s speech touched on many of the points Germans, especially younger people, are most interested in, but he also alluded to some issues they are not excited about. Back where I was standing, there was little applause for his call for more German troops in Afghanistan or his praise for NATO. To me, his rhetoric about the Cold War and the airlift came across as clichéd and somewhat condescending, but not everyone saw it that way; the airlift still means something to Berliners, particularly older ones. He received a great deal of applause when he spoke of Darfur, several times, and Zimbabwe; of ending the Iraq war and eliminating nuclear weapons; of climate and the environment; and of breaking down barriers between races and religions.
Still, Obama’s rhetoric is American, for example in its tendency towards what one commentator called “light and darkness metaphors,” and sounds strange to German ears. One young woman I spoke to afterwards found the speech superficial (“bullshit” was one of her adjectives). And others have made the same arguments as Roger Cohen in the New York Times—that it was abstract and feel-good.
The staging of an American campaign is equally alien. In a poll by the Frankfurter Allgemeine Zeitung on the day of his appearance, a majority of respondents nationally felt either that too much fuss was being made, that Obama was using Berlin for his campaign, or that European expectations of him were too high. Most people seemed quite aware that the speech was, in fact, aimed more at the U.S. then at Germany. But many commentators, as well as listeners, found substance in the speech nevertheless. Obama’s admission that the U.S. has made mistakes, for example, and his acknowledgment that many Europeans see the U.S. as a cause of the world’s problems, meant a great deal.
Álvaro Baltodano: Nicaragua Surges On Free Trade
Nicaragua has entered a period of economic liberalization and integration to global markets in order to stimulate and develop its national economy. Currently, we have signed free trade agreements with the United States, Dominican Republic and Central America (DR-CAFTA), Mexico and Taiwan. Nicaragua is also in the process of negotiating a free trade agreement with the European Union, and is discussing preferential market access with Venezuela, Bolivia, Argentina and Brazil, in order to become a key export platform to the markets of North and South America.
Belinda Cooper: Letter from Berlin
Barack Obama will speak to an anticipated crowd of 100,000 people in Berlin tonight, and the city is brimming with anticipation. Pretty much every newspaper and magazine has featured him on its cover or front page. A few weeks ago, the story was where he would speak. At the Brandenburg Gate? Angela Merkel (Christian Democrat) opposed a foreign politician making a campaign speech at such a historic site; her foreign minister, Frank-Walter Steinmeier (Social Democrat) didn’t see the problem; and Berlin’s mayor, Klaus Wowereit (Social Democrat), seemed to be looking forward from the start to a photo op with Obama anywhere in the city. But the Obama campaign, loath to create friction, decided on a different location: the Siegessäule or Victory Column. Not that the Siegessäule doesn’t have its own issues: as many have pointed out, it’s a monument to Prussian victories over Denmark, Austria and France, and the Nazis liked it too; they even made it taller. Berlin’s like that, though—there’s hardly a spot in the city without some problematic history, be it Prussian, Nazi or Communist. It’s sometimes hard to remember, with surveys showing a majority of Germans opposing Bundeswehr participation in Afghanistan, but Germans weren’t always pacifists…
Mira Kamdar: The Most Corrupt Democracy
As India’s parliament debates whether or not to approve the U.S.-India Civil Nuclear Cooperation Agreement today, more than the fate of the deal itself is at stake. The fate of India’s government, a coalition of multiple political parties headed by the Congress Party, and the political future of the country hangs in the balance. One thing is not in doubt: India may well be the most openly corrupt democracy in the world.
Michele Wucker: Citizenship and the Veil
In the uproar over France’s denial of Faiza Mabchour’s citizenship application over her wearing of the niqab, many commentators have found it easy to condemn France for being racist/religionist/whatever-ist you want to call it. But the reality is that people are uncomfortable with people who look different—and societies adopt clothing as a political tool for many different purposes and in many different contexts.
In a delicious irony, as American pundits were wringing their hands over France and the veil, a small Illinois town passed a law banning baggy pants that reveal underwear—a case of preventing (mainly) men from revealing too much, as opposed to punishing a woman for revealing too little.
