Topic: Foreign Policy and National Security

A Libertarian Moment in Turkey?

What are the protesters in Istanbul upset about? Well, I noted last week that a survey by a Turkish newspaper gave us a partial picture. A headline from the Hurriyet Daily News in Istanbul reported: 

Protesters are young, libertarian and furious at Turkish PM, says survey

An online survey of 3000 protesters conducted by two academics found, among other things:

A majority of the protesters who completed the survey, 81.2 percent, defined themselves as “libertarian.” A total of 64.5 percent of the respondents defined themselves as “secular.”

And now the Washington Post tells us that one young protester, Aysun Yerlikaya, objects to Prime Minister Recep Tayyip Erdogan because he’s, well, too much like Michelle Obama and Michael Bloomberg:

Erdogan “pokes into everything — what you drink, what you eat,” she said, referring to advice he gave earlier this year to eat “genuine wheat bread” with a lot of bran in it.

Washington Foolishly Tilts Towards War in Syria

The bitterest fights tend to be civil wars. Today, Syria is going through such a brutal bloodletting. 

The administration reportedly has decided to provide arms to Syria’s insurgents. It’s a mistake.

This kind of messy conflict is precisely the sort in which Washington should avoid. Despite the end of the Cold War, the U.S. armed services have spent much of the last quarter century engaged in combat. At the very moment Washington should be pursuing a policy of peace, policymakers are preparing to join a civil war in which America’s security is not involved, other nations have much more at stake, many of the “good” guys in fact are bad, and there would be no easy exit.

Military action should not be a matter of choice, just another policy option. Americans should have something fundamental at stake before their government calls them to arms.

No such interest exists in Syria.

Intervention against Damascus means war. Some activists imagine that Washington need only wave its hand and President Bashar Assad would depart. However, weapons shipments are not going to oust a regime which has survived two years of combat. Intervening ineffectively could cost lives and credibility while ensuring heavier future involvement.

There is no serious security rationale for war. Damascus has not attacked or threatened to attack America or an American ally. America’s nearby friends, Israel and Turkey, are capable of defending themselves.

Another concern is the conflict spilling over Syria’s borders. But this does not warrant U.S. intervention. Maintaining geopolitical stability rarely approaches a vital interest justifying war.

Moreover, intervening would not yield stability. Washington foolishly attempted to sort out Lebanon’s civil war three decades ago and was forced into an embarrassing retreat. There’s no reason to believe joining the Syrian killfest today would yield a better result.

Another claim is that ousting the Assad dictatorship, allied with Tehran, would weaken Iran. Likely so, but then Iran would have a greater incentive to emphasize ties with Shia-dominated Iraq, which also has been aiding Assad.

Moreover, a chaotic, fragmented, sectarian Syria likely would do more to unsettle Iraq, Israel, and Lebanon, allied or friendly to America, than Iran. Tehran’s divided elite also might close ranks in response to an increased feeling of encirclement.

Advocates of U.S. action point an accusing finger at Iran, Lebanon’s Hezbollah, and Russia for helping Damascus. However, Qatar and Saudi Arabia are providing money and weapons to the rebels. Turkey is offering sanctuary for insurgents. The international nature of the struggle is a good reason for Washington to stay out.

Syria’s chemical weapons stockpiles also argue against intervention. Chemical agents are the least effective and most geographically constrained of so-called weapons of mass destruction. Thus, “leakage” is more likely to threaten Syria’s neighbors than America.

Weakening or overthrowing the Assad regime is more likely to release chemical agents to potentially hostile governments or groups. Air strikes would loose chemicals against surrounding civilians. Boots on the ground would mean regime change, leaving Damascus no reason not to use chemical weapons as a last resort defense.

The most pressing concern is humanitarian. But Syria is not a case of genocide committed by an armed government against an unarmed people. There are two forces ready to kill. Defeating one does not mean peace. Rather, it means the other gets to rule, perhaps ruinously.

In both Kosovo and Rwanda the U.S.-backed victors committed atrocities. In Syria reprisals are certain whoever wins. Neither Afghanistan nor Iraq offer reasons for optimism—extended blood-letting, interminable involvement, disappointing outcome.

The result in Syria actually could be far worse, because of the rise of Islamic radicalism among insurgents. These fine folks recently executed a 15-year-old boy for blasphemy in front of his parents.

