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    What Would Helsinki 2.0 Look Like Today?

    The European security order has broken down. You might think that’s an overstatement. NATO is alive and well. The Organization for Security and Cooperation (OSCE) in Europe is still functioning at a high level.

    Of course, there’s the possibility of a major war breaking out between Russia and Ukraine. But would Russian President Vladimir Putin really take such an enormous risk? Moreover, periodic conflicts in that part of the world — in Ukraine since 2014, in Georgia in 2008, in Transnistria between 1990 and 1992 — have not escalated into Europe-wide wars. Even the horrific bloodletting of Yugoslavia in the 1990s was largely contained within the borders of that benighted former country, and many of the Yugoslav successor states have joined both the European Union and NATO.

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    So, you might argue, the European security order is in fine shape, and it’s only Putin who’s the problem. The United States and Europe will show their resolve in the face of the Russian troops that have massed at the border with Ukraine, Putin will accept some face-saving diplomatic compromise and the status quo will be restored.

    Even if that were to happen and war is averted this time, Europe is still in a fundamental state of insecurity. The Ukraine conflict is a symptom of this much deeper problem.

    The current European security order is an overlay of three different institutional arrangements. NATO is the surprisingly healthy dinosaur of the Cold War era with 30 members, a budget of $3 billion and collective military spending of over a trillion dollars.

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    Russia has pulled together a post-Cold War military alliance of former Soviet states, the Collective Security Treaty Organization (CSTO), that is anemic by comparison with a membership that includes only Armenia, Belarus, Kazakhstan, Kyrgyzstan and Tajikistan. Instead of expanding, the CSTO is shrinking, having lost Azerbaijan, Georgia and Uzbekistan over the course of its existence.

    And then there’s the Helsinki framework that holds East and West together in the tenuous OSCE. Neither Russia nor its military alliance was able to prevent the march of NATO eastward to include former Soviet republics. Neither NATO nor the OSCE was able to stop Russia from seizing Crimea, supporting a separatist movement in eastern Ukraine or orchestrating “frozen conflicts” in Georgia and Moldova.

    Presently, there are no arms control negotiations between East and West. China became Russia’s leading trade partner about a decade ago, and the United States and European countries have only fallen further behind since. Human rights and civil liberties are under threat in both the former Soviet Union and parts of the European Union.

    So, now do you understand what I mean by the breakdown of the European security order? The Cold War is back, and it threatens once again to go hot, if not tomorrow then perhaps sometime soon.

    So, yes, Ukrainian sovereignty must be defended in the face of potential Russian aggression. But the problem is much bigger. If we don’t address this bigger problem, then we’ll never really safeguard Ukraine, deal with Russia’s underlying concerns of encirclement or tackle the worrying militarization of Europe. What we need is Helsinki 2.0.

    The Origins of Helsinki 1.0

    In the summer of 1985, I was in Helsinki after a stint in Moscow studying Russian. I was walking down one of the streets in the Finnish capital when I came across a number of protesters holding signs.

    “Betrayal!” said one of them. “Appeasement!” said another. Other signs depicted a Russian bear pressing its claws into the then-Baltic republics of Lithuania, Latvia and Estonia.

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    I’d happened on this band of mostly elderly protesters outside a building where dignitaries from around the world had gathered to celebrate the 10th anniversary of the Helsinki Accords. At the time, I had only a vague understanding of the agreement, knowing only that it was a foundational text for East-West détente, an attempt to bridge the Iron Curtain.

    As I found out that day, not everyone was enthusiastic about the Helsinki Accords. The pact, signed in 1975 by the United States, Canada, the Soviet Union and all European countries except Albania, finally confirmed the post-war borders of Europe and the Soviet Union, which meant acknowledging that the Baltic states were not independent but instead under the Kremlin’s control. To legitimize its control over the Baltics in particular, a concession it had been trying to win for years, the Soviet Union was even willing to enter into an agreement mandating that it “respect human rights and fundamental freedoms, including the freedom of thought, conscience, religion or belief, for all without distinction as to race, sex, language or religion.”

    At the time, many human rights advocates were skeptical that the Soviet Union or its Eastern European satellites would do anything of the sort. After 1975, “Helsinki” groups popped up throughout the region — the Moscow Helsinki Group, Charter 77 in Czechoslovakia — and promptly discovered that the Communist governments had no intention of honoring their Helsinki commitments, at least as they pertained to human rights.

    Most analysts back then saw the recognition of borders as cold realpolitik and the human rights language as impossibly idealistic. History has proved otherwise. The borders of the Soviet Union had an expiration date of 15 years. And, ultimately, it would be human rights — rather than war or economic sanctions — that spelled the end of the Soviet Union and the Warsaw Pact. Change came in the late 1980s from ordinary people who exercised the freedom of thought enshrined in the Helsinki Accords to protest in the streets of Vilnius, Warsaw, Prague and Tirana. The decisions made in 1975 ensured that the transitions of 1989-91 would be largely peaceful.

    After the end of the Cold War, the Helsinki Accords became institutionalized in the OSCE, and briefly, that promised to be the future of European security. After all, the collapse of the Soviet Union meant that NATO no longer had a reason for existence.

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    But institutions do not die easily. NATO devised new missions for itself, becoming involved in out-of-area operations in the Middle East, intervening in the Yugoslav wars and beginning in 1999 expanding eastward. The first Eastern European countries to join were the Czech Republic, Hungary and Poland, which technically brought the alliance to Russia’s very doorstep (since Poland borders the Russian territory of Kaliningrad). NATO expansion was precisely the wrong answer to the question of European security — my first contribution to Foreign Policy in Focus back in 1996 was a critique of expansion — but logic took a backseat to appetite.

