More stories

  • in

    Beware! Populism Might be Bad for Your Health

    Dresden is one of Germany’s great cities, known worldwide for its meticulously rebuilt historic center, destroyed in one night at the end of World War II. Pre-Christmas shoppers have probably come across a Dresdner Christmas stollen, a bread full of nuts and candied fruit, coated in powdered sugar. Music lovers might have visited the city’s …
    Continue Reading “Beware! Populism Might be Bad for Your Health”
    The post Beware! Populism Might be Bad for Your Health appeared first on Fair Observer. More

  • in

    Out of Many, Two: The American Art of Choosing Sides

    The US has always proclaimed its dedication to freedom of expression as the founding virtue of its vaunted “exceptionalism.” Children learn in civics classes that the only brake on freedom of expression is the irresponsible, antisocial act of crying “fire” in a theater. In such a culture, the question of censorship should theoretically never arise, …
    Continue Reading “Out of Many, Two: The American Art of Choosing Sides”
    The post Out of Many, Two: The American Art of Choosing Sides appeared first on Fair Observer. More

  • in

    Can India and Nepal Find a Path to Peaceful Coexistence?

    When Indian Foreign Secretary Harsh Vardhan Shringla arrived in Kathmandu in late November, he did something that would have seemed impossible just a few months earlier. After landing at Tribhuvan International Airport, instead of continuing to inflame rhetoric over the bitter territorial dispute that had engulfed the two neighbors, he spoke in Nepali about cooperation and connectivity between the two nations. His visit, and the manner of his address, was in sharp contrast to the acidic barbs that had been thrown between the two nations just a few months ago.

    Following Shringla’s trip came the news that Nepal’s foreign minister, Pradeep Gyawali, would make an official visit to New Delhi in December. While this trip was delayed, Gyawali later headed to New Delhi on a three-day state visit in mid-January. Gyawali’s trip, alongside rumors of a potential future trip by Nepali Prime Minister K. P. Sharma Oli, was to be another significant step in the resetting of ties that had been all but severed over the Lipulekh territorial dispute.

    China-India Clash Wakes Up Tibet’s Ghost of Independence

    READ MORE

    Yet hopes for a resumption of strong bilateral relations were severely disrupted when on 21st December when Oli abruptly dissolved parliament, citing a need to seek a fresh mandate amidst rumored upcoming vote of no confidence. In the days that have followed Oli’s highly controversial decision, political attention has been focused solely on who will be taking over the office after Nepal’s new elections to be held in April and May this year. This new political crisis has thrown plans to resolve India and Nepal’s border disputes into disarray.

    Self-Destructive Cycle

    Earlier this year, Lipulekh, a territory situated between the western border of Nepal and the Indian state of Uttarakhand that both India and Nepal claim as their own, became the center of a furious territorial row. After information came to light that a new road through the disputed territory had been inaugurated by India’s Defense Minister Rajnath Singh, Nepal rushed to publish a new state map with Lipulekh and other contested territories firmly inside its borders. A diplomatic standoff ensued. As the media provided daily blow-by-blow updates of the dispute, Indo-Nepal relations lay in tatters. This was only the most recent incident of a series of rows between the two neighboring countries.

    Back in late 2015, a few months after it was rocked by a devastating earthquake and after years of negotiations following the 2006 Comprehensive Peace Agreement (CPA), Nepal promulgated a new constitution. Yet instead of offering congratulations, India promptly blockaded the border for 135 days. In the eyes of many Nepalis, India highjacked an internal crisis and leveraged it for its own ends. Many Madhesi political parties that supported the blockade and now saw it spiral from a debate over citizenship concerns into an acrimonious debate about Indian influence in Nepal had to face the wrath of a public angry at their role in the blockade and the violation of the country’s sovereignty. 

    .custom-post-from {float:right; margin: 0 10px 10px; max-width: 50%; width: 100%; text-align: center; background: #000000; color: #ffffff; padding: 15px 0 30px; }
    .custom-post-from img { max-width: 85% !important; margin: 15px auto; filter: brightness(0) invert(1); }
    .custom-post-from .cpf-h4 { font-size: 18px; margin-bottom: 15px; }
    .custom-post-from .cpf-h5 { font-size: 14px; letter-spacing: 1px; line-height: 22px; margin-bottom: 15px; }
    .custom-post-from input[type=”email”] { font-size: 14px; color: #000 !important; width: 240px; margin: auto; height: 30px; box-shadow:none; border: none; padding: 0 10px; background-image: url(“https://www.fairobserver.com/wp-content/plugins/moosend_form/cpf-pen-icon.svg”); background-repeat: no-repeat; background-position: center right 14px; background-size:14px;}
    .custom-post-from input[type=”submit”] { font-weight: normal; margin: 15px auto; height: 30px; box-shadow: none; border: none; padding: 0 10px 0 35px; background-color: #1878f3; color: #ffffff; border-radius: 4px; display: inline-block; background-image: url(“https://www.fairobserver.com/wp-content/plugins/moosend_form/cpf-email-icon.svg”); background-repeat: no-repeat; background-position: 14px center; background-size: 14px; }

    .custom-post-from .cpf-checkbox { width: 90%; margin: auto; position: relative; display: flex; flex-wrap: wrap;}
    .custom-post-from .cpf-checkbox label { text-align: left; display: block; padding-left: 32px; margin-bottom: 0; cursor: pointer; font-size: 11px; line-height: 18px;
    -webkit-user-select: none;
    -moz-user-select: none;
    -ms-user-select: none;
    user-select: none;
    order: 1;
    color: #ffffff;
    font-weight: normal;}
    .custom-post-from .cpf-checkbox label a { color: #ffffff; text-decoration: underline; }
    .custom-post-from .cpf-checkbox input { position: absolute; opacity: 0; cursor: pointer; height: 100%; width: 24%; left: 0;
    right: 0; margin: 0; z-index: 3; order: 2;}
    .custom-post-from .cpf-checkbox input ~ label:before { content: “f0c8”; font-family: Font Awesome 5 Free; color: #eee; font-size: 24px; position: absolute; left: 0; top: 0; line-height: 28px; color: #ffffff; width: 20px; height: 20px; margin-top: 5px; z-index: 2; }
    .custom-post-from .cpf-checkbox input:checked ~ label:before { content: “f14a”; font-weight: 600; color: #2196F3; }
    .custom-post-from .cpf-checkbox input:checked ~ label:after { content: “”; }
    .custom-post-from .cpf-checkbox input ~ label:after { position: absolute; left: 2px; width: 18px; height: 18px; margin-top: 10px; background: #ffffff; top: 10px; margin: auto; z-index: 1; }
    .custom-post-from .error{ display: block; color: #ff6461; order: 3 !important;}

    The border blockade, deployed to pressure Nepal — already engulfed in violent anti-constitution protests — into making changes to the legislation that India deemed beneficial, halted Nepal’s access to vital goods, medicine and fuel. Even if New Delhi squarely denies its involvement, in the eyes of Nepali people, it is culpable. The blockade had a catastrophic effect on a country that was still struggling with the aftermath of the earthquake. As transport ground to a halt and hospitals were left unable to treat patients, anger on the streets of Kathmandu was palpable. Relations between the two sides seemed to have broken down irreparably.