The final pitch for war is camouflaged as a call for American leadership. However, whether leader or follower, the U.S. would lose by attacking Assad.

Although diplomacy looks forlorn after two years of combat, it remains the best hope. Despite recent gains, Assad’s forces remain unlikely to reassert control over the northern half of the country. The opposition’s divisions and Assad’s outside assistance make a complete rebel victory unlikely. All of the surrounding states have much to lose from continuing war. A second best modus Vivendi might be possible.

Even if diplomacy fails, however, Washington should stay out of the war.

Syria is a tragedy. There is no reason to make it America’s tragedy. President Barack Obama should ask: does he want his administration to be defined by involvement in an unnecessary and unpopular no win war, as was that of his predecessor?

No Need to Fear China’s Military Build-Up

America’s and China’s presidents are meeting amid popular fears that Beijing is set to surpass Washington as the globe’s premier power.  However, America’s advantages remain overwhelming, including in military strength. 

The U.S. Department of Defense recently published its latest report on the Chinese military, warning that the People’s Republic of China “continues to pursue a long-term, comprehensive military modernization program designed to improve the capacity of its armed forces to fight and win short-duration, high-intensity regional military conflict.” 

Beijing’s advances are real.  However, as I point out in my latest article on the China-US Focus website, the Chinese military poses little threat to America.

As I explain, the PRC is focusing on Taiwan, a mission which

conflicts with Washington’s objectives but does not threaten U.S. security.  The PRC has no interest in war with America or any design to threaten U.S. territory, population, or prosperity.  Rather, China envisions a world in which it has greater influence and America has less. 

While this world may not be a better place—certainly from Washington’s viewpoint—it will inevitably arrive.  The U.S. should not view Beijing’s challenge as primarily military, which must be resisted with force.

Equally important is the question of capabilities.  China is the world’s number two in military spending—DOD estimates the equivalent of between $135 billion and $215 billion.  But America’s advantage remains huge.  Washington possesses the world’s biggest and most powerful military and continues to spend far more than the PRC, three or more times on the U.S. “core,” non-war budget.

China’s real “threat” is the potential of creating a force capable of preventing the U.S. from intervening throughout East Asia along the PRC’s border.  This would be inconvenient for Washington policymakers, but they would react the same way if Beijing was attempting to preserve Chinese military domination along U.S. borders.  Although some Americans have come to view global hegemony as their birthright, Washington’s dominance is artificial and temporary. 

The U.S. has to prepare for a new world.  That means expecting allies, such as Japan and South Korea, to defend themselves and their regions rather than America doing everything for them.  That means encouraging new powers, such as India, to play a larger security role, even though their objectives will not always match those of America.  And that means finding a peaceful accommodation with China, a rising Asian power determined to play a much larger role in regional and ultimately global affairs. 

On Iran’s Inflation Bogey

With Friday’s Iranian Presidential election fast approaching, there has been a cascade of reportage in the popular press about that opaque country. When it comes to economic data, Iran has resorted to lying, spinning and concealment – in part, because of its mores and history, and more recently, the ever-tightening international sanctions regime. In short, deception has been the order of the day.

The most egregious example of this deception concerns one of Iran’s most pressing economic problems – rampant inflation. Indeed, while the rest of the world watched Iran’s economy briefly slip into hyperinflation in October of 2012, the Statistical Centre of Iran and Iran’s central bank both defiantly reported only mild upticks in inflation.  

It is, therefore, rather surprising that the major international news outlets have continued to report the official inflation data without so much as questioning their accuracy. Even today, with official data putting Iran’s annual inflation rate at a mere 31 percent, respectable news sources faithfully report these bogus data as fact.

As I have documented, regimes in countries undergoing severe inflation have a long history of hiding the true extent of their inflationary woes. In many cases, such as the recent hyperinflation episodes in Zimbabwe and North Korea, the regimes resort to underreporting or simply fabricating statistics to hide their economic problems. Often, they stop reporting economic data all together; or, when they do report economic statistics, they do so with such a lag that the reported data are of limited use by the time they see the light of day.

Iran has followed this course – failing to report important economic data in a timely and replicable manner. Those data that are reported by tend to possess what I’ve described as an “Alice in Wonderland” quality. In light of this, it is fair to suggest that any official data on Iran’s inflation be taken with a grain of salt.

