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    A Fictional Debate Between a General and a Journalist

    Washington Post reporter Brandon Dyson emerges from the shadows in a street near Foggy Bottom after he recognizes General Edwin Moran leaving the State Department building and walking toward his car. Brandishing a microphone, Dyson rushes up to intercept him.

    FADE IN:

    EXT. Georgetown Street — Late Afternoon

    DYSON: General, if you could spare a minute, I’d like to get your take on how the Ukraine war’s going. Are you satisfied we’re achieving our objectives?

    MORAN: You’re a reporter. Read the papers.

    DYSON: I write for the papers, so I don’t necessarily trust everything I read. I’d like to get it from the horse’s mouth.

    MORAN: Look, you’re asking the wrong stallion. Address your questions to the politicians. The military’s job is to obey orders, not give interviews. Our opinion means nothing.

    DYSON: I’ve been talking to the politicians. I know what they’re saying, which is why I’d like to hear your thoughts. I’m interested in the military perspective, the feelings you guys have about your mission.

    MORAN: We don’t have feelings. We have orders. Orders lead to actions. Feelings come later.

    DYSON: OK, but everyone is acting like we’re engaged in a war. And you know much more about war than any politician.

    MORAN: Officially we’re at peace. So I have nothing to say.

    DYSON: We’re definitely in a major economic war that sits on top of a local shooting war. That’s a unique situation. The media are whipping the public into a frenzy of war fever. Do you feel you’re being sidelined?

    MORAN: Do I feel…? I told you, don’t ask me about my feelings.

    DYSON: Well, you and your colleagues must be wondering about what this frenzy means. You can see everybody in the media itching to take on the Russkis. Anyone who thinks a war isn’t necessary can be called a traitor. But at the same time, the official message is that we’re not going to battle.

    MORAN: We’re ready for any action that’s required. That’s all. For the moment, it’s the State Department’s war, not ours. Their weapons are sanctions and they have quite an arsenal.

    DYSON: So you admit that applying sanctions is the equivalent of war?

    MORAN: Sanctions actually kill people more surely and on a more massive scale than any non-nuclear weapons.

    DYSON: That’s the point. Critics point out that they target civilians and disrupt the survivors’ lives, people who have nothing to do with politics or combat, whereas war is supposed to be about opposing armies. Are you saying you consider sanctions a legitimate way to conduct war?

    MORAN: Well, if you really want my opinion, I’ll tell you. Sanctions make a mockery of the idea of war, which is always has been and should always be considered a noble pursuit. Politicians have no idea what true war is all about. They say they have a strategy, but they have no sense of operational goals.

    DYSON: If you admit they have a strategy, how would you assess their tactics?

    MORAN: We don’t try. All we can do is hope they come out victorious.

    DYSON: Have they given you military people any idea of what victory would look like?

    MORAN: From what I can tell, it’s bringing down the evildoer, Vladimir Putin.

    DYSON: So, it’s regime change?

    MORAN: That’s what it looks like.

    DYSON: Blinken absolutely denied that last week on “Face the Nation.” But he does say it’s about provoking the devastation of the Russian economy.

    MORAN: Pretty much the same thing.

    DYSON: The French minister Bruno Le Maire said something similar, about provoking the total collapse of the Russian economy. It’s beginning to sound like “Carthago delenda est.”

    MORAN: Is that French?

    DYSON: No, Latin. You know, Cato.

    MORAN: Are you telling me the French minister works for the Cato Institute here in DC?

    DYSON: No, it’s what Cato the Elder said during one of the Punic wars.

    MORAN: It’s disrespectful to call any of our wars puny, even if we have to admit there were a few failures.

    DYSON: I’m talking about ancient Roman history. Cato was a Roman politician who preached the destruction of Carthage around 200 BC. He ended all his speeches at the Senate with the catchphrase, “Carthage must be destroyed.” You must have studied the Punic wars? The Romans went ahead and definitively wiped Carthage off the map in 146 BC, killing or enslaving every one of its citizens.

    MORAN: Oh, yeah. I remember hearing about that in my history classes at West Point. That was a time when politicians knew how to finish off the quarrels they started.

    DYSON: So, is that what we’re talking about now? Destroying Russia?

    MORAN: Don’t see how that can work without a nuclear attack. But if they can bring down the regime with sanctions, more power to ‘em. After the habitual “mission accomplished” moment they always love to stage, they’ll probably call us in to clean up the mess. That generally doesn’t go very well, but we’ll make the best of it.

    DYSON: As you always do, I guess. Well, thanks for the valuable insight. I’m very grateful.

    MORAN: You’re not going to quote me on any of this? You do and I’ll make sure every officer down to the rank of lieutenant knows your name. You’ll never get another story from the Pentagon.

    DYSON: Hey, I was only interested in your ideas. And, don’t worry, I won’t take any direct quotes or mention your name. Trust me, I work for The Washington Post.

    Disclaimer: This fictional dialogue exists for entertainment purposes only. The ideas expressed in it are totally imaginary. Its eventual inclusion in any Hollywood movie or television script will be subject to negotiating authoring rights with Fair Observer. That is nevertheless highly unlikely for the simple reason that some of the reflections in the dialogue appear to contradict the widely held beliefs spread in the propaganda that now dominates both the news media and the entertainment industry.

    The views expressed in this article are the author’s own and do not necessarily reflect Fair Observer’s editorial policy. More

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    German Far-Right Conspiracy Theorists Step Up Attempts to Undermine Schools

    Even before the COVID-19 pandemic, independent schools in Germany, particularly the Waldorf (also known as Steiner) schools attracted far-right conspiracy theorists and anti-vaxxers. Over the past two years, reported incidents of COVID-19 skepticism coupled with far-right conspiracy theories at Waldorf schools appear to be on the increase. Some COVID-19 deniers even attempted to establish their own schools in order to withdraw their children from government influence. Which far-right groups have been the driving force behind these developments, and what have the authorities done about it?

    Gravitational Pull to the Right

    As of February 2020, across Germany, approximately 90,000 pupils attended the 254 state-recognized Waldorf schools, whose curricula originate in an anthroposophical worldview. According to the Anthroposophical Society, the Waldorf pedagogy system, which was developed by the Austrian spiritualist Rudolf Steiner in the early 20th century, encourages “ways of recognizing and exploring the supersensible-spiritual world that exists in the sensory-material world. This ‘spiritual science’ sees itself as a new approach to a deeper and more comprehensive knowledge of nature and man.”

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    The concept behind Waldorf schools is a “developmentally appropriate, experiential, and academically-rigorous approach to education.” Compared to the pressure to perform in state-run schools, the goal is to strengthen individual responsibility as well as creative, practical and social skills. Another difference lies in self-administration by parents and teachers instead of a “hierarchically organized external control of the state schools.” 

    Through close personal ties with teachers, parents can actively influence everyday school life according to their beliefs with fewer interventions of internal school control bodies compared to state schools. Hence, the self-administration model makes independent schools susceptible to infiltration by far-right actors and conspiracy theorists. According to Ansgar Martins, a religious studies scholar at Frankfurt University, this structural weakness is compounded by the “pronounced anthroposophical inclination toward conspiracy theories” of Waldorf schools that stems from Steiner’s original teachings.