Many Westerners—and yes, even we New Yorkers who believe ourselves to be sophisticated and tolerant—would be deeply uncomfortable when faced with the prospect of more and more people on the street whose faces we cannot see. It is folly to ignore that visceral reaction.
How can France address the deep-seated fears about the niqab? The answer turns out to be the same as the answer to how it can protect Muslim women’s rights and French values.
David A. Andelman: The Dalai Lama vs. Palestine?
SOUTHAMPTON, NY—For many American Jews there is the apparent moral conundrum—how do you support Tibet (the Dalai Lama) over China without supporting Palestine over Israel? Simple. In this equation, Israel is the underdog—at least when it comes up against the combined might of the Arab world and the (real or imagined) nuclear power of Iran just around the corner.
I’m not saying that this is an equation that I can even entertain. Still, this was the nature of part of the discussion around the dinner table Saturday night at Louise MacBain’s place in Southampton.
Louise, who three years ago launched the extraordinary Global Creative Leadership Summit and called together a few of us for the weekend to brainstorm this Fall’s session, invited a couple of high-powered investment types to join us for dinner on Saturday. Both, with their wives, happen to
be committed Zionists, though in deference to the clearly off-the-record nature of the evening, I’ll refrain from identifying them.
The context is the fact that Louise, who’s an extraordinary entrepreneur in her own right with her stable of art publications including Art+Auction and the landmark ArtInfo.com, has also taken up the cause of China and its efforts to reach some form of modus vivendi with the Dalai Lama and return peace to Tibet. Recently, she returned from a round of shuttle diplomacy between Lhasa and Beijing. “I want only what is best for the Dalai Lama and his spiritual foreigners,” she says most diplomatically, “and to embrace the reasonable demands of China as well.”
She’s also quite committed to bringing all sides together in Palestine and Israel as well, along with close friends James Wolfensohn and Mortimer Zuckerman. But more about them in a moment.
Above all, Louise believes in communication—all sides talking to each other, removing barriers to free movement of people, ideas and goods (so she’s a big free-trade and Doha advocate as well).
Inevitably, the talk on Saturday turned to Israel and Palestine. But only after we had thoroughly explored Louise’s recent efforts in China and Tibet where she travelled to gain support for an international fund administered by her Foundation for the cultural preservation of Tibet—a fund that would complement China’s already existing $70 million investment into the preservation of the region’s cultural heritage. She believes fervently that the Dalai Lama and China should sit down and talk, work out their differences and move on to peace and development for the benefit of the Tibet Autonomous Region. She is persuaded that the Dalai Lama and his supporters have been somewhat outrageous in their demands—which appear to amount to a takeover of a quarter of the territory of China itself, or “Greater Tibet” as it is often put.
Her guests were as reluctant to spring to China’s defense as they clearly were to spring to the defense of the Palestinians.
Joshua Miller: Capitulation to Terror is Shortsighted
At an international boundary between two countries that do not have diplomatic relations, recently fought a war and have a bitter history of violence, one might expect to find fortified gun emplacements, concertina wire, and the deep diesel rumble of idling tanks. But the Rosh Hanikra border crossing that sits at the juncture of Israel, Lebanon and the Mediterranean Sea is an exquisite, peaceful corner of the Middle East. Set atop chalk cliffs overlooking the sea, and situated next to a vast array of grottoes formed by millennia of water lapping at the rocks, Rosh Hanikra (Hebrew for head of the grottoes) is a national park, a popular tourist attraction, and is even occasionally a location chosen by Israeli couples for their weddings. Sitting at the local restaurant, looking out at the Mediterranean, it’s almost possible to forget that one is at a military site.
A line of buoys in the sea, marking the official border between Israel and Lebanon, stretches out from the shoreline to the horizon. In the distance, one can often see Israel Defense Forces (IDF) naval gunships assiduously patrolling the demarcation line.