    The OSCE, meanwhile, labored in the shadows. With its emphasis on non-military conflict resolution, it was ideally suited to the necessities of post-Cold War Europe. But it was an unwieldy organization, and the United States preferred the hegemonic power it wielded through NATO.

    This brings us to the current impasse. The OSCE has been at the forefront of negotiating an end to the war in eastern Ukraine and maintains a special monitoring mission to assess the ceasefire there. But NATO is mobilizing for war with Russia over Ukraine, while Moscow and Washington remain as far apart today as they were during the Cold War.

    The Helsinki Accords were the way to bridge the unbridgeable in 1975. What would Helsinki 2.0 look like today?

    Toward Helsinki 2.0

    The Helsinki Accords were built around a difficult compromise involving a trade-off on borders and human rights. A new Helsinki agreement needs a similar compromise. That compromise must be around the most important existential security threat facing Europe and indeed the world: climate change.

    As I argue in a new article in Newsweek, “In exchange for the West acknowledging Russian security concerns around its borders, Moscow could agree to engage with its OSCE partners on a new program to reduce carbon emissions and transition from fossil fuels. Helsinki 2.0 must be about cooperation, not just managing disagreements.”

    The Russian position on climate change is “evolving,” as politicians like to say. After years of ignoring the climate crisis — or simply seeing it as a good opportunity to access resources in the melting Arctic — the Putin administration change its tune last year, pledging to achieve carbon neutrality by 2060.

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    There’s obviously room for improvement in Russia’s climate policy — as there is in the United States and Europe. But that’s where Helsinki 2.0 can make a major contribution. The members of a newly energized OSCE can engage in technical cooperation on decarbonization, monitor country commitments to cut emissions, and apply new and stringent targets on a sector that has largely gotten a pass: the military. It can even push for the most effective decarbonization strategy around: demilitarization.

    What does Russia get out of the bargain? A version of what it got in 1975: reassurances around borders.

    Right now, everyone is focused on the question of NATO expansion as either an unnecessary irritant or a necessary provocation in American-Russian relations. That puts too much emphasis on NATO’s importance. In the long term, it’s necessary to reduce the centrality of NATO in European security calculations and to do so without bulking up all the militaries of European states and the EU. By all means, NATO should be going slow on admitting new members. More important, however, are negotiations as part of Helsinki 2.0 that reduce military exercises on both sides of Russia’s border, address both nuclear and conventional buildups, and accelerate efforts to resolve the “frozen conflicts” in Ukraine, Georgia and Moldova. Neither NATO nor the CSTO is suited to these tasks.

    As in 1975, not everyone will be satisfied with Helsinki 2.0. But that’s what makes a good agreement: a balanced mix of mutual satisfaction and dissatisfaction. More importantly, like its predecessor, Helsinki 2.0 offers civil society an opportunity to engage — through human rights groups, arms control advocates, and scientific and educational organizations. This might be the hardest pill for the Kremlin to swallow, given its hostile attitude toward civil society. But the prospect of securing its borders and marginalizing NATO might prove simply too irresistible for Vladimir Putin.

    The current European security order is broken. It can be fixed by war. Or it can be fixed by a new institutional commitment by all sides to negotiations within an updated framework. That’s the stark choice when the status quo cannot hold.

    *[This article was originally published by FPIF.]

    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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    Trump risked disaster with Abbas praise in key Israel meeting, ambassador says