    Yet just a few months after the blockade was eventually lifted, tensions calmed and, before long, relations returned to normal. This is the self-destructive cycle of Indo-Nepal relations: Just at the point when their relations seem in tatters, normalcy is quietly restored. These spats are as infuriating as they are detrimental. They are often damaging and often result from an incredibly poor foreign policy on both sides. Unfortunately, these political disputes come with a heavy price. For example, the 2015 border blockade exacted a hefty humanitarian cost by leaving millions of Nepalis without access to medicine, food or shelter. These disputes are more than diplomatic squabbles. Instead, they have highly damaging, and occasionally deadly, consequences, with little to no gain.

    Lipulekh is no exception. Now, following the two visits of Harsh Vardhan Shirngla and Pradeep Gyawali, relations were said to be almost back to normal. This appears to be yet another spat that disrupted India-Nepal relations for a few months, only to later burn out. In this case, a return to normalcy means a return to periodic disputes and reconciliation. But why do these spats take place in the first place?

    Foundations for a Positive Relationship

    At first glance, there appears to be little indication as to why relations between the two sides so frequently deteriorate. After all, they have much in common. It would not be untoward to say that neither Nepal nor India could be theoretically closer to any other country than each other. They share an unbroken open border both through the Terai lowlands in the south and in the hills to Nepal’s east and west. The two countries are linked by railheads, highways and a multitude of official and unofficial border crossings and trading posts, not to mention a new cross-border oil pipeline. So important is this connectivity that almost all of Nepal’s foreign imports and exports travel over the Indian border. In comparison, its northern Chinese border lies underutilized and poorly connected.

    It’s not just about physical connections. A wealth of bilateral development projects exists, as do deep military ties. Nepal’s rivers are the source of India’s largest basin systems, and Nepal and India have joint ownership over key dams, such as the huge Kosi barrage. The 1950 Indo-Nepal Treaty of Peace and Friendship ensures not just unhindered border access to both sides but also extraordinary close civil and political relations. Millions of Nepalis travel to India for education or work, while around 1 million Indians work in Nepal. 

    They share an immense number of socio-cultural linkages too. A large number of Nepalis understand Hindi, whereas the Nepali language is spoken by approximately 3 million Indians in states such as West Bengal, Sikkim and Assam. Strong religious links exist, with Indian Pandits serving as chief priests in Nepal’s Pashupatinath temple, and each day pilgrims from India throng to Nepal’s Hindu temples and to Lumbini, the birthplace of the Buddha.

    India played a vital role in Nepal’s own political history, with a myriad of exile political groups, including the Nepali Congress, being founded in Varanasi, Calcutta and Darjeeling between the 1920s and 1940s in order to oppose autocratic Rana rule, while many Quit India activists wanted by the Indian Imperial Police often sought sanctity inside Nepal’s borders. Given these factors, despite years of understanding and mutual cooperation, why do both sides fail to build a strong collaborative partnership?

    A Fractious Relationship

    While looking at a list of similarities, the two sides may be natural allies, yet such bonhomie is compromised by geopolitics. A quick glance at a map shows that Nepal is utterly surrounded by India, falling right in New Delhi’s line of vision, firmly inside its sphere of influence. Moreover, given Nepal’s sensitive Himalayan border with China, India sees it as natural, self-evident even, that it would have a say in the country’s foreign and domestic policy. Given the open border between the two sides, many in New Delhi perceive Nepal’s northern border to be India’s frontier. In other words, whatever happens in Nepal echoes in India.

    Embed from Getty Images

    The familiarity between the two sides leads many in India’s political parties, from the Indian National Congress to the ruling Bharatiya Janata Party (BJP), to believe they have the right to influence Nepal’s affairs, almost as if it were any other Indian state. Looking over Nepal’s recent history, India has always been the key external actor. India sees the events surrounding the fall of the Ranas and Nepal’s brief return to democracy in 1950 as something it can take credit for, as it can for the people’s movement in 1990 and the signing of the CPA in 2006. It isn’t just political movements where India feels its influence has been positive. It looks at the numerous hospitals, roads and hydropower plants it built in Nepal and feels a paternalistic sense of achievement. But this exercise of influence causes many issues. At times, this line of thinking borders on India believing that it understands Nepal’s best interests better than Nepal itself, which New Delhi sees as its smaller brother. This is considered highly condescending and patronizing in Nepal. 

    The methods through which India exerts its influence are also controversial, often clumsy and far from covert. In recent years, New Delhi has hidden its self-interest in an altruistic narrative about its concern for Madhesi groups, since 2007 portraying itself as their protector. While successive Nepali governments have indeed repeatedly failed to live up to responsibilities to Madhesi concerns over citizenship and the lack of equitable representation, given India’s own poor record of looking after its own minorities, it seems dubious that any action to protect Nepal’s Madhesi is taken purely out of a rights-based concern.

    This becomes particularly clear given India didn’t raise concerns about the treatment of the Madhesi prior to 2007, as a powerful Madhesi political block that India sought to influence was yet to emerge. India’s defense of Madhesis is politically expedient and explains why New Delhi hasn’t equally taken action to protect the more marginalized parts of Nepalese society. This absence of political benefit explains why India has yet to expend any political capital on Tharu land rights or the welfare of Lepchas or Chepangs. 

    Uncomfortable Truths

    India’s involvement in Nepal is also reflective of the sentiment that India has a right to interfere in Nepal’s affairs. This viewpoint is shared by a large sector of civil society and is widespread in the Indian media. As a result of decades-old comments by Sardar Patel, India’s first deputy prime minister, about the desire to incorporate Nepal and to annex Sikkim, many in India still tend to see the lines that delineate Nepal’s sovereignty as blurred. This belief is rooted so deeply that it has a particular hold on the media and among politicians.

    Occasionally, such sentiments are also fueled by Nepal itself. While numerous Madhesi politicians have openly courted New Delhi, mainstream politicians too have looked to India to influence domestic events in their own favor. The current prime minister, K. P. Oli, who in the last few years has been seen as an ardent nationalist strongly opposed to Indian interference, had very close relations with New Delhi during the negotiations of the 1996 Mahakali treaty. The Maoists and the monarchy have also been known to look to India for support, either tacit or explicit, during the 1996-2006 insurgency.

    However, being reminded of these uncomfortable truths doesn’t always sit well. Many in Nepal look on in anger at the talking heads proclaiming the right to meddle in its affairs, concerned that their own independence is not being respected. Any nuance or subtlety is lost, and debates that are better suited to calmer settings are being played out in the heated environs of the Indian media. This inflames sentient in Nepal, and soon, politicians are provoked into rash statements — and the two sides are at loggerheads again. 

    Embed from Getty Images

    Moreover, it appears that many in India are walking around unaware of the offense and anger they are creating. There is seemingly a lack of understanding in these circles that such actions toward Nepal, far from being seen as paternalistic benevolence, are highly unwelcome meddling. It is hard to believe that, had New Delhi anticipated the anger the border blockade would unleash, it would have undertaken such actions. Not only did Nepal not back down and make the changes to the constitution demanded by New Delhi — albeit some smaller less consequential changes were conceded — India’s public image in Nepal was shattered. A huge amount of political will had been spent, and New Delhi had little to show for it.