    Steiner held a developmental, esoteric and essentially racist view of humanity that saw the world divided into superior and inferior races, exemplified by countless discriminatory statements against Jewish and especially black people: “How can a Negro or an utterly barbaric savage become civilized? … The Negro race does not belong in Europe, and it is of course nonsense that it now plays such a large role in Europe.”

    Embed from Getty Images

    These remarks are joined by Steiner’s pseudoscientific conception of the physical and intellectual superiority of the white race, reminiscent of the Nazi-era Volkstum concept according to which humanity reached its developmental endpoint in the white race: “If the blue-eyed and blond-haired people were to die out, people would become increasingly stupid unless they developed a kind of cleverness which is independent of blondness. … The white race is the future race, is the spirit-creating race.”

    According to Germany’s Federal Ministry for Family Affairs, Senior Citizens, Women and Youth, these statements “are to be regarded as particularly serious, since they are by no means random products or racist stereotypes caused by the spirit of the times. Rather, they are to be seen as manifestations of a specifically Steinerian esoteric racial science.” In the Stuttgart Declaration of 2007, the Association of Independent Waldorf Schools condemned “any racist or nationalist appropriation of their pedagogy.” Nevertheless, this declaration did little to prevent attracting far-right conspiracy theorists even before the pandemic.

    Far-Right Infiltration

    In 2013, the managing director of a Waldorf school in the German town of Rendsburg was dismissed because of connections to the far-right Reichsbürger (Citizens of the Reich) movement. He attracted attention by distributing leaflets in the school spouting that “the Federal Republic of Germany … is not a state, but the managing legal advisor of a state simulation [is]. There is no de jure and de facto state of the Federal Republic of Germany.” 

    The Reichsbürger is a heterogeneous movement that, referring to the historical German Reich, rejects the existence of the Federal Republic of Germany and its legal system, thus denying legitimacy to democratically elected representatives. A small proportion of the Reichsbürger movement is made up of right-wing extremists, but the anti-state and conspiracy theory tenets of the entire scene facilitate a connection to anti-Semitic narratives that are central to the far-right domain.

    Embed from Getty Images

    At another Waldorf school in the German town of Minden, a teacher taught unchecked for 20 years before his connections to ethno-nationalist right-wing extremist groups became known. Even before Wolf-Dieter Schröppe became a teacher, he maintained contacts with veteran Nazis, including the war criminal Erich Priebke — the man responsible for the massacre of 335 people as a captain in the SS and sentenced to life in prison. It took more than four months before the school terminated Schröppe’s employment contract, partly because some colleagues spoke out in his support.

    In 2015, these incidents prompted the Association of Independent Waldorf Schools to publish a brochure conceding that the anthroposophy-based Waldorf pedagogy has a “great attraction” for the right-wing extremist conspiracy theorists, specifically for the Reichsbürger.

    During the COVID-19 pandemic, however, Waldorf anthroposophy again garnered attention. To this day, Steiner’s worldview translates into a greater vaccine skepticism in Germany as a whole and in Waldorf schools in particular due to public acceptance and influence of anthroposophy. Underlying Steiner’s philosophy is the dangerous belief that diseases serve a karmic purpose by stimulating child development and making amends for mistakes in past lives.

    Hence, over the last decades, vaccine skepticism has manifested itself in lower vaccination rates in Waldorf schools, resulting in regular measles outbreaks. In this respect, an incident at a school in the city of Freiburg came as no surprise when 117 COVID-19 cases were recorded and more than 50 forged medical certificates were discovered exempting students and teachers from wearing a mask.

    Embed from Getty Images

    At a Waldorf school in the Bavarian town of Landsberg, a father who is both a doctor and a homeopath issued certificates to families of other students to circumvent mandatory mask-wearing, denouncing people who choose to do so as “mask hypochondriacs.” At a demonstration against COVID-19 measures, he showed the indictable Hitler salute that resulted in criminal charges.

    The Bavarian Ministry of Education confirms these incidents are not isolated cases. Mask exemption certificates were seven times more likely to be issued at Bavarian Waldorf schools than at state schools. Nevertheless, many Waldorf parents show resolve against COVID-19 deniers and far-right activities. According to the mobile counseling service against right-wing extremism in Bavaria, Waldorf parents “disproportionately often” reported similar incidents at schools during the pandemic.

    COVID-19 Denier Schools

    To evade resistance at state but also independent schools and shield children from COVID-19 measures, some parents and teachers went a step further, founding their own learning initiatives and so-called supplementary schools. Insights into the network groups behind those supplementary schools reveal political affinities not only with the Reichsbürger but with another the far-right esoteric movement.

    In Rosenheim, Bavaria, an elementary and middle school teacher founded a Querdenker (Lateral Thinkers) school to reflect the movement’s pandemic skepticism. More than 50 pupils were taught here by parents and educators, including herbalists, music teachers and shamans. On advertising leaflets, the school falsely claimed to be located on Russian territory so that German law would not be applicable.

    Embed from Getty Images

    The school principal was active in networks spreading far-right esoteric ideas of the Anastasia movement, a decentralized conspiracy group of far-right esotericists and settlers, based on the protagonist of the “Anastasia” fantasy novel series by Russian author Vladimir Megre. According to sociologist Matthias Quent, the novels “transport cultural racism and anti-Semitism. These are ideological patterns that we also know from National Socialism. According to them, modern society is doomed, and people must retreat to the native soil or family estates.”

    Connections to the Anastasia movement also existed in the newly founded Bauernhofschule (farm school) in the state of Hesse, which was registered as a supplementary school. Hesse’s school law enables parents to establish schools with scant bureaucratic hurdles as long as they supplement, not replace state curricula. According to the German state of Hesse’s public broadcaster, HR, Telegram chat transcripts revealed that the school operators proclaimed to teach children how to keep animals, grow vegetables and live in harmony with nature. Nevertheless, the chat was inundated with extremist, anti-Semitic views from the Reichsbürger and Anastasia movements.

    Even Holocaust denial — a criminal offense in Germany — received indifferent or approving reactions in the chats. The ideological connections of the Bauernhofschule reach as far as the fringes of the QAnon movement, as Martin Laker’s membership in the group suggests. Laker is an active member of the Anastasia movement and runs his own online platform where he spreads QAnon myths.

    Underestimating the Problem

    Germany’s political establishment has been slow in reacting to the growing problem. While the authorities are taking action against the newly founded supplementary schools, including enforced closures due to a lack of permits, there is still no sign yet of German politicians taking the danger posed by far-right anthroposophists seriously enough.

    In January 2021, the Green Party’s national parliamentary group issued a request asking what connections between right-wing extremist opponents of the COVID-19 measures and anthroposophical groups are known to the German government and how it assesses “the potential danger in this regard, given the fact that anthroposophy in Germany maintains a far-reaching network of companies, foundations, and public institutions.” The answer: “The Federal Government has no knowledge of this.” 