    Trump risked disaster with Abbas praise in key Israel meeting, ambassador saysIn new book, David Friedman recounts private meeting with Israeli president in which Trump also knocked Netanyahu – and how he says he turned his man around Meeting then-Israeli president Reuven Rivlin in Jerusalem in May 2017, Donald Trump stunned advisers by criticising the then-prime minister, Benjamin Netanyahu, for being unwilling to seek peace while Mahmoud Abbas, the Palestinian leader, was “desperate” for a deal.‘Apartheid state’: Israel’s fears over image in US are coming to passRead moreThe comment “knocked everyone off their chairs”, David Friedman, Trump’s ambassador to Israel, writes in a new book.“Although the meeting was private and off the record, we all envisioned a headline tomorrow that Trump had praised Abbas and criticised Netanyahu – the worst possible dynamic for the president’s popularity or for the prospects of the peace process.“Fortunately, and incredibly, the event wasn’t leaked.”Friedman now describes the incident, and how he says he changed Trump’s mind, in Sledgehammer: How Breaking with the Past Brought Peace to the Middle East, a memoir which will be published next week by Broadside Books, a conservative imprint of HarperCollins. The Guardian obtained a copy.Trump’s bankruptcy lawyer was a hugely controversial choice for ambassador. As well as being a hardline pro-settler rightwinger, during the 2016 campaign he called Barack Obama an antisemite and J Street, a liberal US Jewish group, “worse than kapos”, Jewish prisoners who worked as guards in Nazi concentration camps.He was confirmed as ambassador by a 52-46 Senate vote. US ambassadors to Israel are usually confirmed unanimously.In his book, he says the “worse than kapos” remark was not a political or policy mistake but a tactical one, as it gave ammunition to critics in the Senate.Describing four “murder boards”, sessions in which nominees are grilled over potential problems, he says he first said he used the controversial phrase “because I felt that J Street had betrayed the Jewish people”.That, he writes, caused a “firestorm of reaction” and he was told he could not speak that way. His settled-on answer was: “In the heat of a political campaign I allowed my rhetoric to get the best of me. I regret these comments and assure you that if confirmed, my remarks will be measured and diplomatic.”Describing his confirmation process, Friedman reproduces private conversations with Democratic senators including Kirsten Gillibrand of New York (a “bad joke”), Cory Booker of New Jersey (“delightful” in person, only, Friedman writes, to turn on him in hearings), and Chuck Schumer, the Democratic leader.Friedman says he had donated to Schumer and the two New Yorkers spoke amicably before Friedman made a pitch for his vote, which he said would send “a strong message of bipartisanship on Israel, which you have advocated on numerous occasions”.Schumer, he says, smiled and answered: “I’m not giving Trump the win. Sorry.”Friedman also recounts an angry meeting with Bernie Sanders, the independent from Vermont, who he accuses of “siding with terrorists over one of America’s strongest allies”.But his description of the meeting between Trump and Rivlin and how Friedman says he turned his president round makes for more surprising reading, not least in how it appears to show how eager Trump was for a deal.Friedman describes how during Trump’s next meeting, with Netanyahu, he manoeuvred all present into viewing a “two-minute collection of Abbas’s speeches that I thought was worth watching”.The tape contained “two minutes of Abbas honouring terrorists, extolling violence, and vowing never to accept anything less than Israel’s total defeat”.“After the tape ended,” Friedman writes, “the president said, ‘Wow, is that the same guy I met in Washington last month? He seemed like such a sweet, peaceful guy.’“The tape had clearly made an impact.”Friedman writes that he was rebuked by Rex Tillerson, Trump’s first secretary of state, and HR McMaster, Trump’s second national security adviser.“They thought it was a cheap propaganda trick,” he writes. He told them, he writes, “I work for the president, and nobody else … I am going to make sure that he is well informed so that he gets Israel policy right.”Trump tested positive for Covid few days before Biden debate, chief of staff says in new bookRead moreFriedman emphasises his role in such policy, prominently including closeness to Netanyahu; support for Israeli settlers on Palestinian land; cutting aid to Palestinians; recognising Jerusalem as the Israeli capital and moving the US embassy there; and diplomacy that led to the Abraham Accords, the normalisation of Israeli relations with four Arab countries.Aides to Trump, Steve Bannon famously among them, have often suffered from being seen to claim too much credit for his successes. Friedman is sure to repeatedly praise Trump, while bragging of how close to “the boss” he became.Nonetheless, his description of Trump’s private meeting with Rivlin – behaviour Friedman says would have been embarrassing had it been leaked – could prove embarrassing itself.Trump has been repeatedly burned by books on his time in power, even those written by loyalists like Friedman.In December, the Guardian was first to report that Mark Meadows, Trump’s last chief of staff, described how the president tested positive for Covid-19 before his first debate with Joe Biden – and how the result was covered up.TopicsBooksDonald TrumpBenjamin NetanyahuIsraelMahmoud AbbasTrump administrationUS politicsnewsReuse this content More

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    Trump charges $250,000 for midterms forum – to boost his own Super Pac

    Trump charges $250,000 for midterms forum – to boost his own Super PacFebruary event notionally focused on 2022 midterms Former president has amassed huge war chest of $122m Donald Trump will charge top-paying guests $250,000 to attend a “Take Back Congress Candidate Forum” at his Mar-a-Lago resort in Florida this month – with proceeds going to his own Super Pac, rather than Republicans who will actually try to take back Congress.Nor is the top price tag, which guarantees a private dinner and picture with Trump as well as VIP seating at the forum, necessarily the full cost for any couple who chooses to pay it. On Twitter on Wednesday, the New York Times reporter and Trump watcher Maggie Haberman said: “$250k lets you pay for a Mar-a-Lago guest room.”Trump and his enablers unwittingly offer Democrats the best hope in the midterms | Robert ReichRead moreFurther down the menu, a couple paying $100,000 will get a photo with Trump and seating at a private dinner with endorsed candidates, with comments from Trump. For $50,000, guests will get the dinner and the Trump comments, but a picture only with “endorsed candidates”.Price tags descend to $5,000 per couple, for attendance – but presumably less than primo seating – at the dinner with comments from Trump.Emphasising Trump’s grip on the Republican party, Haberman pointed out that the former president “is spending almost no money on other Republicans so far. But he’s trying to raise for his group using congressional Republicans.”The Mar-a-Lago event is notionally aimed at the midterm elections in November this year, when Republicans are favoured to take back the House and possibly the Senate.A House takeover would see Trump well positioned to dictate to loyalists in party leadership, under Kevin McCarthy, the current minority leader.They are expected to pursue aggressive investigations of the Biden administration including a revenge impeachment and even, should the former speaker and McCarthy adviser Newt Gingrich be believed, the attempted jailing of members of the committee currently investigating the January 6 insurrection.Trump has his eyes on the 2024 presidential election, when he has strongly hinted he will run for the White House again.At a rally in Texas last week, he promised to pardon January 6 rioters and urged supporters to stage huge protests against prosecutors in New York and Georgia investigating his business affairs and election subversion.Trump has amassed a huge campaign war chest, of $122m.In a statement this week, spokesman Taylor Budowuch said the former president had “built a political organisation that continues to capture and define the future of the Republican party.“There is no question that the Make America Great Again (Maga!) wave is set to crash across the midterms and carry forward all the way through 2024.”But Trump’s leadership committee, Save America, this week declared donations of just $205,000 to endorsed candidates in the second half of 2021 – $45,000 less than the tag for a top-priced ticket to the dinner and forum at Mar-a-Lago on 23 February (not including guest room).CNN also reported that Trump’s Make America Great Again, Again! committee has spent around $1.7m on legal expenses as Trump fights investigations and congressional oversight. It has been widely reported that the Republican National Committee has helped to pay Trump’s legal bills.Trump’s Super Pac includes among its officers Pam Bondi, a former attorney general of Florida to whom Trump once controversially donated; the former ambassador to Germany and controversial former acting director of national intelligence Ric Grenell; and Matt Whitaker, briefly and controversially acting attorney general in the Trump administration.Kimberley Guilfoyle, Donald Trump Jr’s fiancee, is national finance chair.TopicsDonald TrumpRepublicansUS politicsnewsReuse this content More

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    Boris Johnson’s Convenient Bravado

    In the prelude to World War I, Western nation-states, from North America to the Urals, found themselves involved in a strange game nobody really understood. It turned around their perception of each nation’s individual image on the world stage. Each nation imagined itself as wielding a form of geopolitical power whose hierarchy was impossible to define.