    Another example of this lack of self-awareness relates to the Lipulekh case, where Nepal’s decision to repeat its claim of ownership was written off by prominent Indian officials not as legitimate actions taken by a state, but rather as Nepal acting at the behest of China. Nepal is acutely aware of the massive power instability between itself and India, and as such, these comments were taken incredibly badly and only inflamed public sentiment. These recent spats have been further complicated by the arrival of the new narrative that Nepal is “pivoting to China,” clearly a sensitive point for India. This sensitivity is particularly acute when the Himalayas are involved; few in New Delhi have forgotten the humiliation India suffered here at the hands of China in 1962. 

    Admittedly Nepal itself has not helped matters. While accepting Chinese development aid, many politicians have signaled to New Delhi that its influence in Nepal is no more. Moreover, many Nepali politicians have become adept at placing blame on India at a time they themselves are facing accountability for malpractice or poor governance. The nationalist card is not only popular in Kathmandu, but it is also expedient at a time of political crisis. Anger against India is the political well that never runs dry. It is perhaps no surprise that relations between the two sides have broken down a number of times.

    Competing domestic factions within India that make a unified foreign policy harder to develop and implement further complicate relations. While the Communist Party of India and some in the Congress may be more favorable to Nepal, influential members of the BJP take a more combative approach.   

    Both sides need to be careful when it comes to border disputes. India has well over seven decades worth of militarized border disputes with Pakistan and China that have derailed chances of reconciliation. Recent clashes between the Indian and the Chinese army in Ladakh and the disputes in Arunachal Pradesh show how tense these stand-offs can become and how the inability to solve lingering issues will remain a bottleneck for the development of robust bilateral relations. Nepal and India need to calmly negotiate a fair and acceptable settlement for Lipulekh and the adjacent areas if there is to be any chance of long-term stability.

    The Fallout

    This damaging cycle of Indo-Nepal relations is hugely detrimental to both sides. Instead of stable long-term bilateral partnerships, the two countries are locked into a pattern of disputes. While relations never fail entirely — there is too much at stake and the two sides are too interconnected to risk any serious rupture — this is simply not good enough for two neighboring countries, let alone those that share an open border.

    The millions of people who live along and depend on the India-Nepal border do not have the luxury of breaking relations even temporarily over differences in political opinion. They are reliant on leaders in both countries to keep a working relationship on track and ensure they do not unjustly suffer as a result of political failures. The fact that relations will never break irreparably is of is small comfort to those paying the price for this fractious relationship. Without proper management, the livelihoods of those who coexist along the border are at stake. Just take the example of the hundreds of Nepalis stranded on the border due to COVID-19 travel restrictions, with no provision of food, water or shelter, and little information on what quarantine procedures await them if they were able to cross; thousands of Indian workers have also been unable to return home.

    Embed from Getty Images

    This diabolical situation was entirely avoidable had the two countries engaged in a systematic collaborative dialogue. This isn’t the only example of poor co-operation leaving citizens in the lurch. During the border blockade, the failure to secure a political solution to the constitutional protests saw local traders and residents take matters into their own hands. After suffering for months from a lack of trade, people were forced to dismantle the barriers themselves so that business and daily life could return to normal.

    For this damaging cycle to end, New Delhi needs to understand that all its actions will be under the microscope in Kathmandu. Hesitant citizens will be wary of any visit by Indian officials and be keenly aware of the potential to get a raw deal or be strong-armed into agreeing to something undesirable. Indian diplomats in Nepal need to tread carefully and be aware that they are viewed with skepticism, and that there will be little tolerance for blunders or poorly worded remarks that highlight the power imbalance between the two sides.

    Sensitivity and nuance, never a strong point for New Delhi, will go a long way. In Nepal, politicians seeking victory in the spring elections must also resist playing the highly damaging nationalist card and ramping up anti-India sentiment on their path to power. India is too easy a target for politicians not to swipe at for political gain, and such comments may well derail reconcilement. After all, as those in Singha Durbar know only too well, nationalism is never more politically expedient than in an election campaign.

    Hopes for a resumption of good relations were somewhat dashed after the fallout from Gyawali’s trip. While the trip was by no means a failure, it wasn’t a success either. No breakthrough was reached on border disputes or on the procurement of COVID-19 vaccines. Worst of all, despite Nepal spending three days trying to secure an audience with Narendra Modi, Gyawali flew back to Kathmandu amidst allegations of being “snubbed” by the Indian prime minister.

    The trip was supposed to be a step in the right direction. Had Gyawali been able to repeat Shringla’s success, there was a chance that perhaps India and Nepal could finally break the cycle of dispute that has plagued relations for decades. It appears that a resetting of ties will have to wait yet again.

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

  • in

    Domestic Enemies: The American Way of Life

    Newly elected President Joe Biden promised in his inaugural address to focus on achieving national unity. It is a customary theme of new presidents who wish to assure those who voted against them that their interests will not be neglected. But given the current political and social atmosphere in the United States, it will require more than rhetorical reassurance to achieve even a minimum sense of unity in a divided nation.

    Visible Cracks in the New American Order

    READ MORE

    CBS published the astonishing results of a poll conducted a week after the uprising at Capitol Hill on January 6. It revealed just how deeply alienated Americans feel. This may be nothing more than the immediate effect of the botched transition between Donald Trump’s and Joe Biden’s administrations. But CBS hints that it may be durable: “Of potential threats to their way of life — from foreign adversaries to economic forces to natural disasters — Americans today say the biggest threat comes from inside the country, from ‘other people in America, and domestic enemies.’”

    Today’s Daily Devil’s Dictionary definition:

    Way of life:

    The imaginary idea that because a population consumes — and often over-consumes — the same industrial products, its habits of consumption imply the harmonious existence of a common culture, converging values and shared goals.

    Contextual Note

    The most glaringly depressing statistic from the poll shows that 54% of Americans identify “other people in America” as “the biggest threat to America’s way of life.” Interestingly, the fear of “foreign threats” — a category that presumably includes terrorism — is highlighted by only 8% of those polled. Such findings demonstrate the effect of the culture wars that have been brewing for decades. Whether this will lead to open conflict, similar to the January 6 insurrection, or whether it simply settles into a pattern of increasingly irreparable degradation of human relations at work or in public places, nobody knows. In either case, the nation is facing a troubled future.

    .custom-post-from {float:right; margin: 0 10px 10px; max-width: 50%; width: 100%; text-align: center; background: #000000; color: #ffffff; padding: 15px 0 30px; }
    .custom-post-from img { max-width: 85% !important; margin: 15px auto; filter: brightness(0) invert(1); }
    .custom-post-from .cpf-h4 { font-size: 18px; margin-bottom: 15px; }
    .custom-post-from .cpf-h5 { font-size: 14px; letter-spacing: 1px; line-height: 22px; margin-bottom: 15px; }
    .custom-post-from input[type=”email”] { font-size: 14px; color: #000 !important; width: 240px; margin: auto; height: 30px; box-shadow:none; border: none; padding: 0 10px; background-image: url(“https://www.fairobserver.com/wp-content/plugins/moosend_form/cpf-pen-icon.svg”); background-repeat: no-repeat; background-position: center right 14px; background-size:14px;}
    .custom-post-from input[type=”submit”] { font-weight: normal; margin: 15px auto; height: 30px; box-shadow: none; border: none; padding: 0 10px 0 35px; background-color: #1878f3; color: #ffffff; border-radius: 4px; display: inline-block; background-image: url(“https://www.fairobserver.com/wp-content/plugins/moosend_form/cpf-email-icon.svg”); background-repeat: no-repeat; background-position: 14px center; background-size: 14px; }