So, how can this problem be overcome? At the heart of the solution is the exchange rate. If free-market data (usually black-market data) are available, the inflation rate can be estimated. The principle of purchasing power parity (PPP), which links changes in exchange rates and changes in prices, allows for a reliable estimate. Indeed, PPP simply states that the exchange rate between two countries is equal to the rates of their relative price levels. Accordingly, if we can obtain data on free-market exchange rates, we can make a reliable estimate of the inflation rate.

In short, changes in the exchange rate will yield a reliable implied inflation rate, particularly in cases of extreme inflation. So, to calculate the inflation rate in Iran, a rather straightforward application of standard, time-tested economic theory is all that is required.

Using this methodology, it is possible to estimate a reliable figure for Iran’s annual inflation rate. At present the black-market IRR/USD exchange rate sits at 36,450. Using this figure, and a time series of black-market exchange rate data that I have collected over the past year from currency traders in the bazaars of Tehran, I estimate that Iran’s current annual inflation rate is 105.8 percent – a rate almost three and a half times the official annual inflation figure (see the accompanying chart). 

Turkey’s Uncertain Journey into the Future: It Ain’t the Arab Spring

Protests continue across Turkey.  There’s a lot of loose talk about the “Arab Spring” coming to Turkey, but Prime Minister Recep Tayyip Erdogan’s Justice and Development Party (AKP) was democratically elected.  One of his great accomplishments was dismantling the military-dominated “Deep State” system which effectively controlled the Republic of Turkey since its founding in 1923. 

Modern Turkey evolved out the ruin of the Ottoman Empire and was ruled by Mustafa Kemal Pasha, who took on the name Ataturk (“Father of the Turks”).  His image still dominates the modern nation.  He was a modernizer, not a democrat.  Those who followed him enforced a ruthless nationalism and secularism; the military routinely interfered in politics, effectively destroying the predecessor party to the AKP in 1997. 

These were not the “good old days.”  The military jailed, tortured, and murdered opponents.  The Kurds were brutally repressed.  Liberals of all sorts were prosecuted, fired, and threatened for their views.  Prime Minister Erdogan ended most of these abuses. 

Unfortunately, however, power seems to have corrupted the prime minister.  As I explain in my new article:

tragically, however, Prime Minister Erdogan has stopped acting as a liberator, and increasingly begun acting as oppressor at home.  His government has used preexisting security laws to prosecute civilians, including many journalists, as well as military officers for alleged crimes, some going back many years.  While those who in their time persecuted others deserve little sympathy, misuse of the law puts the liberties of all into jeopardy.  Warned the U.S. State Department in its latest human rights report:  “Broad laws against terrorism and other threats to the state and a lack of transparency in the prosecution of such cases significantly restricted access to justice.”

Particularly threatening is the prosecution of journalists.  Last year the Journalists Union of Turkey counted 94 reporters in prison, while another group figured that number at 104. The New Yorker’s Dexter Filkins cited “an extraordinary climate of fear among journalists,” leading many editors to expressly discourage criticism of the prime minister.

The government could respond to the latest protests by returning to the reform track.  If not, the public needs to solve the problem of unaccountable political power through the ballot box.  Ironically, Prime Minister Erdogan has made further democratic transformation of Turkey possible by breaking the military’s hold over politics.  Now it is up to the Turkish people to act.

A Middle East Aflame Needs Economic Freedom

The small Persian Gulf kingdom of Dubai is an oasis in a region aflame. Even NATO member Turkey has been inundated with protests. 

The region’s best hope for the future is greater economic opportunity. It’s an issue that I recently discussed with businessman Waleed Moubarak of Alghanim Industries.

The Emirate of Dubai is one of seven kingdoms which make up the United Arab Emirates. The latter is a kingdom, not a democracy, which is reflected in its human rights record. However, the country is doing better on economics. Overall the UAE comes in at number 11 on the Economic Freedom of the World Index.

Dubai’s oil has run low, which may be the key to its recent success. Moubarak argued that Dubai was “forced to develop” because it “doesn’t have the oil resources that its neighbors do.” 