    Even the borders of nations, the ultimate criterion for defining a nation-state, had become hard to understand. The idea of each nation was built on a mix of geographical, cultural, linguistic, ethnic, religious and ideological considerations. These became infinitely complicated by shifting relationships of dependency spawned by the dominant colonial model they all accepted as normal. And not just normal. Colonialism appeared to both Europeans and Americans as an ideal to aspire to.

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    Two world wars in the first half of the 20th century had the effect of seriously calming the obsession of Western nations with their individual images. For most of the nation-states emerging from the Second World War, an air of humility became the dominant mood. Two hegemons emerged: the United States and the Soviet Union. But even those powerhouses accepted to work within the framework of an idealized system, the United Nations. That forced them to respect, at least superficially, a veneer of outward humility. The Cold War’s focus on ideologies — capitalism vs. communism — served to hide the fact that the new hegemons were the last two political entities authorized to assert the geopolitical power associated with the previous century’s colonial nation-states.

    The current showdown between the US and Russia over events at the Ukrainian border shows signs of a return to the ambience that preceded the First World War. The Soviet Union disappeared 30 years ago, leaving a weak Russian state in its stead. The US has been on a steep decline for two decades since the confusion created on 9/11.

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    That should signify the existence of an opportunity for non-hegemonic nation-states to reemerge and potentially vie for influence on the world stage, as they did before World War I. After a century of adaptation to the consumer society on a global scale, however, the similarities may only be an illusion. 

    Still, some people appear to believe in an idea definitively discarded by history. The New York Times’ take on the latest posturing of Great Britain proves that the illusion is still alive in some people’s heads. In recent days, Prime Minister Boris Johnson has been diligently seeking to drag his isolated, Brexited nation into the fray of Eastern European border disputes, conjuring up reminiscences of pre-1914 Europe.  

    Over the weekend, British intelligence spread the “intelligence” that President Vladimir Putin is seeking to install a pro-Russian leader in Kyiv. Times reporter Mark Lander cites unnamed “British officials” who “cast it as part of a concerted strategy to be a muscular player in Europe’s showdown with Russia — a role it has played since Winston Churchill warned of an ‘Iron Curtain’ after World War II.”

    Today’s Weekly Devil’s Dictionary definition:

    Muscular player:

    An actor or performer whose wardrobe and makeup teams have the ability to turn the player into an image of Atlas or Hercules during a performance on a stage

    Contextual Note

    In the games that precede a major military conflagration, nations feel compelled to adopt attitudes that go well beyond their ability to perform. Lander quotes Malcolm Chalmers, the deputy director-general of a think tank in London, who explains that Johnson’s Britain “is differentiating itself from Germany and France, and to some extent, even the U.S.” He adds this pertinent observation: “That comes out of Brexit, and the sense that we have to define ourselves as an independent middle power.”

    There’s much that is pathetic in this observation. In a totally globalized economy, it is reasonable to doubt the idea of a “middle power” has any meaning, at least not the meaning it once had. Outside of the US and China, Russia may be the only remaining middle power, because of two things. First, its geography, its sheer landmass and its future capacity to dominate the Arctic. Second, its military capacity carried over from the Soviet era. The rest of the world’s nations, whether middle or small, should not even be called powers, but “powerlessnesses,” nations with no hope of exercising power beyond their borders. Alongside the middle and small, there may also be two or three “major” powerless nations: India, Brazil and Australia.

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    But, of course, the most pathetic aspect of the description of Britain’s ambition is the fact that Johnson’s days as prime minister appear to be numbered. He is already being hauled over the coals by his own party for his impertinent habit of partying during a pandemic. 

    In a press conference in Kyiv on February 1, Johnson deployed his most muscular rhetoric. For once finding himself not just on the world stage but in the eye of the hurricane, he felt empowered to rise to the occasion. “This is a clear and present danger,” he solemnly affirmed. “We see large numbers of troops massing, we see preparations for all kinds of operations that are consistent with an imminent military campaign,”

    The hollowness of Johnson’s discourse becomes apparent with his use of the expression, “clear and present danger,” a locution that derives from a US Supreme Court case concerning the limits on free speech guaranteed by the First Amendment. Chief Justice Oliver Wendell Holmes used the phrase in his draft of the majority decision in 1919. It became a cliché in American culture, even reaching the distinction of providing the title of a Hollywood action movie based on a Tom Clancy novel.

    As for his analysis of the clear and present danger, Johnson, who studied the classics at Oxford but maybe missed Aristotle, seems to ignore the logical inconsistency of assuming that if A (military buildup) is consistent with B (a military campaign), it does not make B predictable and even less “imminent.” That, however, is the line the Biden administration has been pushing for weeks. Johnson’s abject adherence to it may be a sign of the fact that Johnson is incapable of doing what Chalmers claimed he was trying to do: differentiate Britain — even “to some extent” — from the US.

    Historical Note

    The Times’ Mark Lander is well aware of the hyperreal bravado that explains Johnson’s move. “The theatrical timing and cloak-and-dagger nature of the intelligence disclosure,” Lander writes, “which came in the midst of a roiling political scandal at home, raised a more cynical question: whether some in the British government were simply eager to deflect attention from the problems that threaten to topple Prime Minister Boris Johnson.”