    .custom-post-from .cpf-checkbox { width: 90%; margin: auto; position: relative; display: flex; flex-wrap: wrap;}
    .custom-post-from .cpf-checkbox label { text-align: left; display: block; padding-left: 32px; margin-bottom: 0; cursor: pointer; font-size: 11px; line-height: 18px;
    -webkit-user-select: none;
    -moz-user-select: none;
    -ms-user-select: none;
    user-select: none;
    order: 1;
    color: #ffffff;
    font-weight: normal;}
    .custom-post-from .cpf-checkbox label a { color: #ffffff; text-decoration: underline; }
    .custom-post-from .cpf-checkbox input { position: absolute; opacity: 0; cursor: pointer; height: 100%; width: 24%; left: 0;
    right: 0; margin: 0; z-index: 3; order: 2;}
    .custom-post-from .cpf-checkbox input ~ label:before { content: “f0c8”; font-family: Font Awesome 5 Free; color: #eee; font-size: 24px; position: absolute; left: 0; top: 0; line-height: 28px; color: #ffffff; width: 20px; height: 20px; margin-top: 5px; z-index: 2; }
    .custom-post-from .cpf-checkbox input:checked ~ label:before { content: “f14a”; font-weight: 600; color: #2196F3; }
    .custom-post-from .cpf-checkbox input:checked ~ label:after { content: “”; }
    .custom-post-from .cpf-checkbox input ~ label:after { position: absolute; left: 2px; width: 18px; height: 18px; margin-top: 10px; background: #ffffff; top: 10px; margin: auto; z-index: 1; }
    .custom-post-from .error{ display: block; color: #ff6461; order: 3 !important;}

    CBS pessimistically concluded that “Americans are bracing for more political violence, not just in the next week at Mr. Biden’s inauguration … but also over the coming years.” Some will now be heartened by the fact that no political violence occurred on the day of the inauguration. They may conclude that the fear of trouble “over the coming years” is equally exaggerated. But there are significant signs that things may get worse before they get better.

    At least one finding of the poll pointed in what seems a positive direction. Although 52% said they were “scared” about the future, nearly half of those polled (49%) said that they were still “hopeful.” That includes some who said they were both scared and hopeful. That might mean people are becoming vigilant and ready to take positive action. But being scared of one’s neighbors cannot bode well for the stability of society. Faced with the choice between “optimistic” and “pessimistic” about the next four years under Biden, 58% chose optimism. On the other hand, only 13% claimed to be “excited,” which should surprise no one, since Biden has never been known for his exciting personality. Somewhat more troubling is the fact that 26% claim to be angry, especially among people whose “way of life” includes owning guns, cultivating assertiveness and speaking up to get satisfaction for one’s demands.

    How likely is it that this feeling among so many people may produce serious conflict? And which are the groups most likely to upset the nation’s tranquility? The New York Times focuses on the threat from the conspiratorial far right, recently emboldened by Donald Trump’s presidency and apparently willing to rally behind any banner Trump may choose to unfurl in the next few years. The implications go beyond the US, since right-wing populism has become a global movement, also stimulated by Trump’s example. 

    Under the title “An ‘apocalyptically minded’ global far right,” The Times warns of the existence of “a web of diffuse international links.” That makes the internal threat appear even more threatening. The Times notes that, to assess the danger, in the coming weeks and months, officials will be closely observing this trend. Some expect a reinforcement of the already powerful security state. That may have the effect of aggravating the sense of threat rather than alleviating it.

    Historical Note

    Every American with a television remembers that Superman famously deployed his superstrength in the cause of “truth, justice and the American way.” By “the American way,” the authors of the TV series that appeared in the 1950s were apparently referring to the American way of life. But in the midst of the Cold War, it could also have meant “not the Soviet communist way.” In other words, quite simply, God-fearing capitalism.

    By the mid-20th century, the character of Superman — originally created in 1938 on the brink of the Second World War — came to resemble a supernatural religious crusader, a post-Christian incarnation of a new kind of divinity who had the material powers associated with an omnipotent god and who used them to defend the way of life of the faithful. He was both godlike — coming from the heavens — and committed to defending America’s culture and lifestyle.

    The faithful were those who believed in consumer capitalism, which had become the closest thing to an official national credo. Capitalism could achieve this status because it wasn’t a religion. It had no theology other than Adam Smith’s mysterious “invisible hand,” a concept that did in fact evoke associations with religion. Since capitalism lacked an overt theology, it could be adopted as a quasi-official religion to the extent that it didn’t violate the First Amendment proscription of an established religion. An established credo was okay so long as it wasn’t a religion.

    How did the vast majority of Americans implicitly acquire their faith in an “American way” that couldn’t even be defined? Edward Bernays may be the man to thank for that. He is credited with inventing the profession of public relations. Bernays was employed by President Woodrow Wilson, for whom he coined the phrase that has been used ever since to define a pillar of US interventionist foreign policy: “Make the world safe for democracy.” He also launched the idea of propaganda as a synonym for advertising.

    Embed from Getty Images

    But Bernays did much more than change the tone and ambition of US foreign policy. He created the modern American way of life by giving shape to the ultimate goal of capitalism: the realization of the utopia known as the consumer society. Bernays transformed the psychology of selling, which quite logically also transformed an economy that became increasingly dedicated to hooking consumers on convenience products. In his book “Propaganda,” he explained: “Those who manipulate this unseen mechanism of society constitute an invisible government which is the true ruling power of our country.”

    Americans in the 1950s assumed there was something called the American way of life and never questioned the unseen manipulators who had created it and imposed it on them, essentially through the entertainment media and the advertising that accompanied it. The 1960s witnessed the first challenge to the world of consumerism when the hippies revolted against the conformism that constituted the core of consumerism. But the power of the system Bernays had created was such that in the following decades the consumerist way of life would simply integrate the most marketable elements spawned by the counterculture.

    Half a century after the hippies, the consumer society faces a new challenge: the global menace of climate change. The COVID-19 pandemic has aggravated the sense that the consumerist way of life is rapidly decomposing. In its never-ending political assault on government regulations, the right wing in the US has consistently framed the question of liberties in consumerist terms. It is built on the freedom of choice, such as refusing energy-efficient light bulbs, and the freedom to pollute by maximizing the unbridled production of consumer goods.

    When neighbors see their neighbors as the enemy, the kind of problem-solving necessary to address global warming, economic inequity and other visible problems becomes impossible. But rather than encourage reflection, commercial media and social media prefer to incite citizens to focus on blaming those who don’t share their values and seeing them as a threat to their way of life.

    *[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 Daily Devil’s Dictionary on Fair Observer.]

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

  • in

    Sovereign Wealth Funds Bet Big on India

    Since the outbreak of COVID-19, bad news has dogged India on the economic front. By the end of the 2020-21 financial year, which begins on April 1 and ends on March 31, the country’s GDP is estimated to shrink by 7.7%, the biggest contraction since 1952. In the first quarter of the 2020-21 financial year, the economy contracted by a historic 23.9%.