    This rection is particularly disappointing considering the fight against right-wing extremism has gained political traction in recent years due to record high numbers of politically motivated crimes by right-wing extremists. In 2020, the government published a substantial catalog of measures accompanied by a 100-page final report on combating right-wing extremism and racism the following year. According to the report, programs to prevent extremism in state schools are to be promoted more vigorously but fail to mention the right-wing extremist slant of anthroposophical groups and independent schools.

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    It remains to be seen whether the new government under the leadership of Angela Merkel’s successor Olaf Scholz will turn its eye to this blind spot. There seems to be no lack of will on the part of Scholz’s fellow party member and the new minister of the interior, Nancy Faeser, who announced at her first public appearance in the new role that “A particular concern of mine will be to combat the greatest threat currently facing our free democratic basic order, right-wing extremism.” 

    The threat posed by far-right conspiracy theories and fake news might have only entered the public consciousness with the triumph of social media platforms. But conspiracy theories don’t germinate in a vacuum. Instead, often far-reaching causes are behind their emergence. In Germany, the societal impact of widespread anthroposophic views, promoted in state-approved institutions like the Waldorf schools, is one of the many causes that deserve increased critical, not at least political, attention.

    The views expressed in this article are the author’s own and do not necessarily reflect Fair Observer’s editorial policy. More

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    The Great Fever Misconception

    Yes or no? On or off? Zero or one? Binary is simple, and simple is good. It facilitates decision-making, especially in a crisis like a pandemic. After all, either you have COVID-19 or you don’t. If you have COVID, then you are infectious and should isolate to avoid spreading it. On the other hand, if you don’t have COVID, you can’t infect anyone else, no matter how closely you associate with them. Of course, the tricky part is determining whether or not someone has COVID.

    The PCR test is the gold standard for determining if a person has COVID-19. It’s a very good test that gives us the yes-or-no binary information that we value so much for making decisions. Unfortunately, the test is not always readily available and it’s also expensive. And timing is critical. If you take the test too soon after you are infected, the virus may not have yet traveled to your nose where the sample is taken, and thus the result may be a false negative — you have COVID but the test indicates you don’t. Also, it often takes time in a laboratory to process the results — will you isolate or carry on while you’re waiting?

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    Finally, what would prompt you to get a COVID test? Perhaps some event prompts you or requires a test by policy, but otherwise, you might take a test because you feel sick. If so, you already know you may be infectious. In that case, a positive COVID test merely confirms what you already suspect, and you normally get that confirmation a couple of days too late to do any good. Despite our heavy reliance on testing, it’s not as simple or as timely as we would like for deciding when to isolate.

    We’ve had another way to separate the healthy from the sick during the COVID-19 pandemic: symptoms. For example, if you have a fever, then you may be infectious. But temperature-based screening has not been very effective at all, and a big reason why is that the US government has historically defined fever as 100.4°F (38°C) or above. If a person’s body temperature is 100.3°F, then according to the government, that person does not have a fever. Does that make sense?

    Unfortunately, one of the distinguishing characteristics of COVID is the tendency of many infected people to have mild or even unnoticeable symptoms, including only slightly elevated body temperature, below 100.4°F. So, the government’s definition of “fever,” although simple and binary, has only confused the situation. Some people who were asymptomatic with COVID-19 took their temperature, found it to be below 100.4°F and assumed they did not have a fever. So, they carried on with normal day-to-day activities, often infecting others. Temperature-based screening systems typically use the government’s 100.4°F fever threshold, and, as a result, failed to prevent entry by many infected persons. Relying on the government’s 100.4°F fever definition has contributed to the spread of COVID-19. Where did this government standard come from, how can it be improved, and why has the US resisted change?

    © Douglas Dyer

    Origins of 100.4°F

    In 1868, a German physician, psychiatrist and medical professor named Carl Reinhold August Wunderlich published a paper describing his assessment that normal body temperature is relatively constant, varies from 97.9°F to 99.3°F (36.6°C to 37.4°C), and averages 98.6°F (37°C). He found that patients with a disease often exhibited a symptom of fever that he found to average at or above 100.4°F. He based these findings on 1 million temperature measurements for 25,000 patients.

    For the time, this scientific result was quite remarkable, and it changed medicine forever because it gave physicians the newfound ability to objectively assess the presence and severity of many diseases. However, Wunderlich’s patients were mostly German rather than being from different cultures, his thermometer may have been less accurate than those we have today, and people are a little different now than they were then.

    These are reasons to suspect that Wunderlich’s ideas of normal body temperature and fever are somewhat different today than they were in the mid-1800s. But, to be fair, Wunderlich observed differences in temperature based on many variables when healthy, and he advised that temperature averages have many “shades of gray.” In particular, Wunderlich noted that even smaller rises in temperature are cause for concern, and that there is no definite temperature threshold over which a person transitions from health to sickness. He said that any “elevation of the axillary [under the arm] temperature above 99.5°F (37.5°C) or any depression below 97.2°F (36.5°C) is always very suspicious.” He added: “But even when every precaution has been taken in making the observations, it is impossible to draw a hard and fast line to indicate by temperature the exact limits of health and disease.”

    © Douglas Dyer

    Today, clinical research suggests that Wunderlich’s findings should be revisited, that the normal temperature range varies by the individual, and that there is no arbitrary fever threshold that works for everyone. Yet, the US government and some medical experts still regard 98.6°F as normal body temperature and 100.4°F or above as a fever. For COVID019, this is simple, easy and, for most people, wrong.

    Improving on 100.4°F as a Fever Threshold

    If you’re interested in seeing if 100.4°F is an appropriate fever threshold for you, try taking your temperature. Use a normal, digital, under-the-tongue thermometer for at least 60 seconds. Make sure you haven’t consumed anything for 15 minutes — a hot or cold drink or food will change your measurement. Keep your mouth closed during the reading. Assuming you are healthy, if your temperature is below 98.6°F, then it’s a good bet that your fever threshold is under 100.4°F.

    If you were to take your temperature every day, preferably in the morning when you first wake, you would see that your normal temperature varies in a range of one degree or so. For example, in the image below is the normal temperature data for a person we’ll call JRDA5.

    © Douglas Dyer

    From this graph, we can see that JRDA5’s normal body temperature varies from 96.6°F to 97.4°F when healthy, and you can expect your own normal temperature to vary also.

    In modern medicine, a fever is understood to be a temperature elevation above a person’s normal range. This definition of fever is more accurate than an arbitrary fever threshold like 100.4°F that is based on population averages and data from 150 years ago. A person’s normal temperature range depends on many factors such as age, sex, nutrition and level of activity, and so different people will have different fever thresholds.

    Almost always, a fever threshold defined as above your normal temperature range is below 100.4°F. Therefore, if we use this new definition, there is significant potential for identifying sick people using temperature-based screening. Relying on 100.4°F is insufficient for identifying mild, pre-symptomatic or asymptomatic cases of COVID-19.

    Why the Government Has Resisted Changing the Definition of “Fever”

    A pandemic is not the best time for complicated methods. Perhaps the US government chose to stick with 100.4°F for simplicity and consistency. But, in this pandemic, nothing has been simple. We’ve learned to take advantage of vaccines that need boosting, tests that need repeating and symptoms that keep changing. People can figure out their normal temperature range and their own personal fever threshold if that means effective screening. Having a fever or not is still binary, even if we define fever as above your normal range. It’s still pretty simple.