But in the early morning hours of April 22, 1979, there was only one ship moving along this coast, a small rubber skiff that had left from Tyre, Lebanon and was headed for Nahariya—an Israeli city of 50,000 people four miles south of Rosh Hanikra. After pulling the boat up on the beach in Nahariya, its four occupants, PLO terrorists led my a young man named Samir Kuntar, killed a policeman who had come upon them. They entered a nearby apartment building, waking a young Israeli couple, Danny and Smadar Haran, and their two children. Hearing gunshots, Danny helped Smadar and their two-year-old daughter, Yael, into a crawlspace in their bedroom. He was headed for the door with their other daughter, four-year-old Einat, when the terrorists burst into the Haran’s apartment.
Suspecting there were more than two people in the apartment, the terrorists spent a few minutes searching for the other occupants. Trying to keep her two-year-old from making a noise and giving away their position, Smadar kept her hand over her daughter’s mouth, accidentally suffocating her to death.
In a Washington Post op-ed, Smadar described what happened next:
“…the terrorists took Danny and Einat down to the beach. There, according to eyewitnesses, one of them shot Danny in front of Einat so that his death would be the last sight she would ever see. Then he smashed my little girl’s skull in against a rock with his rifle butt. That terrorist was Samir Kuntar.”
Last week, on June 29, the Israeli cabinet, led by Prime Minister Ehud Olmert, agreed to release Samir Kuntar (who is currently serving four consecutive life sentences in an Israeli prison), four other Lebanese nationals, and the remains of Hezbollah fighters killed in the 2006 Lebanon War in return for the bodies of two Israeli soldiers, Ehud “Udi” Goldwasser and Eldad Regev. For Israel, this was a decision with far-reaching implications. Capitulation to terrorist demands has dire consequences.
Alon Ben-Meir: Israel’s Peace Offensive
Israel’s recent peace offensive may have been motivated in part by personal or domestic politics, but the driving force to negotiate is part and parcel of a much larger plan. As the dynamics in the Middle East shift in response to Iraq war backlash, and as Iran develops its nuclear program, Israel has finally conceded that peace with Syria is the key to rapprochement with the rest of the Arab world, including the Palestinians. If comprehensive peace with Syria can be reached, Israel will be better poised to successfully negotiate with Lebanon and the Palestinian Authority, and will be better equipped to deal with Hezbollah and Hamas—all which will become extremely important as Israel gears up to face Iran.
Israel has planed to engage Syria in peace talks for more than a year. I have been privy to some of the indirect talks between the two sides, and know first-hand that Israel would have commenced these talks much earlier had it not been for objections from the Bush administration.
David A. Andelman: Swiss Bear Arms… At a Medieval Wedding
FRIBOURG, SWITZERLAND—This weekend, Cyrill and Maureen got married. It was a three-day affair, with medieval theme, each of the more than 400 guests wearing medieval garb, eating and drinking and carousing much as Swiss knights and their ladies (with a few monks and William Tells thrown in) might have done seven or eight centuries ago.
But the ceremony and all that surrounded it was much more than that—a tribute to how far Switzerland and China, indeed Europe and Asia, have come in the days since Marco Polo first returned from the Orient in the year 1295 and brought back word of a mighty and mysterious kingdom on the other side of the world. Cyrill Eltschinger, it seems, is Swiss to the tips of his gauntlets, while Maureen Yeo is Chinese—tracing her lineage back five centuries or more.
Cyrill and I first met last year after our books, Cyrill’s Source Code China: The New Global Hub of IT (Information Technology) Outsourcing and my own, A Shattered Peace: Versailles 1919 and the Price We Pay Today were both published, two weeks apart, by Wiley, and we were invited to speak at the Outource World convention at New York’s Javits Center. I was then at Forbes, and Cyrill was and remains CEO of IT United, one of the leading information technology companies in China, and is based in Beijing where he first met Maureen three years ago.
Some months after Cyrill and I had met at the Javits Center, having moved to World Policy Journal as editor, I received an e-mailed invitation to come to Fribourg and Neuchatel in June for their wedding. The only catch? We had to come garbed. Chain mail and a Swiss cavalier’s cap for me, two elegant gowns for my lady (aka wife Pamela).
Fribourg itself, beyond being the hometown of Cyrill, was a totally appropriate spot for this unusual ceremony. It is a bilingual city divided down the middle by an invisible, but quite real line—the northern half lies in the German-speaking portion of Switzerland, the southern half in the French portion. France and Germany united again in the heart of Europe.