    To put things in perspective, India has suffered its first contraction since the 1979-80 financial year. Then, India’s GDP shrunk by 5.2% because of a double whammy. First, the 1979 Iranian Revolution led to a doubling of crude oil prices, hurting an energy importer like India. Second, a severe drought led to crop failure, falling incomes and declining demand. The 2020-21 recession is worse than that of 1979-1980. In fact, India’s contraction is the second-worst in Asia after the Philippines, whose economy has contracted by 8.5%-9.5%.

    Green Shoots of Recovery

    In 2021, better news has trickled in. India’s manufacturing sector is rebounding. The Nikkei Manufacturing Purchasing Managers’ Index, compiled by IHS Markit, rose to 56.4 in December 2020, up from 56.3 in the previous month. Any figure over 50 signals growth, and manufacturing has now been increasing for five months. More importantly, India’s agricultural sector is expanding strongly. In fact, it grew even during the peak of the COVID-19 pandemic. 

    Deloitte estimates that “India may have turned toward the road to recovery.” It bases its judgment on recent high-frequency data. India has been fortunate to have lower infection and fatality rates than countries like the US or the UK. It has also launched the world’s biggest coronavirus vaccine drive. This should improve consumer and business confidence and boost economic recovery.

    Why Is Foreign Investment Flooding Into India?

    READ MORE

    The International Monetary Fund (IMF) is predicting a return to growth in 2021 as are investment banks and large funds. The Indian government is bullishly claiming that India can achieve double-digit growth through increased digital services and the expansion of its manufacturing base. This would be driven by growing demand in the rural sector, the youth and India’s aspirational middle class.

    Even if the government claims might be optimistic, many companies and investors have bought into the India growth story. In particular, sovereign wealth funds (SWFs) have been betting on India. In 2020, they invested a record $14.8 billion in the country. In the same period, they invested only $4.5 billion in China, meaning that SWF investment in India is three times that of China. What is going on?

    Dark Clouds in Sunny Skies

    To understand why SWFs are turning to India, we have to understand their incentives. These funds do not answer to investors who crave quarterly or yearly or even five-year returns. As custodians of a nation’s wealth, SWFs are long-term investors. In their view, India is operating from a lower base than China. So, India’s growth prospects are higher than China’s as it plays catch-up. 

    Furthermore, unlike venture capital or private equity players, SWFs place a high premium on the long cycle factors like political stability, social cohesion and geopolitical importance. As a robust democracy with many decades of experience in the peaceful transfer of power, India is increasingly attractive in a volatile, complex and ambiguous world. China’s actions in Hong Kong and Xinjiang have shaken up many SWFs that are choosing to park their money in India.

    There is another reason for SWFs to invest in India. They agree with IMF Managing Director Kristalina Georgieva, who praised India for taking “very decisive action, very decisive steps to deal with the pandemic and to deal with [its] economic consequences.” Like her, they are impressed by New Delhi’s appetite for structural reforms and the surprising competence India’s much-maligned government has demonstrated during the pandemic.

    .custom-post-from {float:right; margin: 0 10px 10px; max-width: 50%; width: 100%; text-align: center; background: #000000; color: #ffffff; padding: 15px 0 30px; }
    .custom-post-from img { max-width: 85% !important; margin: 15px auto; filter: brightness(0) invert(1); }
    .custom-post-from .cpf-h4 { font-size: 18px; margin-bottom: 15px; }
    .custom-post-from .cpf-h5 { font-size: 14px; letter-spacing: 1px; line-height: 22px; margin-bottom: 15px; }
    .custom-post-from input[type=”email”] { font-size: 14px; color: #000 !important; width: 240px; margin: auto; height: 30px; box-shadow:none; border: none; padding: 0 10px; background-image: url(“https://www.fairobserver.com/wp-content/plugins/moosend_form/cpf-pen-icon.svg”); background-repeat: no-repeat; background-position: center right 14px; background-size:14px;}
    .custom-post-from input[type=”submit”] { font-weight: normal; margin: 15px auto; height: 30px; box-shadow: none; border: none; padding: 0 10px 0 35px; background-color: #1878f3; color: #ffffff; border-radius: 4px; display: inline-block; background-image: url(“https://www.fairobserver.com/wp-content/plugins/moosend_form/cpf-email-icon.svg”); background-repeat: no-repeat; background-position: 14px center; background-size: 14px; }

    .custom-post-from .cpf-checkbox { width: 90%; margin: auto; position: relative; display: flex; flex-wrap: wrap;}
    .custom-post-from .cpf-checkbox label { text-align: left; display: block; padding-left: 32px; margin-bottom: 0; cursor: pointer; font-size: 11px; line-height: 18px;
    -webkit-user-select: none;
    -moz-user-select: none;
    -ms-user-select: none;
    user-select: none;
    order: 1;
    color: #ffffff;
    font-weight: normal;}
    .custom-post-from .cpf-checkbox label a { color: #ffffff; text-decoration: underline; }
    .custom-post-from .cpf-checkbox input { position: absolute; opacity: 0; cursor: pointer; height: 100%; width: 24%; left: 0;
    right: 0; margin: 0; z-index: 3; order: 2;}
    .custom-post-from .cpf-checkbox input ~ label:before { content: “f0c8”; font-family: Font Awesome 5 Free; color: #eee; font-size: 24px; position: absolute; left: 0; top: 0; line-height: 28px; color: #ffffff; width: 20px; height: 20px; margin-top: 5px; z-index: 2; }
    .custom-post-from .cpf-checkbox input:checked ~ label:before { content: “f14a”; font-weight: 600; color: #2196F3; }
    .custom-post-from .cpf-checkbox input:checked ~ label:after { content: “”; }
    .custom-post-from .cpf-checkbox input ~ label:after { position: absolute; left: 2px; width: 18px; height: 18px; margin-top: 10px; background: #ffffff; top: 10px; margin: auto; z-index: 1; }
    .custom-post-from .error{ display: block; color: #ff6461; order: 3 !important;}

    On December 31, India’s health ministry revealed that the country’s COVID-19 recovery rate was an astonishing 96.04%. This is one of the highest recovery rates in the world. Despite the economic contraction, the government has fed hundreds of millions, brought in much-needed economic reforms and kept the budget deficit down to reasonable levels. At a time when countries have sunk into unsustainable debt traps, India presents a relatively better investment opportunity for SWFs with strong prospects of sustainable, long-term growth.

    There are two dark clouds threatening this sunny economic scenario. First, India faces the twin external threat of China and Pakistan. Both these nuclear powers make territorial claims against India. They have been ratcheting up rhetoric, and tensions are running high. Even at the height of a bitterly cold winter, Indian and Chinese troops have clashed yet again on the border. Once the Himalayan snows start melting in late spring and early summer, troops could start clashing and a military conflict might ensue. This would inflict a tremendous economic setback in the short run. If India is able to defend its territory, then its economy would benefit in the long term. However, there is no guarantee how such a conflict might play out, and this remains a great risk to the economy.

    Second, India faces the threat of domestic unrest. The ruling Bharatiya Janata Party has had to deal with numerous protests since its reelection in 2019. The Citizenship Amendment Act triggered protests in many cities across the country. They died down as the pandemic spread. Currently, farmer protests are rocking New Delhi on Republic Day. In a country as large and diverse as India, threats of more protests and unrest are never far away. As long as the government can contain protests, they remain immaterial. However, a breakdown in social cohesion would damage India’s growth story.