    Elevated temperature is not definitive proof you have COVID-19. We all like certainty, and the PCR test will remain the gold standard for COVID. But we don’t need certainty to make a decision to isolate. A fever should prompt isolation, even though it may not be caused by COVID. The next step is to get tested and then wait for the results. We can stop the pandemic if people isolate if they get a fever. Fever is the most timely indicator we may be infectious.

    Asymptomatic cases may not exhibit any elevated temperature, so we cannot depend on temperature screening anyway. It’s possible that there are some people infected with COVID-19 who do not have any fever, perhaps because their immune system doesn’t work at all. However, we know that many asymptomatic cases are accompanied by elevated body temperature lower than 100.4°F. We can catch those people using the more correct definition of fever. The perfect should not be the enemy of the good.

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    People hate change and the government is no different. It takes a lot to pass federal legislation and to modify federal regulations. But the government’s 100.4°F fever threshold isn’t working. The effort to change will help us control the pandemic.

    How Redefining “Fever” Helps

    Since the omicron variant of COVID-19 emerged, we’ve seen increased demand for testing, with many people standing in line for hours waiting to get a test. In the United States, the government has been ordering more tests to address the shortages. However, the demand for testing can evidently overrun our testing resources. By using a more accurate definition of “fever,” people will have a better idea of when they need to get tested. Today, about 75% of tests come back negative. We have clinical evidence that fever and other readily available health data can predict test results. By redefining “fever,” we can make testing more efficient.

    We can also monitor our health every day, conveniently, in our own homes. We can’t afford to give everyone a daily PCR test, and hardly anyone wants that anyway. In contrast, it’s easy, fast and affordable to take our temperature every day. It’s a smart, safe way to help keep our friends and family safe and do our part to fight the pandemic. A lot of people would self-monitor if they knew it would help.

    The coronavirus that causes COVID-19 evidently mutates easily, giving rise to variants, and we don’t expect that to change. It’s possible there are already variants that are not caught by current tests. Redefining “fever” can help identify cases that PCR tests miss. So far, fever is a symptom of all variants. More broadly, fever is a symptom of many other infectious illnesses, such as the flu. Isolating when you have a fever is appropriate for new variants and other viruses to help prevent the spread and keep everyone safer.

    It’s high time for the government to redefine “fever” as body temperature above a person’s normal, healthy range. With a more accurate definition, temperature-based screening can be a powerful new tool for fighting the pandemic — and one well-suited to use by anyone, at home and in time to make a difference. Americans want to help fight the pandemic. It’s about time the government helps them do just that.

    The views expressed in this article are the author’s own and do not necessarily reflect Fair Observer’s editorial policy. More

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    Rowing Together to Tackle Inequality

    Beyond the health consequences of the pandemic, evidence shows that the COVID-19 crisis may result in increasing the levels of poverty and inequality for years, if not generations. This outcome is not inevitable. However, insufficient responses to the crisis have deepened inequalities both between and within countries and intensified public discontent, paving the way to “social turmoil and unrest,” says research Bruno Valerio.

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    The costs of the pandemic are being borne disproportionately by poorer categories of society since low-income households are more exposed to health risks and more likely to experience job losses and sharp declines in wellbeing. At the same time, the pandemic has been a boon for the wealthy. In response to the economic collapse in March and April 2020, central banks injected enormous amounts of liquidity into financial markets, keeping asset prices high while economic activity slowed down. Some of the biggest winners were those with high stakes in the technology sector.

    Against this background, Kara Tan Bhala, the founder of the Seven Pillars Institute for Global Finance and Ethics, suggests using the Gini coefficient as a measure of how close a country or the world is to economic upheaval. “The Gini coefficient gauges the income inequality of a region, where 0 corresponds with perfect equality and 1 corresponds with perfect inequality,” she says. “Perhaps nations begin seriously reforming economic policies when their Gini coefficients are above 0.4 (United States) and red lights start flashing trouble when a country scores above 0.5 (South Africa, Brazil).”

    But how do we tackle inequality? According to economist Etienne Perrot, “the adequate responses must … address both property [ownership] rights through anti-trust regulations to counter the abuse of a dominant position, policies through redistributive taxes and education so as not to confuse emulation and competition.” Other policy responses may include “reforms of the transparency and other features of firm governance, broader acceptance of countries’ right to control cross-border capital movements,” as Andrew Cornford points out.

    Embed from Getty Images

    To implement these policies, the first condition is that inequalities should be on the political agenda, which is not the case everywhere, as professor Yuriy Temirov illustrates with the case of Ukraine. But policy measures alone are not sufficient to reduce inequalities. They have to be complemented by a cultural, transformative process for learning to “row together” (Fratelli tutti), as Domingo Sugranyes of the Pablo VI Foundation says, to increase our socioeconomic resilience.

    By Virgile Perret and Paul Dembinski

    Note: From Virus to Vitamin invites experts to comment on issues relevant to finance and the economy in relation to society, ethics and the environment. Below, you will find views from a variety of perspectives, practical experiences and academic disciplines. The topic of this discussion is: Inequalities seem to accelerate in every part of the world due to COVID-19 and other issues. Unlike the climate debate, in social issues, we do not have a proper threshold for catastrophe. This leads to a possible overestimation of social resilience and leaves the issue as such largely untackled. Drawing on the particularities of your region or on your area of expertise, what should/can be done?

    “… perfectly predictable socioeconomic inequalities … ”

    “The pandemic only reveals perfectly predictable socioeconomic inequalities. Pope Francis had alerted the international community as soon as the first vaccines appeared. The causes of these glaring social inequalities mix the institutional side through the right of property, the politics increasingly tempted by nationalism, and the spiritual bathed in the materialistic individualism of modernity. The adequate responses must therefore address both property right through anti-trust regulations to counter the abuse of a dominant position, policies through redistributive taxes and education so as not to confuse emulation and competition, distinguishing between the elite and the financial success.”

    Etienne Perrot — Jesuit, economist and editorial board member of the Choisir magazine (Geneva) and adviser to the journal Etudes (Paris)

    “… the Gini coefficient as a measure of how close a country is to economic upheaval… ”

    “In the global climate crisis, anything over 2°C above the average pre-industrial temperature leads to unmitigated disaster. In a similar vein, I suggest we use the Gini coefficient as a measure of how close a country or the world is to economic upheaval. The Gini coefficient gauges the income inequality of a region, where 0 corresponds with perfect equality and 1 corresponds with perfect inequality. Perhaps nations begin seriously reforming economic policies when their Gini coefficients are above 0.4 (United States) and red lights start flashing trouble when a country scores above 0.5 (South Africa, Brazil). Of course, these watershed levels need further research, but it would be enlightening to have an idea of the income inequality thresholds of social disaster.”