As I explain in my latest Forbes online column:

One of Dubai’s most important steps has been to set up more than a score of free zones, covering financial, auto, internet, media, gold, and other services.  Additional zones for auto parts, carpets, flowers, maritime, and textiles are planned.  The areas offer tax exemptions, full foreign ownership, and free capital repatriation. 

Among the most important innovations within the Dubai International Financial Center are independent commercial laws and common law courts.  The DIFC attracts judges from common law jurisdictions elsewhere, such as Great Britain, Hong Kong, and Singapore.  The system offers legal predictability and stability, essential to attract substantial foreign investment.  Two years ago Dubai allowed businessmen outside of the zone to rely on DIFC courts.  Apparently Abu Dhabi intends to create a competing financial free zone.

Moubarak and Alghanim also are involved in Injaz, an international charity which, Moubarak explained, seeks to train Arab youth to “give them a skill set to go out and succeed” so they don’t have to settle for “the traditional goal to get in government and get a sinecure.”   It is a wonderful objective.  He added:  “Injaz, in a small way, tries to change that mindset and to give the Arab youth a sense of the possibilities that the private sector has to offer.” 

The Middle East is filled with human potential that is being squandered.  The region needs democracy and human rights.  It also needs economic freedom and entrepreneurship.   We all have a stake in the Mideast finding the way to peace and prosperity.

Korean Déjà vu: North Koreans Back Begging for Money

The world has moved on to the latest crisis du jour, but it wasn’t that long ago when North Korea’s Kim Jong-un was dominating global headlines threatening to nuke places like Austin, Texas.  (Why Austin?  Maybe because Cato Senior Fellow Ted Galen Carpenter now resides there, but that’s only speculation on my part!)

Since then Pyongyang has gone largely silent.  But on Sunday representatives from the so-called Democratic People’s Republic of Korea met with South Korean officials and plotted expanded talks for later this week.  As Yogi Berra once observed, it’s déjà vu all over again.

The DPRK has been threatening the peace in Northeast Asia since its founding in 1948.  In the 1990s the Republic of Korea decided to try appeasement, providing roughly $10 billion in aid and investment to the North in ensuing years.  Alas, Pyongyang simply took the cash from the so-called Sunshine Policy and built more nuclear weapons.

Andrei Lankov, who as a Soviet student studied in Pyongyang and now teaches in the South, argues that the Kim family regime is unlikely to ever reform, since doing so would threaten its survival.  Any change is likely to lead to an eventual South Korean takeover.  So the DPRK regime tries to extort money out of other nations.

The ROK again is the chief target, since the upcoming talks were expected to focus on reopening the Kaesong Industrial Complex, closed by the North during its recent provocative cycle.  The KIC provides Pyongyang with $90 million annually in salary revenue alone.  Apparently the North also wants to restart tourist tours elsewhere, which would provide more hard currency.

Seoul would be foolish to agree.  As I argue on American Spectator online:

What possible argument is there for keeping the subsidies going after Kim Jong-un’s recent fire-and-brimstone tirade?  South Koreans are putting money into the hands of the North’s barbaric elite which is threatening to destroy the ROK.  Every won sent north can be used to add more nuclear weapons, miniaturize nuclear bombs, and extend the range of nuclear-capable missiles.

The argument that making North Korean officials feel warm and fuzzy will convince them to cast off their collective security coat has been disproved by experience.  Lankov still argues that in the long-term the subversive impact of KIC on the North Korean population makes it worth the cost.  That might be true if the money didn’t act as a direct subsidy for the regime.  Cutting the North’s financial windpipe would seem to be a better strategy.

Of course, the South Korean government can set its own policy.  But American taxpayers should not protect a country which is subsidizing its potential enemy.  In effect, Seoul is paying Kim & Co. to build weapons which would be used to kill the very Americans guarding the ROK.

At the last minute the Kim government pulled out of the planned talks.  The official reason was a tiff over relative rank of the negotiators.  More likely the DPRK is playing its usual game of raising positive expectations and then creating tension, with the plan to soon return to whisper sweet nothings in Seoul’s ear.

Whatever happens to the latest round of talks, as I’ve long argued it is time for Washington to disentangle itself from the Korean peninsula.  American troops should come home; America’s defense guarantee should end.  North Korea should become its neighbors’ problem.  Then maybe Seoul would spend millions more dollars directly on the South Korean military rather than indirectly on the North Korean military.