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

  • in

    Conspiracy Pushers: QAnon’s Radical Unreality

    “Where we go one, we go all.” This tagline from the now infamous QAnon conspiracy has been seared into our hive minds since the insurrectionist events of January 6 on Capitol Hill. The question now becomes, where do Q’s followers go from here? Their “coming storm” prophesied that Donald Trump would seize power, overthrow the deep state and arrest a cabal of Satan-worshipping, pedophilic Democrats. Luckily for everyone else, this storm was little more than an afternoon drizzle. However, the threat from these conspiracies remains.

    Flashpoint America: What the Hell Is Happening?

    READ MORE

    Much has been written about the radicalization of QAnon adherents since the coup attempt, and there is an available body of work for anyone brave enough to wade into this conspiracy pool. There have also been extensive follow-up attempts to dissect the QAnon mindset since President Biden’s inauguration, given Donald Trump’s failure to deliver on the promises made by Q.

    Turbulence Ahead

    While some are taking a certain satisfaction in watching the QAnon worldview crumble, the situation is poised to grow even more complex. This presents an even deeper challenge to the long-term social and political health of the United States. Observers who are commenting on the disillusionment of QAnon communities now that Biden’s presidency has become a reality are missing the point, since reality was never the point to begin with. The point has always been escapism — absconding into a world of fan fiction where the entanglements of our political and economic lives can be distilled down to memes, anonymous “transmissions” and a binary choice between good and evil, filled with legions of heroes and villains. None of this will be abandoned any time soon, let alone gracefully.

    Embed from Getty Images

    Because of this, there is deep turbulence ahead, namely what to do with potentially millions of people who now adhere to an untethered ideology. These digital communities are not going to vanish, nor are they simply going to recognize the absurdity of their ways and come back to the mainstream. Doing so would undermine the investment they have made in the conspiracy that has consumed them, forcing them to acknowledge that their estrangement from family, friends and colleagues is actually of their own making. There is also another dimension, one that goes even deeper. Letting go of the conspiracy and admitting that their beliefs are misplaced is to also acknowledge that they allowed themselves to be deceived and manipulated.

    Having this expectation is a heavy lift and one that cannot be expected without programs or mechanisms that support personal disengagement. Arab countries battling extremism have pioneered these kinds of deradicalization programs and have been running them for years. Unfortunately, programs like this that are currently available in the US do not exist on the scale needed to be effective. What we are left with is much more rudimentary and reactive, allowing us to only assess the pathways these individuals are taking and how their digital communities are supporting their radicalization.

    There are five main QAnon archetypes currently in play. Each has a role in either disrupting or scaling the radicalization behind the next version of the conspiracy. The first group are those who can be reached. These will be individuals who understand they unwittingly fell into something and are looking for a way back to their lives pre-QAnon with a minimal amount of embarrassment. The second group are those still consuming the conspiracy but who are negotiating their belief system within it as Biden settles into his presidency. The cracks have started to form for these individuals, and it could go one of two ways: Either they are reached and brought back into normative political and social life or they will evolve in the direction of the new conspiracy.

    The third group are the enablers who are still committed to trafficking in conspiracy regardless of the form it might be taking. They are the content creators, communicators, logistical planners and recruiters. They have influence within their digital communities, which they will protect by espousing whatever version of the conspiracy keeps them most relevant.

    The fourth group are the ideological drivers of the conspiracy, those not only with the most followers and content but those capable of articulating the most radical aspects of the conspiracy. Many of the previous ideological leaders of QAnon have dropped out due to a loss of legitimacy within these digital communities. But in doing so, they have left behind a vacuum. This space is now being filled by opportunists who need to make even more outlandish claims as a way of establishing their bona fides to the millions of followers looking for what comes next, accelerating the potential for radicalization.

    Turn to Anger

    The fifth group is the most worrisome and where intelligence gatherers and federal law enforcement will need to be most focused. These are individuals who recognize the conspiracy was a lie, but still maintain all of their underlying resentments, specifically white grievance. This will turn to anger, which can be easily exploited, not just because they realize QAnon was a lie, but because they believe they were abandoned by the same politicians who told them the election was stolen. These individuals will be looking for new digital communities that are less keen on fan fiction and more prone to direct action as a way of exercising their grievances. They will be prime targets for white supremacist groups and militias who are looking to recruit, plan and engage in violent action. The recalibration of these relationships is already ongoing.

    Believing the followers of QAnon have lost faith in the conspiracy in any meaningful way is naive. Their reality is flexible. Spend a few minutes in any QAnon Telegram channel, and you can see that the unreality of their beliefs is only accelerating. A new conspiracy is already claiming that Trump will become president again on March 4 under a “restored republic,” which links to a belief that the US was dissolved in the 19th century. Individuals who have retreated from normative social and political life into their conspiracy-driven digital communities will continue to find ways to thrive because they have no other choice. Their emotional investment in the conspiracy has become their personal identity. This is only going to make the conspiracy more dangerous and the radicalization stronger. 

    The FBI cannot arrest its way out of this problem, nor can the tech companies be counted on to regulate their own platforms in a way that addresses the complexity of these vast challenges. While radicalization is nothing new, it is new in the American context. This is a knowledge frontier in its infancy and one we are wholly unprepared for — for all the reasons that led us to this place to begin with. If left unaddressed, we might soon find ourselves in a position where our unreality has indeed become our reality.

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

  • in

    A Tale of Two Historical Adversaries

    As Joe Biden settles into the White House and the Democrats in Congress play out the final act of their formal confrontation with the man now known as Citizen Trump, observers will begin focusing on another drama, one that the Democrats and their preferred media have obsessively elevated to the top of the hierarchy of concerns at the very moment when a global pandemic has undermined the health of humanity and a climate crisis threatens the health of the planet. What is that drama? Russia’s role in the great SolarWinds hack.

    Much of the credibility of the Democratic Party hinges on justifying what increasingly resembles a conspiracy theory designed to offer the Democrats psychological thrills comparable to those that QAnon offers to Republicans. The difference is that, apart from Citizen Trump himself, the members of the Republican Party obsessed by QAnon are mostly marginal personalities, such as newly elected Representatives Marjorie Taylor Greene and Lauren Boebert. In contrast, proponents of the Democratic conspiracy theory include, no less, Hillary Clinton and Nancy Pelosi. They appear to believe that Trump not only commanded the attempt to occupy the Capitol, but coordinated the operation with Vladimir Putin.

    President Joe Biden has not personally embraced the Democratic obsession with Russia. As the elected president and now leader of the party, Biden will have to clarify the state of play on the Russia question that has come to define the party during its four years of opposition to Donald Trump. Paradoxically, though deemed a puppet of President Putin, Trump’s “America First” orientation seriously damaged the theoretically cordial relations that existed since the end of the Cold War between Russia and the United States. An objective observer could only conclude that Trump may have appreciated Putin’s style, but — apart from fragilizing NATO, which he did for purely financial reasons — his policies did little to accommodate Putin’s politics.

    Who Is Nancy Pelosi Enabling?

    READ MORE

    The Democrats want Biden to flamboyantly punish Russia for every real or imaginary sin they can think of, if only to avenge Hillary Clinton’s defeat in 2016. The problem is that the first order of business on the new president’s agenda is not about punishment, but collaboration. Biden must rectify one of the most egregious errors made by Trump, who refused to extend the New START — the last nuclear treaty between the US and Russia remaining in effect, which expires this year.