    Kara Tan Bhala —president and founder of the Seven Pillars Institute for Global Finance and Ethics

    “… public support will be essential to act to avert a total catastrophe … ”

    “Despite its importance, GDP as an indicator should no longer be the only way we measure economic success. Fairer economy would mean tackling health inequalities and getting to grips with issues that prevent individuals from certain ethnic or socioeconomic backgrounds meeting their full potential. We need to embrace means of improving wellbeing and advancing social mobility, build on promoting social inclusion as well as addressing poverty. New plans must be put in place to achieve a more sustainable economy in a more equal and socially just society, and this cannot just be an aspiration — it must be seen as critical to our survival. In recognizing the profound challenges, public support will be essential to act to avert a total catastrophe. The coronavirus is still alive, and risk lies in whether this will be possible.”

    Archana Sinha — head of the Department of Women’s Studies at the Indian Social Institute in New Delhi, India

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    “… rowing together (Fratelli tutti) …”

    “I don’t see a theoretical answer to this extremely vast question. My reaction can only be in terms of (modest) action-oriented commitment: ‘rowing together’ (Fratelli tutti), i.e., trying to identify social projects of high solidarity value, which help people to emerge from poverty on their own capabilities, and look for means — money, goods, time — in order to increase the scope and impact of such communities. We need business and people in business to get much more decidedly involved in these kinds of projects. This is, among many other organizations, what we try to do with The Voluntary Solidarity Fund (VSF International) and VSF Spain. Everybody is welcome to join.”

    Domingo Sugranyes — director of a seminar on ethics and technology at Pablo VI Foundation, former executive vice-chairman of MAPFRE international insurance group

    “… an effective wealth tax and a global minimum corporate tax … ”

    “With the COVID-19 pandemic, the gap between the rich and the poor, in particular the income gap, has increased as Pope Francis, among others, has stated on several occasions. It is undeniable that the trend had already started several decades ago. However, with COVID-19, inequalities have reached record levels that do necessitate strong internal reforms. If no actions will be taken, such as an effective wealth tax and a global minimum corporate tax, the possibility of social turmoil and unrest will be inevitable. In Italy, political parties are literally unable to agree and set the slightest kind of agenda for a proper patrimoniale (wealth tax or asset tax), preferring to keep the country in an extremely dangerous status quo.”

    Valerio Bruno —researcher in politics

    “… fiscal measures, transparency, control of cross-border capital movements … ”

    “Much attention has been given to the wealth as well as the income dimension of the inequalities — the associated rents of the minority at one end, and the much lower and often stagnating incomes of the remainder. The latter comprises not only the working class, but also parts of the middle class. Much commentary has also concerned the opportunities to hide wealth — and thus reduce tax exposure — provided by cross-border financial liberalization and offshore financial centers. Policy responses to the inequalities should include fiscal measures, including improved taxation of the wealth of individuals and firms, reforms of the transparency and other features of firm governance, broader acceptance of countries’ right to control cross-border capital movements, and changes in legal definitions designed to facilitate controls over firms’ domestic and cross-border access to different economic activities and industries and thus to restrict regulatory arbitrage and opaqueness in firms’ operations.”

    Andrew Cornford — counselor at Observatoire de la Finance, former staff member of the United Nations Conference on Trade and Development (UNCTAD), with special responsibility for financial regulation and international trade in financial services

    “… imaginative countermeasures of income … ”

    “The fundamental dynamic of any economy is summed up in the dictum, ‘To those who have shall be given and they shall have more than they can use, and from those who have not shall be taken even what they have.’ COVID also has set it in motion. Where the effects are beneficial — e.g., the reduction in travel by air — it should be encouraged. Further good news is that the deprivation inflicted by COVID on the deprived has been met — at least in places like Geneva — not by the usual blame, scorn and exclusion, but by imaginative countermeasures of income support and new forms of communication like Zoom.”

    Edouard Dommen — specialist in economic ethics, former university professor and researcher at the UNCTAD and president of Geneva’s Ecumenical Workshop in Theology.

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    “… first we have to think about youth … ”

    “The social deprivation problems are persistent, and this fact routinizes somehow their existence and hinders the definition of a social resilience threshold. Differentiated priorities emerged in South/Eastern Europe after the successive waves of crisis, but first we have to think about youth since no country can sustain without giving hope to its members through a micro/macro strategy that includes: i) an immediate recovery plan with emergency income support for the vulnerable groups; ii) long-lasting work-related policies and investments on youth employment (work-based training, tax reliefs for innovative enterprises); iii) strategies of sharing the risks with interregional cooperation and job retention schemes; and iv) protection and support of childhood integrity (tackling invisible work and poverty with financial benefits for low-income families and proper child/health-care, along with future-centered support, such as home learning environment and early schooling interventions).”

    Christos Tsironis —associate professor of social theory at the Aristotle University of Thessaloniki

    “… in Ukraine, social inequality will not become a priority soon … ”

    “In Ukraine, social inequality has two primary sources: the legacy of the ‘socialist’ totalitarian past and deformed oligarchic capitalism. At the same time, the initial period of transformation with the exacerbation of the problems of social inequality has dragged on dangerously. From 1991 to 2014, the domination of the interests of oligarchic groups over national interests acted as a brake on reforms. After the Revolution of Dignity, there was a political will to implement unpopular reforms, but they had to be carried out in conditions of the population’s fatigue from reforms, in the realities of Russian aggression. The promotion of reforms by servants of the people is complicated by populism. In Ukraine, social inequality will not become a priority soon. At this stage of transformation, this issue cannot be a priority; the authorities do not have a correct understanding of the hierarchy of priorities, and society’s perceptions of equality/inequality are distorted by collectivism and paternalism.

    Yuriy Temirov —associate professor, dean of the Faculty of History and International Relations at Vasyl Stus Donetsk National University

    *[An earlier version of this article was published by From Virus to Vitamin before the Ukraine War began.]

    The views expressed in this article are the author’s own and do not necessarily reflect Fair Observer’s editorial policy. More

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    Industrialization and Innovation Could Make the Indian Economy Takeoff

    Labor-intensive manufacturing has historically been the best-known recipe for driving economy-wide productivity enhancement. Over time, several countries, notably those in East Asia, managed to move unskilled workers from farms in rural areas to factories in urban settings. This transition increased both individual incomes and national GDPs, ultimately boosting productivity.

    Not all countries have taken to manufacturing, though. Some of them have experienced premature deindustrialization, which economist Dani Rodrik has analyzed extensively. India’s manufacturing sector never reached full potential because of this phenomenon.

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    Instead, India ended up with the “premature servicization” of its economy. This diminished its capacity to create enough well-paying jobs for its large population and did not allow for increased productivity.

    India’s Drive to Industrialization and Innovation

    Services now comprise more than half of India’s GDP. As alluded to above, services do not deliver productivity growth in the same way as industry. Those who argue for free trade believe this does not matter. India can import industrial goods like cars and cellphones while exporting software writing and call center services.

    Such arguments for a trade-based economy fail to recognize, or in many cases deliberately omit, increasing trade deficits when a country has poor manufacturing. In a volatile and uncertain world, these deficits can become a geopolitical liability for any nation because manufacturers can shut off access to the most basic of goods. Manufacturing does not only increase productivity and enhance security, but it also creates jobs and lowers inequality. For these reasons, India has recently embarked on a reindustrialization program. 