    Lander goes on to cite Karen Pierce, the British ambassador to the United States, eager to remind people of the historical logic of Johnson’s move. She refers to a British tradition rife with cloaks and daggers. “Where the Russians are concerned, you’ll always find the U.K. at the forward end of the spectrum.” She wants us to think back to Britain’s active participation in the Cold War, punctuated by an occasionally embarrassing episode such as the 1961 Profumo affair, starring model and escort Christine Keeler. But she knows that what best illustrates that glorious period for Britain in its holy struggle against the Soviet Union is James Bond, who has long been “at the forward end” of the Hollywood spectrum. In our hyperreal world, Pierce knows that fiction will always dominate and replace our understanding of reality. 

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    We need to ask another question in a world conditioned by the image of Sylvester Stallone, Arnold Schwarzenegger and Dwayne “the Rock” Johnson. Does the world really need muscular players today? The ancient Greeks imagined Heracles as a naturally muscular hero, who built up his bulk through his deeds, not through his workouts in the gym or to prepare for body-building competitions. Heracles was about killing lions with his bare hands, slaying Hydras, capturing bulls, and even cleaning stables — that is, getting things done. For the Greeks, Heracles was a muscular being, not a muscular player. 

    When Greek playwrights actually put Heracles on the stage, he could be tragic (Euripides, “The Tragedy of Herakles”) or comic (Aristophanes, “The Frogs”). In that sense, Arnold Schwarzenegger, from “Conan the Barbarian” to “Twins,” fits the role. The difference is that Heracles was a deity (the son of Zeus with the mortal Alcmene) and, thanks to the completion of his seven labors, became a god on Mount Olympus. When Schwarzenegger completed his labors as a muscular player in more than seven films, he became a Republican politician in California.

    *[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.]

    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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    Britain’s Still Got It

    Since Brexit in 2016, the United Kingdom’s growth rate has been poor. Inflation is at its highest rate in 30 years. In December 2021, it had risen to 5.4%. Wages have failed to keep up and, when we factor in housing or childcare costs, the cost of living has been rising relentlessly.

    COVID-19 has not been kind to the economy. Rising energy prices are putting further pressure on stretched household budgets. To stave off inflation, the Bank of England is finally raising interest rates, bringing an end to the era of cheap money. Payroll taxes are supposed to go up in April to repair public finances.

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    The Resolution Foundation is predicting that “spiralling energy prices will turn the UK’s cost-of-living crisis into a catastrophe” by spring. The UK’s 2022 budget deficit will be larger than all its G-7 peers except the US. The beleaguered Boris Johnson government finds itself in a bind. At a time of global inflation, it has to limit both public borrowing and taxes. Unsurprisingly, there is much doom and gloom in the air.

    We Have Seen This Movie Before

    Since the end of World War II, the UK has experienced many crises of confidence. One of the authors move to the country in 1977. Back then, the Labour Party was in power. James Callaghan was prime minister, having succeeded Harold Wilson a year earlier. The British economy was the fifth-largest in the world but was buffeted by crises. In 1976, the government had approached the International Monetary Fund (IMF) when, in the words of Richard Roberts, “Britain went bust.”

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    From 1964 to 1967, the United Kingdom experienced “a continuous sterling crisis.” In fact, the UK was “the heaviest user of IMF resources” from the mid-1940s to the mid-1970s. The 1973 oil crisis spiked energy costs worldwide and pushed the UK into a balance of payments crisis. Ironically, it was not the Conservatives led by Margaret Thatcher but Labour led by Callaghan that declared an end to the postwar interpretation of Keynesian economics.

    In his first speech as prime minister and party leader at the Labour Party conference at Blackpool, Callaghan declared: “We used to think you could spend your way out of a recession and increase employment by cutting taxes and boosting government spending. I tell you in all candour, that option no longer exists.” After this speech, the Callaghan government started imposing austerity measures.

    Workers and unions protested, demanding pay rises. From November 1978 to February 1979, strikes broke out across the UK even as the country experienced its coldest winter in 16 years. This period has come to be known as the Winter of Discontent, a time “when the dead lay unburied” as per popular myth because even gravediggers went on strike.

    In 1979, Thatcher won a historic election and soon instituted economic policies inspired by Friedrich von Hayek, the Austrian rival of the legendary John Maynard Keynes. Thatcher’s victory did not immediately bring a dramatic economic turnaround. One major industry after another continued to collapse. Coal mines closed despite a historic strike in 1984-85. Coal, which gave work to nearly 1.2 million miners in 1920 employed just 1,000 a century later.

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    Throughout the 1970s, the UK was dubbed “the sick man of Europe.” People forget now that a key reason the UK joined the European Economic Community (EEC) in 1973 was to make the economy more competitive. Between 1939 and the early 1990s, London lost a quarter of its population. Yet London and indeed the UK recovered from a period of crisis to emerge as a dynamic economy. Some credit Thatcher but there were larger forces at play.

    There Is Life in the Old Dog Yet

    Last week, one of the authors met an upcoming politician of India’s ruling Bharatiya Janata Party (BJP). A strong nationalist, he spoke about the importance of Hindi, improving India’s defense and boosting industrial production. When the conversation turned to his daughter, he said that he was sending her to London to do her A-levels at a top British school.

    This BJP leader is not atypical. Thousands of students from around the world flock to the UK’s schools and universities. British universities are world-class and train their students for a wide variety of roles. Note that the University of Oxford and AstraZeneca were able to develop a COVID-19 vaccine with impressive speed. This vaccine has since been released to more than 170 countries. This is hardly surprising: Britain has four of the top 20 universities in the world — only the US has a better record.