    Most reasonable people would like to see the risk of nuclear war reduced even if it cannot be eliminated. Democrats, unlike Trump, consider themselves reasonable people and, therefore, are intent upon extending the expiring treaty. The New York Times makes this clear while worrying that the question is more complex than simply reaching an agreement: “While Mr. Biden has long favored the extension, there was debate among his top aides about how long it should be. He chose the most time available under the treaty’s terms, in hopes … of preventing a nuclear arms race at a time the new president expects to be in a state of near-constant, low-level competition and confrontation with Moscow around the world — and particularly in cyberspace.”

    Jen Psaki, the White House press secretary, reduced this complex reasoning to something the media could understand: “This extension makes even more sense when the relationship with Russia is adversarial as it is at this time.”

    Today’s Daily Devil’s Dictionary definition:

    Adversarial:

    Not in total conformity with a powerful nation’s expectations and requirements and therefore susceptible to being severely punished militarily or economically.

    Contextual Note

    The quandary Biden is now facing has nothing to do with nuclear security. It concerns the theme The Times and other media have been pushing since early December: the SolarWinds cyberattack now thought to have affected at least 250 US federal agencies and businesses. To this day, the experts have been left guessing about who did it and to what end. The Democrats and, of course, The Times immediately proclaimed that it was Russia. Proof is never required because, as most Democrats now believe, hacking is an integral part of the Russian genome (bad science is often brought in to bolster this kind of specious reasoning).

    To make the case, all the pundits require is finding someone in the government or the “serious” media to affirm that, whatever the complaint, they consider it “likely” that the Russians were responsible. CNN, for example, correctly designates “The computer intrusion campaign that has been linked to Russia.” This phrase is designed to make readers assume that Russia did it. But “linked to” means nothing more than speculated about. Anyone versed in the basics of criminology should understand that, even when there is a “likely” suspect, if no concrete proof exists to accuse them and the investigation has failed to unearth a clue as to the motive, taking legal action against that suspect simply makes no sense and would be considered an abuse of justice.

    The frustration of not being able to prove one’s suspicions marks the point at which imaginary genetic reasoning can easily take over. It also opens the door to geopolitical conspiracy theories. What precise instructions, we must ask, did Vladimir Putin give to Donald Trump in the telephone conversation Hillary Clinton believes the two men had on January 6, as the assembled troops of the colluding presidents were assaulting the Capitol?

    Historical Note

    The Times rightly points out that the suspicion of Russia has complicated Joe Biden’s decision-making. It “puts Mr. Biden in the awkward position of seeking to extend the nuclear treaty — which Mr. Putin has already said he is willing to renew — while very publicly discussing the need to make Russia pay a price for the hacking.” In serious criminology, attempting to evaluate the “price to pay” for a crime when the very nature of the crime is in doubt would be extremely unprofessional. It is tantamount to conducting the trial before making the charges. That has, of course, become a kind of a historical norm in US foreign policy. From the Gulf of Tonkin incident to waging war on Afghanistan instead of targeting the likely criminal organization, al-Qaeda, American politicians have consistently botched their criminology to precipitate a war.

    .custom-post-from {float:right; margin: 0 10px 10px; max-width: 50%; width: 100%; text-align: center; background: #000000; color: #ffffff; padding: 15px 0 30px; }
    .custom-post-from img { max-width: 85% !important; margin: 15px auto; filter: brightness(0) invert(1); }
    .custom-post-from .cpf-h4 { font-size: 18px; margin-bottom: 15px; }
    .custom-post-from .cpf-h5 { font-size: 14px; letter-spacing: 1px; line-height: 22px; margin-bottom: 15px; }
    .custom-post-from input[type=”email”] { font-size: 14px; color: #000 !important; width: 240px; margin: auto; height: 30px; box-shadow:none; border: none; padding: 0 10px; background-image: url(“https://www.fairobserver.com/wp-content/plugins/moosend_form/cpf-pen-icon.svg”); background-repeat: no-repeat; background-position: center right 14px; background-size:14px;}
    .custom-post-from input[type=”submit”] { font-weight: normal; margin: 15px auto; height: 30px; box-shadow: none; border: none; padding: 0 10px 0 35px; background-color: #1878f3; color: #ffffff; border-radius: 4px; display: inline-block; background-image: url(“https://www.fairobserver.com/wp-content/plugins/moosend_form/cpf-email-icon.svg”); background-repeat: no-repeat; background-position: 14px center; background-size: 14px; }

    .custom-post-from .cpf-checkbox { width: 90%; margin: auto; position: relative; display: flex; flex-wrap: wrap;}
    .custom-post-from .cpf-checkbox label { text-align: left; display: block; padding-left: 32px; margin-bottom: 0; cursor: pointer; font-size: 11px; line-height: 18px;
    -webkit-user-select: none;
    -moz-user-select: none;
    -ms-user-select: none;
    user-select: none;
    order: 1;
    color: #ffffff;
    font-weight: normal;}
    .custom-post-from .cpf-checkbox label a { color: #ffffff; text-decoration: underline; }
    .custom-post-from .cpf-checkbox input { position: absolute; opacity: 0; cursor: pointer; height: 100%; width: 24%; left: 0;
    right: 0; margin: 0; z-index: 3; order: 2;}
    .custom-post-from .cpf-checkbox input ~ label:before { content: “f0c8”; font-family: Font Awesome 5 Free; color: #eee; font-size: 24px; position: absolute; left: 0; top: 0; line-height: 28px; color: #ffffff; width: 20px; height: 20px; margin-top: 5px; z-index: 2; }
    .custom-post-from .cpf-checkbox input:checked ~ label:before { content: “f14a”; font-weight: 600; color: #2196F3; }
    .custom-post-from .cpf-checkbox input:checked ~ label:after { content: “”; }
    .custom-post-from .cpf-checkbox input ~ label:after { position: absolute; left: 2px; width: 18px; height: 18px; margin-top: 10px; background: #ffffff; top: 10px; margin: auto; z-index: 1; }
    .custom-post-from .error{ display: block; color: #ff6461; order: 3 !important;}

    The Times article grudgingly admits that the SolarWinds hack was more likely traditional spying rather than the “act of war” some politicians have been shouting about. Reuters quotes “U.S. Senator Dick Durbin calling it ‘virtually a declaration of war’ and U.S. Senator Marco Rubio saying that ‘America must retaliate, and not just with sanctions.’” Does the fact that if may have been spying rather than political or military aggression make it excusable? After all, everybody spies.

    The true criminologist might reframe the investigation by asking two basic questions. The first is, who among all possible suspects is really good at sophisticated cyber spying? The second is, what data was being breached and why would the perpetrator be interested in it? To the first question, there are several serious leads, including Russia. But the list also includes China (Trump’s claim), Israel and the US. The last two have been eliminated because they are not adversaries of the US. But is spying only adversarial? Our criminologist knows that, despite official denials, the NSA spies on Americans. So do Facebook and Google. What those two platforms glean appears to be valuable.

    Cyber spying feeds the world of Big Data, essential for managing economies and economic relations. Israel, perhaps the world’s most sophisticated purveyor of cyber spying, spies on any target of interest, as an Al Jazeera documentary recently revealed. If the investigators had an idea of the purpose of the spying, the criminologists might have a clearer idea about which of the many suspects are truly “likely.”