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    The new Production Linked Incentives (PLIs) seek to attract the more reputed global manufacturers, the best brains in industry and high-quality, long-term investments to India. Under PLIs, participants can manufacture for the domestic and/or export markets. The government applied these incentives to 14 sectors, of which telecoms, cellphones, electronic equipment and automobiles are benefiting already.

    Many manufacturers station their Global Capability Centers (GCCs) in India, which has become a global base for services operations. A June 2021 report by Deloitte and NASSCOM states that 1,300 GCCs employed more than 1.3 million professionals and generated $33.8 billion in annual revenues in the financial year starting April 1, 2020, and ending March 31, 2021. Another report estimates that GCCs are likely to grow by 6-7% per year and rise to over 1,900 by 2025. It also says that these GCCs are evolving from back-office destinations to global hubs of innovation.

    Digitization is aiding this transformation of GCCs. Now, industrial design is no longer a monopoly of a headquarters in Michigan or Munich. Thanks to fast-speed internet and powerful computers, research, design and development of new machines, goods and consumption articles can take place anywhere in the world. Software is playing an increasingly bigger role in creating new hardware, driving additive manufacturing and automating factories. A process of disintermediation of manufacturing is under full swing, leading to what can be called a “servicization of manufacturing.”

    This trend gives India a unique opportunity. Global businesses need rapid, at-scale and cost-effective innovation. With its cost advantages and services ecosystem, India can provide that innovation to the world. Conventionally, innovation is associated with creating something new such as an iPhone or a Tesla. However, innovation occurs in less flamboyant ways as well. Any change in design or development that creates new value for the firm or provides an operational competitive advantage is an innovation too.

    A Unique Opportunity to Takeoff

    Global companies aiming to operate faster, cheaper and better are increasingly operating in India. The country has become more innovative over the years. India granted 28,391 patents in the financial year 2020-21, up from 9,847 in 2016-17 and 7,509 in 2010-11. Last year, the press reported that India registered as many trademarks in the past four years as in the previous 75. India’s rank on the global innovation index has moved up from 81 in 2015 to 46 in 2021. The World Intellectual Property Organization also recognized India as the second most innovative low and middle-income economy after Vietnam.

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    India missed out on the first and second industrial revolutions. The first one took place in Europe between the mid-18th and mid-19th centuries when India was fragmented and undergoing colonization by the British East India Company. The Second Industrial Revolution occurred in the 20th century, but India was ruled by the British government directly, which had no interest in industrialization. London’s incentive was to use India as a provider of raw materials and as a captive market for finished British industrial goods.

    After independence in 1947, India failed to industrialize unlike its East Asian counterparts. It chose a Soviet-style planned economy that was closed and protectionist. Only in 1991 when the Soviet Union collapsed did India embrace market reforms and liberalized its economy.

    Today, India is growing at 9% and its GDP is about to touch the $3-trillion mark. With strong global tailwinds, India can embrace industrialization and innovation, and finally enter what American economist Walt Rostow has termed the takeoff stage of economic growth.

    The views expressed in this article are the author’s own and do not necessarily reflect Fair Observer’s editorial policy. More

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    Finding a Way to Diss Information

    On March 11, at the United Nations, Russia accused the United States and Ukraine of collaborating on developing chemical and biological weapons. Russian officials claimed to have documents proving an attempt to destroy evidence of this illegal activity. None of the coverage reveals whether the documents published on the Russian Defense Ministry’s website make a credible case. In other words, the Russian accusations may or may not be true. Whether such activity is likely or not is another question, but even if it were considered likely, that does not make it true.

    The US and Ukraine have consistently and emphatically denied any even potentially offensive operations. The debate became complicated last week when at a Senate hearing, US Under Secretary of State Victoria Nuland admitted that the laboratories exist and were conducting research that might have dangerous consequences if it fell into Russian hands. She revealed nothing about the nature of the research. Various US officials explained that the research existed but aimed at preventing the use of such weapons rather than their development. That disclaimer may or may not be true.

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    At the United Nations meeting, the US ambassador to the UN, Linda Thomas-Greenfield categorically denied any activity with these words: “I will say this once: ‘Ukraine does not have a biological weapons program.’” As The Guardian reports, the ambassador then “went on to turn the accusation back on Moscow” when she accused Russia of maintaining a biological weapon program. That may or may not be true. In fact, both accusations have a strong likelihood of being true.

    ABC News summarized the issue in these terms: “Russia is doubling down on its false claims that the U.S. and Ukraine are developing chemical or biological weapons for use against invading Russian forces, bringing the accusation to the United Nations Security Council on Friday.”

    Today’s Weekly Devil’s Dictionary definition:

    False claims:

    Hypotheses that are likely enough to be true but difficult to prove conclusively

    Contextual Note

    The basic claim made by ABC News is true, at least if we reduce the message to the incontestable fact that the Russians brought the “accusation to the United Nations Security Council on Friday.” What may or may not be true is the reporter’s assertion that these are “false claims.” As noted above, the Russian claims may or may not be true, meaning they may or may not be false.

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    For news reporting in times of war, propaganda becomes the norm. It trumps any form of serious inquiry, that the legacy media in the US bases its reporting on two complementary suppositions: that everything US authorities tell them is true and that most everything Russians claim is false. Those same reporters who suppose their side is telling the truth and the other side is lying also suppose that their readers share the same suppositions. In times like these, propaganda is the most effective and especially the most marketable form of communication.

    The second sentence in the ABC News article adds a new dimension to the assertion. It complains that a “web of disinformation, not only from Russian state media but also Chinese propaganda outlets and even some American voices, have increasingly spread the conspiracy theory this week.” The metaphor of a spider’s web conveniently brings back the sinister logic of the McCarthy era, when certain Americans were accused of being witting or unwitting vectors of communist propaganda. And it inexorably links with the idea of spreading a “conspiracy theory.”

    It’s worth stopping for a moment to note that each sentence in the ABC News article is a paragraph. Single-sentence paragraphing is a journalistic technique designed to make reading easier and faster. Subtle writers and thinkers, such as Al Jazeera’s Marwan Bishara, can sometimes employ the technique to create a percussive effect. But in times of heightened propaganda, the popular media resorts to the practice to short-circuit any temptation on the reader’s part to think, reason, compare ideas or analyze the facts. In journalistic terms, it’s the equivalent of aerial bombing as opposed to house-to-house combat.

    The third sentence in the ABC News article delivers a new explosive payload, this time with appropriately added emotion (“heightened concern”) and a horrified hint at sophisticated strategy (“false flag”). It speaks of “heightened concern among U.S. and Ukrainian officials that Russia itself may be planning to deploy chemical or biological weapons against Ukrainian targets or as part of a so-called ‘false flag’ operation.”

    In just three sentences, the article has mobilized the standard web of associations journalists use for propaganda masquerading as news. The vocabulary may include any of the following terms: “disinformation,” “fake news,” “false flag,” “conspiracy theory,” “propaganda,” “misinformation,” and, on occasion, the more traditional pair, “deception and lies.”

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    The article’s fourth sentence is a quote from Ukrainian President Volodymyr Zelensky: “This makes me really worried because we’ve been repeatedly convinced if you want to know Russia‘s plans, look at what Russia accuses others of.” That is a trope the Biden administration has been using throughout this controversy. Zelensky has read the script and the journalist is there to transcribe it.