    Not only students but also capital flocks to the UK. As a stable democracy with strong rule of law, the United Kingdom is a safe haven for those seeking stability. It is not just the likes of Indian billionaires, Middle Eastern sheikhs and Russian oligarchs who put their wealth into the country. Numerous middle-class professionals choose the UK as a place to live, work and do business in. Entrepreneurs with a good idea don’t have to look far to get funding. Despite residual racism and discrimination, Britain’s cities have become accustomed to and comfortable with their ethnic minorities.

    Alumni from top universities and skilled immigrants have skills that allow the UK to lead in many sectors. Despite Brexit, the City of London still rivals Wall Street as a financial center. Companies in aerospace, chemical and high-end cars still make the UK their home. British theater, comedy, television, news media and, above all, football continue to attract global attention.

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    Napoleon Bonaparte once purportedly called the UK “a nation of shopkeepers.” There is an element of truth to this stereotype. The British are a commercially savvy, entrepreneurial and business-friendly bunch. One author knows a dealer who trades exclusively in antique fans and a friend who specializes in drinks that you can have after a heavy night. The other has a friend who sells rare Scotch whiskey around the world and an acquaintance who is running a multibillion insurance company in India. Many such businesses in numerous niches give the British economy a dynamism and resilience that is often underrated. Everything from video gaming (a £7-billion-a-year industry) to something as esoteric as antique fan dealing continues to thrive.

    The UK also has the lingering advantage of both the Industrial Revolution and the British Empire. Infrastructure and assets from over 200 years ago limit the need for massive capital investment that countries like Vietnam or Poland need. Furthermore, the UK has built up managerial experience over multiple generations. Thanks to the empire, English is the global lingua franca and enables the University of Cambridge to make money through its International English Language Testing System. Barristers and solicitors continue to do well thanks to the empire’s export of common law. Even more significantly, British judges have a reputation for impartiality and independence: they cannot be bribed or coerced. As a result, the UK is the premier location for settling international commercial disputes.

    In 1977, the UK was the world’s fifth-largest economy. In 2022, 45 years later, it is still fifth, although India is projected to overtake it soon. The doom and gloom of the 1970s proved premature. The same may prove true in the 2020s. The economy faces a crisis, but it has the strength and track record to bounce back. The UK still remains a jolly good place to study, work, invest and live in.

    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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    Modi’s India Is Becoming a Farce

    They say history repeats itself, first as a tragedy and then as a farce. At the dawn of India as a republic, several Western and Indian scholars, including Dr. Babasaheb Ambedkar, had reservations about its survival as a democracy. Widespread poverty, illiteracy and deep-rooted social divisions based on caste and religion were considered as serious threats to meaningful implementation of universal enfranchisement.

    For all his follies, Jawaharlal Nehru, India’s first prime minister, understood the importance of building democratic institutions and, with a few exceptions, worked tirelessly to nurture them. The 1975-1977 emergency under Indira Gandhi was the first open assault on the system. It was a tragedy. Now, under the leadership of Prime Minister Narendra Modi, Indian democracy is in danger of devolving into a farce.

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    By suspending the constitution, along with fundamental rights, incarcerating political opponents and censoring the media, Mrs. Gandhi canceled all local elections and ruled by decree. While Indira Gandhi’s authoritarianism was largely secular, her son Sanjay Gandhi’s forced sterilization drive of Muslims in the name of population control shocked the national conscience. In less than two years, a strong opposition coalesced around an agenda to save the constitution and regain fundamental rights.

    The Judiciary

    What prompted Indira Gandhi to call for fresh elections in 1977 remains a mystery. However, she paid the political price through her drubbing at the hands of a united opposition. In due time, the judiciary took corrective measures by apologizing for its failures during the dark era. In contrast, recent utterances and actions by India’s judiciary, the opposition and the ruling party are truly baffling.

    Consider a recent speech by N.V. Ramana, the chief justice of India, lamenting the demise of investigative journalism in the country. The judiciary is expected to be above the political fray, but it is hard to believe that it is oblivious to ground realities. It strains credulity that the chief justice is not aware of the prevailing toxic media environment aided by anonymous fundraising, questionable changes in the Right to Information (RTI) Act and the indiscriminate use of legislation like the sedition law and the Unlawful Activities (Prevention) Act (UAPA) against journalists. Barring exceptional circumstances where suo moto action is warranted, the judiciary can act only through cases presented to it.

    However, several cases related to anonymous electoral bonds, RTI changes and sedition/UAPA claims are pending in the Supreme Court. Given the track record of the past three chief justices, such a statement would have been a case of chutzpah. Since Chief Justice Ramana’s heart seems to be in the right place and he has been more active than his predecessors in some cases related to fundamental rights, perhaps we can call it ironic.

    The Opposition

    Then there is the specter of a rudderless opposition. We can discuss the Indian National Congress when it finds a full-time president. Out of the other two parties vying for national attention, Mamata Banerjee of the Trinamool Congress brings back memories of Congress-era socialism that Modi had promised to move India away from. Assorted schemes for social justice and women’s empowerment have helped her guard her home turf against Modi’s juggernaut, but West Bengal is not exactly a shining example of industrial dynamism.

    Banerjee could be a socially liberal counterweight to Modi’s rabid Hindutva-laced pseudo-nationalism, but her instincts are every bit as authoritarian. Rather than offering a new kind of politics, her currency is her willingness to go head-to-head with the ruling Bharatiya Janata Party’s (BJP) scorched earth tactics and street brawls. While some of this bare-knuckle politics can be a necessary evil, her track record in tolerating dissent, promoting freedom of expression and encouraging entrepreneurship does not inspire confidence.

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    The Aam Aadmi Party (AAP) is a strange creature. While it has built a decent track record of administering New Delhi for seven years, it does not have a guiding philosophy by design. In addition to focusing on education and healthcare in the capital, the AAP has also done reasonably well in managing its balance sheet with good trade and tax policies. However, its central plank of offering freebies, although popular among some sections, harken back to India’s Nehruvian past.