    The Times’ characterization of the relationship with Russia as a “near-constant, low-level competition and confrontation” is an interesting innovation that may reveal something about the Democrats’ conception of psychological warfare. If the glorious Cold War of the past, when the Soviet Union looked like an empire, could be accurately characterized as constant, high-level competition and confrontation, then the new Cold War still focused on Russia represents a certain form of progress. “Constant” has become “near-constant” and “high-level” has become low-level. That should be reassuring.

    The other question to ask about the Biden administration is this: Will the effort at constant, high-level confrontation now be directed at China? And can the declining US empire simultaneously handle two cold wars alongside a potential civil war at home?

    *[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 Daily Devil’s Dictionary on Fair Observer.]

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

  • in

    Netflix still several steps ahead in strategy for wooing subscribers

    Only Frank Underwood could amass as much power in such a short space of time. Nearly eight years after Netflix used House of Cards as the launch of its global empire, the streaming service announced last week that it now had more than 200 million subscribers. The pandemic has hastened the company’s transformation from a debt-laden digital upstart into an essential part of the TV landscape in homes across the world.In 2013, when Netflix’s first original series made its debut, the company had 30 million (mostly US) subscribers. This was six years after it moved from being a DVD-by-post business to a streaming pioneer. Since then it has added 170 million subscribers in more than 190 countries and its pandemic-fuelled results last week sent Netflix’s market value to an all-time high of $259bn.Last year proved to be the best in the company’s history, even as a new wave of deep-pocketed rivals attempt to deprive it of its streaming crown. Accustomed to operating in battle mode, Netflix added a record 37 million new subscribers as lockdown prompted viewers to alleviate housebound cabin fever with fare including The Crown, Bridgerton and The Queen’s Gambit.Last week it reported that in 2020 the amount it earned from subscribers exceeded what it spent – to the tune of $1.9bnBut Netflix’s pioneering low-price, binge-watching approach to driving growth has come at a cost. Year after year the need to spend billions on ever-increasing numbers of films and TV shows in order to keep and attract subscribers has weighed on its balance sheet, if not its share price. With a Netflix subscription a fraction of the cost of a traditional pay-TV service, average revenue per user is low. This is great for growth but means the company has to keep on topping up its content budget to fulfil its binge-watching promise to fans. A few billion here and there has spiralled to $16bn in long-term debt and a further $19bn in “obligations” – essentially payments for content spread out over a number of years.Analysts have been split over Netflix’s grow-now-pay-for-it-later strategy, but the company finally appears to have proved the naysayers wrong. There was a symbolic announcement in its results last week: it reported that in 2020, free cashflow was positive – which means that the amount it earns from subscribers exceeds what it spends on content, marketing and other costs – to the tune of $1.9bn.Part of the reason for this was that Netflix’s content spend fell – from $14bn to $12bn – as a result of production stoppages caused by lockdowns, but it was a turning point nevertheless. It has taken 23 years since its humble beginnings as a DVD rental company in California for the Netflix machine to reach the point of sustainability.The firm’s decision in 2013 to invest heavily in original productions has proved critical – and prescient. It sensed, correctly, that its success would prompt the suppliers that it was licensing shows from to eventually keep them for their own services. In the past 18 months, HBO Max, Sky-owner Comcast’s Peacock and AppleTV+ have joined longer-term rival Amazon Prime Video in vying for subscribers.Reed Hastings, Netflix’s co-chief executive, acknowledges this second wave in the streaming wars, particularly noting the “super-impressive” performance of Disney+, which has become the third global force in streaming behind Amazon. In just 14 months since its launch, the service, powered by franchises including Star Wars TV spin-off The Mandalorian, Marvel films and Frozen 2, has amassed 87 million subscribers four years sooner than forecast. Last month, Walt Disney+ announced a doubling of its content budget and tripled its forecast of subscriber numbers by 2024.However, new rivals have yet to dent the dominance of Netflix, which reported adding 8.5 million subscribers in the fourth quarter, and revealed that 500 TV titles were in the works and a record 71 films would premiere this year. Some doubters had raised concerns that Netflix’s debt-fuelled growth was a financial house of cards. But its foundations look solid now.Nissan’s ‘edge’ over rivals is no vote for BrexitLeaving the EU without a deal would have been an act of economic self-sabotage nearly unrivalled by a developed economy. Carmakers’ relief that a deal was reached on Christmas Eve was palpable. Nissan’s glee became clear last week, with chief operating officer Ashwani Gupta repeatedly declaring that the Brexit deal had given the Japanese carmaker a “competitive advantage”.Nissan had looked through the complex new rules of origin governing trade between the UK and the EU. Parts and finished cars that cross the Channel will not attract tariffs if a certain proportion of their components are from either the UK or the EU. Nissan’s cars already comply with the rules.Crucially, this applies to high-value batteries, which a partner company builds in Sunderland, in a factory next door to Nissan’s. Other companies are not so well-placed and must rely instead on imports from east Asia. For them the Brexit deal has started a scramble to secure batteries from Europe – if they want to sell into the UK – or hope that untested UK companies can build gigafactories to supply them.However, the Japanese carmaker’s statement should not be mistaken for a “vote of confidence”, as Boris Johnson managed to do. Gupta acknowledged that the UK’s departure from the EU had brought new costs, though these were “peanuts” for a company of Nissan’s scale. They may not be so negligible for exporting entrepreneurs, a breed that will probably become rarer as non-tariff barriers increase for would-be traders with the EU.Furthermore, “competitive advantage” is a double-edged compliment. Nissan will gain on UK and EU rivals which do not source batteries locally. Even if it is less of a burden than those carried by competitors, a handicap – in this case increased trade friction with the UK’s biggest market – is still a handicap.A new president is not a panaceaIt would be a mistake to allow the relief that has accompanied Joe Biden’s victory in the US presidential election to become something close to euphoria and, consequently, freight the new US president with expectations that are unachievable.The next decade is looking troubled and fractious even now that Donald Trump’s hand is no longer on the tiller of the world’s largest and most powerful economy. From a global perspective, there is the assessment of climate economist Lord Stern that the next 10 years will be crucial if we are to reach net zero carbon emissions by 2050.China, for 30 years a convenient supplier of low-cost goods to the global economy, is becoming more authoritarian and looking to use its spheres of influence in Asia and Africa to quell complaints by international bodies about the way it treats Uighur Muslims and Hong Kong protesters. To make matters worse, populations in the west and in China are ageing and struggling to provide a decent standard of living for younger members of society.In the UK, Brexit reintroduces a welter of red tape into the trading arrangements this country has with its biggest commercial partner, the EU, and will depress average household incomes over a long period. So despite the relief in many corners of the globe that greeted Biden’s inauguration, there is reason to worry.But there are grounds for hope too. The pressure to address the climate emergency is growing rapidly and politicians all over the world are at last taking notice. The 26th UN climate change conference in Glasgow, scheduled for November, could mark a seismic shift in action. And Biden showed how inclusive he plans to be with his roster of inauguration acts, from the stalwart Republican country singer Garth Brooks to 22-year-old African American poet Amanda Gorman.It was telling that Biden said he wanted to build bridges. It will be difficult, but on the issue of climate change, if on nothing else, that must include China. More