    Historical Note

    The still-developing history of COVID-19 that has been with us for nearly two and a half years should have taught us at least two things. Governments have a penchant for presenting a unique version of the truth that insists no other version is possible. They also excel at putting in place a system that suppresses any alternative account, especially if it appears to approach an inconvenient truth. Whether you prefer the wet market or the lab leak theory is still a matter of debate. Both narratives have life in them. In other words, either of them may or may not be true. For a year, thinking so was not permitted.

    The second thing we should have learned is that the kind of experimentation done in biological and chemical research labs will always have both a defensive and an offensive potential. From a scientific point of view, claiming that research is strictly limited to defensive applications makes no sense. Even if the instructions given to research teams explicitly focus on prevention, the work can at any moment be harnessed for offensive purposes. Victoria Nuland appeared to be saying just that when she expressed the fear that Russians (the bad guys) might seek to do something the Ukrainians and Americans (the good guys) would never allow themselves to do.

    Or would they? That is the point Glenn Greenwald made in citing the history of the weaponized anthrax that created a wave of panic in the days and weeks following the 9/11 attacks in 2001. George W. Bush’s White House, followed by the media, clearly promoted the idea that the “evidence” (a note with the message “Allah is Great”) pointed to the Middle East and specifically at Iraq’s Saddam Hussein. Even before 9/11, Bush’s White House had told the Pentagon to “accelerate planning for possible military action against Iraq.” In January 2002, the president officially launched the meme of “the axis of evil” that included Iraq, Iran and North Korea.

    In retrospect, even though no legacy news media will admit this, the most credible interpretation of the anthrax attacks that killed five Americans was as a failed false flag operation designed to “prove” that Iraq was already using biological weapons. As the White House was preparing for war in Afghanistan, it sought a motive to include Iraq in the operations. The plan failed when it became undeniable that the strain of anthrax had been created in a military lab in the US.

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    Years later, the FBI “successfully” pinned the crime on a scientist at Fort Detrick called Bruce Ivins, the Lee Harvey Oswald of the anthrax attacks. The FBI was successful not in trying Ivins but in pushing him to commit suicide, meaning there would be no review of the evidence or reflection on the motive for the attacks. This at least is the most likely explanation because it aligns a number of obvious and less obvious facts. Nevertheless, even this narrative accusing the Bush administration of engineering what was essentially a more lethal version of a Watergate-style crime may or may not be true. 

    The moral of all these stories is that in times of conflict, everything we hear or read should be reviewed with scrutiny and nothing taken at face value. And just as we have learned to live with unsolved — or rather artificially solved — assassinations of presidents, prominent politicians and civil rights leaders, we have to live with the fact that the authorities, with the complicity of an enterprising media skilled at guiding their audience’s perception, will never allow us to know the truth.

    *[In the age of Oscar Wilde and Mark Twain, another American wit, the journalist Ambrose Bierce, produced a series of satirical definitions of commonly used terms, throwing light on their hidden meanings in real discourse. Bierce eventually collected and published them as a book, The Devil’s Dictionary, in 1911. We have shamelessly appropriated his title in the interest of continuing his wholesome pedagogical effort to enlighten generations of readers of the news. Read more of The Fair Observer Devil’s Dictionary.]

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    American Hypocrisy and Half-Measures Damn Ukraine and Help Russia

    Shortly after Russian forces invaded Ukraine, the government in Kyiv floated the idea of a no-fly zone to help protect civilians and soldiers. The West gave a swift and decisive refusal: threatening to shoot down Russian planes could set off World War III.

    And yet, three weeks into the war, the no-fly zone proposal just won’t die. Ukrainian President Volodymyr Zelensky begs for air support almost daily. In protests and social media posts, millions of ordinary people around the world ask NATO to #closethesky. 

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    Here in America, a nationwide poll showed that 74% of Americans support a no-fly zone. And earlier this month, 27 foreign policy experts published an open letter requesting a limited no-fly zone over humanitarian corridors. 

    If a no-fly zone is so obviously impractical, why are we still talking about it? The answer — which is conspicuously missing from mainstream Western discourse — lays bare the fundamental problem in the US response to the war. 

    A False Dichotomy

    Politicians and the media offer a single simplistic argument against protecting Ukraine’s airspace: Russia’s nuclear arsenal. Almost every official statement, article and op-ed can be summarized in one sentence: A no-fly zone would start World War III.

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    But here’s the part no one says out loud: What happens if the West doesn’t institute a no-fly zone? Will such a move keep us safe from nuclear Armageddon? Can the US manage to stay out of this war and out of Russia’s crosshairs? 

    Vladimir Putin’s rhetoric — and his actions — offer a clear answer. The US can avoid direct confrontation but at a price: handing the Russian leader an absolute, total victory. In Ukraine, of course, but also in Moldova and Georgia and perhaps the Baltics, and who knows where else? And, of course, carte blanche to commit whatever atrocities he’d like worldwide (à la Syria). 

    If Putin cannot win, he will lash out against enemies real and imagined. At that point, it won’t matter whether those enemies have instituted a no-fly zone. Putin has already likened sanctions and weapons deliveries to declarations of war on Russia, creating a ready excuse for retaliation. He’s set up a false narrative about Ukraine building a nuclear bomb, building a rationale to use his own nuclear weapons. 

    America’s Choice 

    The real question before the US government isn’t whether to institute a no-fly zone. It’s whether America is ready to help Ukraine win or prefers to stand by and watch the rise of a new Russian empire. 

    If not, we must stand up to Putin now. There are multiple viable policy options for doing so. One is arranging a no-fly zone administered by the United Nations rather than NATO. Another is sending Ukraine decommissioned Western fighter jets and several dozen volunteer air force vets who would be granted Ukrainian citizenship. Yet another would be to send only jets — Ukrainian fighter pilots have confirmed that they can, in fact, learn to fly Western jets in just a few days. 

    The specific mechanism matters less than the political will — the decision to send Putin a clear message that the US will not let him take Ukraine, backed up by sufficient military support. This option is not risk-free. But it’s impossible for Ukraine to prevail without angering Putin. 

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    Is the risk worth it? Ukrainians believe so because they see something most Americans haven’t yet figured out: World War III has already started. Putin’s grand ambitions are reminiscent of a certain German dictator 80 years before him, as is the US strategy of appeasement. In the end, US involvement is inevitable, so why not be strategic and proactive rather than reacting years later when the human and economic costs of Putin’s empire-building are too high to be ignored? 

    Of course, the US government may disagree with this perspective and opt for appeasement 2.0. Maybe this time around, the unstable dictator will be more reasonable?

    If this is the case, and the US government is not ready to stand up to Putin, it’s essential to make it clear that Zelensky is on his own. If we cannot make a commitment to let Ukrainians win, we should let them lose. Ukraine’s government deserves an honest understanding of what it can and can’t expect from the US so it can make decisions accordingly.  