    Socially, by not taking a strong stand vis-à-vis the 2019-20 Shaheen Bagh protests against the Citizenship (Amendment) Act (CAA) and embarking on a temple run, the AAP seems to be gunning for a Hindutva-lite posture. An anti-corruption crusade and developing policies through consensus on the go might work in assorted state elections, but the lack of a socio-economic vision will hurt the AAP in general elections where voters are suckers for stories. Unless it comes up with its version of India’s legacy, national destiny and its place in the world that includes coherent defense and foreign policies, it will not be a serious competitor to the BJP nationally.

    The Central Government

    The lion’s share of the credit for turning India’s growth story into a farce goes to Modi, the Rashtriya Swayamsevak Sangh (RSS) and their obsession with Hindutva. Just like every previous administration, Modi has a few successful initiatives to boast of. His infrastructure building spree has forced erstwhile social justice politicians to focus on this long-neglected need. Government schemes for building toilets, offering cooking gas and safe drinking water have borne some fruits. The startup economy saw a record number of unicorns in 2021, although most of them are helping India formalize unorganized sectors and catch up with the developed world.

    In the process, Modi is learning what the erstwhile Nehruvian politicians realized a few decades ago, namely that it’s easy to distribute someone else’s money until it runs out. In spite of “Make in India” and the rebranded “Atmanirbhar Bharat” campaigns, the share of manufacturing in India’s GDP has gone down from 16% to 13% under Modi’s leadership and employment in the sector has halved. Exodus from manufacturing toward inefficient agriculture has increased poverty among Indians. The service sector might see an uptick after the COVID-19 pandemic subsides, but with the pace of automation and Modi’s hodgepodge of trade barriers, even an unlikely rebound in manufacturing will not lead to robust economic recovery.

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    The effects are visible in the government’s borrowings and the historic unemployment crisis. The once-in-a-century pandemic is not Modi’s fault and the debt-to-GDP ratio going from around 70% to 90% is understandable. The prime minister was dealt a bad pandemic hand and chose surgical fiscal interventions instead of putting cash in people’s hands, which would have further exacerbated inflation.

    However, had the pre-COVID Indian economy not been in the doldrums because of Modi’s bad stewardship, interest rates on the borrowing would not have shot up by 30-60 basis points before the 2022 budget, pushed up further by 20+ points as soon as another massive borrowing program was announced in the budget. With the US Federal Reserve staring at a series of interest rate hikes in 2022, borrowing might get even dearer for India.

    The resulting policy muddle and unemployment crisis are so stark, that even Arvind Subramanian, Modi’s former chief economic adviser, and Varun Gandhi, a parliamentarian from his own party, are finally speaking up. They are openly discussing India missing the boat of attracting manufacturers fleeing authoritarian China and seeing the demographic dividend — one of the few advantages India has over China that it cannot quickly fix — turn into a demographic disaster. While the rich will find ways to evade taxes and the poor don’t pay any, it is the middle class — enamored by the Hindutva ideology — that will shoulder the soaring debt.

    BJP-Ruled State Governments

    The story gets more farcical in BJP-ruled states. To placate unemployed youth, Haryana has passed a draconian job reservation law that reinstitutes Congress-era license raj and bureaucracy. In Uttar Pradesh, the BJP’s infrastructure poster-boy Yogi Adityanath has his own brand of lawlessness, exhibit A being the unconstitutionality in dealing with anti-CAA protestors.

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    Allahabad’s high court has already struck down critical provisions of Uttar Pradesh’s new “love jihad” law. That has not stopped Karnataka from wasting the state legislature’s time in debating an even more draconian and unconstitutional anti-religious conversion bill. Industry honchos drawing up plans to attract global talent to Bangalore seem unaware that in a worldwide competition for the best brains and entrepreneurs, few are interested in living in a country that cannot guarantee the rule of law, an efficient judiciary and personal freedoms.

    India might have edged out China in venture investments in 2021 due to Beijing’s crackdown on startups and Delhi still lagging behind in formalizing its economy. However, the celebration will be short-lived if India keeps marching in China’s direction in terms of the state’s heavy-handedness and assault on personal liberties. It is becoming increasingly clear that Modi, the so-called nationalist, purchased a cyber weapon — the Pegasus spyware — from a foreign country and used it against his innocent fellow citizens without any warrant or probable cause. Meanwhile, BJP-ruled states are busy competing amongst themselves in further undermining rule of law and due process.

    Looking Ahead or Back?

    As India kicks off the celebrations for the 75th anniversary of independence, Modi is lucky that his predecessors built robust space, missile and nuclear programs, respectable academic institutions that are churning out professionals leading the budding startup scene, a generic medicine and vaccine sector that saved India money in the pandemic, a professional military not infested by religious fundamentalism as well as defense production companies ripe for public-private partnerships. In a hostile neighborhood made even more so by Modi’s hubris, one shudders to think what he would have done without all these national assets.

    And yet, with no money left to redistribute and no quick fixes to the unemployment crisis, Modi has now embarked on mixing Hindutva with education. As if the Covaxin approval without phase 3 clinical trial data and Ramdev Baba’s Coronil controversy were not enough, a parliamentary panel has proposed teaching the Vedas in public schools. IIM Ahmedabad has started offering a Bhagavad Gita-based management course. IIT Kharagpur has courses in Vaastu and ancient Indian knowledge systems in the pipeline.

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    While the American private sector looks for ways to augment the government’s R&D funding juggernaut for secular scientific discoveries and knowledge creation, Modi is busy looking backward and further decimating India’s social capital. Despite the fanfare surrounding the new National Education Policy, funding for education has gone down from 4.4% to 3.4% of GDP and R&D funding is stagnant at 0.6%-0.7% of GDP.