    The Worst of Both Worlds

    So far, American politicians have spurned both of these options. Instead, they’re pursuing an immoral, dangerous fantasy, waiting for someone to stop Putin without America getting its hands dirty. To this end, they offer half-measures that drag out the conflict and cost thousands of lives. They wear blue and yellow, they send aid and enact sanctions, but they consciously steer clear of any support that could lead to a Ukrainian victory. 

    This brings us back to the absurd situation we started with: ongoing calls for an impossible no-fly zone, which we can now see are absolutely logical. Let’s review.

    America: Ukraine, we support you in your brave fight for freedom!

    Ukrainians and their friends abroad: Great! So, the one thing we need is support with our airspace.

    America: No can do. But believe us — we’re on your side here and we’re ready to help! 

    Ukrainians: Thank you. We’re dying here and we can’t win without air support. 

    America: Once again, no. But we stand with you.

    This hypocrisy goes well beyond the debate over the no-fly zone. For instance, on March 6, Secretary Blinken gave the green light for Poland to donate its fighter jets to Ukraine. When Poland agreed to cede the jets to the US for immediate transfer to the Ukrainian army, American officials backpedaled in a truly impressive display of doublespeak. 

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    Ukraine cannot win this war without the US taking tangible steps to protect Ukrainian airspace. Pretending otherwise and willfully extending the bloodshed with partial measures is the worst possible option for the United States. 

    The US government doesn’t owe Ukraine support. But it does owe Ukraine an immediate end to the falsehoods and the empty words — a bullshit ceasefire, if you will. An admission that, no matter how many civilian deaths, no matter what kind of banned weapons Russia uses or how many war crimes it commits, no matter if Russia drops a nuclear bomb on Kyiv, the US will not step in. 

    Until then, Russia pushes new boundaries every day with impunity, Ukraine holds out hope for help that will never come and Joe Biden wavers while children die. 

    The views expressed in this article are the author’s own and do not necessarily reflect Fair Observer’s editorial policy. More

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    The War in Ukraine Threatens Global Food Security

    Russia’s war against Ukraine directly impacts agricultural markets. First of all, the conflict impedes the delivery of existing stocks and the upcoming sowing of many types of grains. Due to the occupation and destruction of major ports, exports will continue to collapse. Agricultural exports from Russia are currently still possible on the main transport route via ports on the Black Sea. 

    However, shipping companies report limiting their transport due to the perceived danger and concerns about loss of business. Recently, Ukraine announced that it would restrict its own exports to secure domestic supply.

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    Ukraine and Russia have become key players for the export of both grain and sunflower (oil) in the post-Soviet era. For quite some time, their crop yields have influenced international volumes and prices, with Ukraine providing on average 10% of the world’s wheat export supply, and Russia as much as 24%; for maize, Ukraine supplied 15% of the staple feed and fodder. 

    The international market for fertilizer is even more concentrated. With trade shares of individual fertilizer components reaching up to 50%, Russia dominates the market for ammonium nitrate and Belarus, at 16%, for potash fertilizer.

    Wartime Uncertainty

    Due to general business uncertainty, the financial sanctions of numerous states and the EU against Russia currently affect agricultural exports indirectly while specific sanctions directly target respective exports. For example, last year, in response to the crackdown on the opposition in Belarus, the EU imposed sanctions on the market-dominating Belarusian potash producer Belaruskali, extending them last week.

    Prices for many agricultural products determined by the Food and Agriculture Organization of the United Nations currently already exceed the historic highs during the food price crises of 2007 and 2011. Fertilizer prices have also been rising to record levels for months. In addition, shortages due to reduced or canceled supplies of grain and fertilizer from Russia, Ukraine and Belarus are driving up prices. 

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    Since the beginning of the COVID-19 pandemic, Russia, like many countries, has been using export restrictions on agricultural products to secure its own supplies despite international warnings against these price-increasing measures. Just last week, the government recommended that Russian companies also limit fertilizer exports.

    Besides Ukraine, crop and supply shortfalls initially affect countries that import agricultural products from the war-affected region and are currently looking for readily available alternative sources. This drives up prices on global markets, thereby burdening all importers worldwide but hitting low-income countries and people the hardest. Egypt has an import share of 60% of Russian grain and 20% of Ukrainian grain. 

    To date, other countries that are already vulnerable to supply insecurity, such as Lebanon, Libya, Yemen, Bangladesh and Turkey, also purchase the majority of their grain from the region. Chad and Niger imported up to 80% of their fertilizer and raw materials from Russia and Belarus; Europe, as well as many countries in Latin America, also purchased large shares.

    Options for Adjustment 

    Affected countries have different options for adjustment. Egypt still has limited but probably sufficient grain stocks of its own for the time being, despite strong supply dependence vis-à-vis the region. In Lebanon, on the other hand, the 2020 explosion at the port of Beirut destroyed wheat warehouses, reducing storage capacity from six months to one month, necessitating a continuous flow of supplies.

    The remaining supply gaps that cannot be solved in importing countries by means of shifts in consumption toward more food rather than energy use require both food and fertilizer support. However, these are becoming more expensive as a result of rising prices for procurement and delivery. Transport and delivery must be additionally protected when sourcing from the region along vulnerable routes.

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    Trade must remain open and possibly protected on routes perceived as dangerous by shipping lines. Typical crisis-induced but price-pushing export restrictions must be avoided, both within the EU and internationally. Failing supplies from the major agricultural region will show their full effects in the coming autumn crop season, which may only be offset to a certain extent by crops from other major producers such as Australia, the US and the EU.

    Large agricultural countries could pursue forward-looking, coordinated market relaxation in order to quickly identify food supply potentials. However, in order to avoid symbolic politics or protectionist reflexes to support domestic production, the volume and price effects of possible approaches — suspension of set-aside programs, reduced use of agro-fuels or land rededication from fodder to food production — need to be assessed accurately. If a contribution to market relaxation is to be expected, corresponding measures should be quickly initiated for the upcoming crop year as a temporary crisis measure. 

    Similarly, the US is discussing the suspension of the conservation reserve program to allow farmers to bring set-aside areas into production. Price-driving sanctions with regard to fertilizers and agricultural goods should be avoided — or at least be accompanied by aid concepts to absorb linked supply risks.

    As during the onset of the COVID-19 crisis, the Agricultural Market Information System (AMIS) — a monitoring mechanism developed by the G20 in response to past food price crises — should be used for an international information campaign to prevent price-pushing export restrictions by means of appeals. However, more important than appeals would be the adoption of strict criteria and deadlines for these measures that are enforceable at the World Trade Organization level.

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    In the future, AMIS should cover not only agricultural products, fertilizers and energy sources but also the conditions of and access to trade infrastructure. Here, restrictions heavily influence supply and price and should be included in a comprehensive warning system for international supply potential.

    Furthermore, a future international political offensive for fertilizers and their raw materials is needed. Not only must the market situation be monitored and, in the event of shortages, be accompanied by aid early on. Technologies to make their use more efficient and to increase fertilizer production capacities as well as approaches to their substitution, whether technologically or by cultivation, are also needed.

    *[This article was originally published by the German Institute for International and Security Affairs (SWP), which advises the German government and Bundestag on all questions related to foreign and security policy.]

    The views expressed in this article are the author’s own and do not necessarily reflect Fair Observer’s editorial policy. More