    Fifty years after the emergency, India is still paying the economic price for Indira Gandhi’s misplaced jingoism and disastrous nationalization of huge swaths of industry. Narendra Modi’s authoritarian rule has India already staring at a demographic disaster for another generation, with potentially longer-lasting consequences. Gods and goddesses have mercy on India.

    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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    Why are rightwingers so opposed to a Black woman supreme court nominee? | Thomas Zimmer

    Why are US rightwingers so opposed to a Black woman supreme court nominee?Thomas ZimmerThe right’s alarmed reaction to Biden’s pledge to nominate a Black woman to the supreme court reveals the conservative siege mentality When Joe Biden publicly pledged to nominate a Black woman to the US supreme court, conservative politicians, activists, and intellectuals certainly didn’t try to hide their disdain. The announcement was “offensive,” Texas Senator Ted Cruz argued, proof that the President didn’t care about 94% of Americans (everyone who is not a Black woman); and even though it’s unclear who the candidate will be, Mississippi Senator Roger Wicker already knows he won’t support this affirmative action “beneficiary.” Tucker Carlson railed against Biden’s “casual racism,” and the conservative legal establishment also vowed to fight against this “lesser Black woman,” as Ilya Shapiro, the vice president of the Cato Institute, put it. Legal scholar Jonathan Turley, finally, bemoaned “exclusionary criteria of race and sex” – which apparently is a problem only if and when they result in the selection of someone who is *not* a white man. Let’s remember: 115 people have been appointed to the court in its 232-year existence – seven have not been white men. Seven.Biden to nominate first Black woman to sit on supreme court by end of FebruaryRead moreThis rather alarmed response tells us a lot about how the right views the political conflict, precisely because it is seemingly at odds with the fact that the conservative majority on the court is not in jeopardy. Any assessment of these reactions must start by recognizing their racist and sexist nature. They are revealing precisely because they were so reflexive, so visceral. Misogynoir – anti-Black misogyny – forms the basis of this conservative scorn.But there is something else on display here too. A Black woman replacing Justice Breyer won’t change the court’s arithmetic. And yet, conservatives still feel threatened by Biden’s announcement because they understand it symbolizes the recognition that having white men dominate the powerful institutions of American life is a problem – and that rectifying this imbalance is an urgent task. They reject the notion that the country’s institutions should reflect the composition of the people; they know representation matters, and that a Black woman ascending to a position like this is also an acknowledgment of past injustice.Conservatives see Biden’s announcement as an indication of how powerful the forces of liberalism, “wokeism,” and multiculturalism – those radically “Un-American” ideas that are threatening “real” (read: white Christian patriarchal) America – have already become. In this way, Biden’s pledge is perceived as yet more evidence that the Right is on the retreat. It is impossible to understand conservative politics in general without grappling with this pervasive siege mentality.The fact that a reactionary majority will dominate the supreme court for a generation doesn’t do much to alleviate these fears. The Right doesn’t look at the Court in isolation, but considers the judiciary as part of an all-encompassing conflict over the fate of America. And conservatives understand clearly that this conflict isn’t confined to the political realm, but plays out in all areas of American life: it defines politics, society, culture – and in some of these spheres, conservatives are indeed losing.The Right is reacting to something real: due to political, cultural, and demographic changes, the country has indeed become less white, less conservative, less Christian. The balance of political power doesn’t (yet) reflect that, as the US system has many undemocratic distortions and is deliberately set up in a way that disconnects these changing demographic and cultural realities from political power. But conservatives realize that their vision for American society has come under pressure.Nothing symbolized this threat to white dominance like Barack Obama’s presidency – an outrageous subversion of what reactionaries understand as America’s natural order, made worse by the fact that the first Black president managed to get re-elected with less than 40% of the white vote. Republicans are attempting to undermine democracy because they are under no illusion about the lack of majority support for their preferred version of “real” America.The fact remains that conservatives have secured a stable majority on the supreme court, thereby guaranteeing that the court will support the reactionary political project. But it is not just political power they seek, but cultural domination and affirmation. In the cultural sphere, the shift in power away from white conservatives has been more pronounced, leading to the recurring rightwing moral panics of recent years.The freak-outs over #MeToo, “cancel culture” and “wokeism” are reactions to the fact that traditionally marginalized groups have indeed gained enough political and cultural influence to make their claims heard and demand a modicum of respect. It has traditionally been the prerogative of a white male elite to determine what is and what is not acceptable in US society. That prerogative has come under fire, and it’s not something the judiciary can fully restore.It’s important to note that it’s really more the potential of losing privilege that is animating these reactionary panics. In practice, the traditional power structures have held up mostly fine. But still, the privileged status of white men has never been under more scrutiny. Put simply, being a member of the white male elite is slightly less comfortable today than it used to be.Against this broader background, conservatives understand Biden’s announcement as evidence that the dreaded forces responsible for the general assault on white male rule keep ascending within America’s institutions. Whether or not it has any immediate effect on the supreme court’s decisions, for a movement centered around the idea that America is a white Christian patriarchal nation, a place where white Christian men have a Right to dominate, a Black woman rising remains a threat.President Biden’s public pledge to nominate a Black woman to the supreme court represents an affirmation of multiracial pluralism. That’s why it matters. It’s an acknowledgment that the traditional dominance of white men was never the result of meritocratic structures, but of a discriminatory system, and that it’s time to dismantle that system. It will help redefine what the American political, social, and cultural elite looks like – reshaping ideas in the collective imaginary of the nation of who gets to be at the top. As multiracial, pluralistic democracy is under assault, that matters a lot.
    Thomas Zimmer is a visiting professor at Georgetown University, focused on the history of democracy and its discontents in the United States, and a Guardian US contributing opinion writer
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