Archives: 12/2015

America Is Winning Burma’s “Great Game” between the U.S. and China

Relations between the U.S. and China have grown tenser as the latter has developed economically and advanced internationally. Few Americans want to cede their dominant position while most Chinese are determined to regain what they believe to be Beijing’s rightful influence.

The two nations are waging a bitter but so far nonviolent struggle in Burma, or Myanmar. And the U.S. appears to be winning.

For decades Burma’s military ruled ruthlessly. The West responded by isolating and sanctioning the generals, who renamed their nation Myanmar over popular opposition.

The junta turned to China for military cooperation and economic support. Beijing, which desired Burma’s natural resources, including minerals, timber, and water, was happy to oblige. The embrace from Burma’s northern neighbor grew ever tighter—too tight, in the view of many Burmese.

In 2008 the military began a gradual process of carefully limited political reform, which culminated in legislative elections in November. The junta’s members had not undergone a miraculous conversion to liberalism. Rather, an important, though largely unarticulated, objective was to reduce reliance on the People’s Republic of China.

For years Burma was a pariah state almost akin to North Korea. There was only limited interaction with both the U.S. and Europe, the most obvious sources of aid, investment, and trade. While Asian tigers roared, Burma slumbered.

Free Speech Dominates Censorious Sheriff

In late October, I blogged about a weird case out of Chicago where the sheriff decided to crusade against online-commerce site Backpage.com (similar to Craigslist). The law wouldn’t allow Cook County Sheriff Thomas Dart to go after Backpage directly, so he sent strongly worded letters to financial institutions in hopes that they would stop processing Backpage’s payments. The tactic worked, so Backpage went to court to save its business.

Well, on Monday, as free-speech advocates returned from their Thanksgiving breaks, the U.S. Court of Appeals for the Seventh Circuit overturned a district court decision to deny Backpage’s request for a preliminary injunction against Sheriff Dart. The opinion, authored by Judge Richard Posner, denounces Dart’s attempts in his official capacity to “starv[e Backpage] by pressuring credit card companies to cut ties with its website.” (The opinion was joined by Judge Diane Sykes, who was Cato’s 2014 B. Kenneth Simon Lecturer, which lecture you can read in the most recent edition of the Cato Supreme Court Review.)

Backpage offers 11 categories of ads, primarily facilitating mundane transactions like used-lawnmower sales and vacation rentals but also with an “adult” section broken down into titillating subcategories such as “dom[ination] & fetish” and “body rubs.” Sheriff Dart had unsuccessfully sued Craigslist over the content of its adult section in 2009 (though Craiglist removed its adult section a year later). Having previously failed with that approach, Dart employed a different technique in his persecution of Backpage, sending a letter on his official stationary to Visa and Mastercard, among others, that suggested that he could use his authority to initiate investigations into “institutions” that “willfully play a central role in an industry that reaps its cash from the victimization of girls and women across the world” unless they ceased to allow their credit cards to be used to purchase ads on Backpage.

Will Nevada’s Education Savings Account Benefit the Poor?

Perhaps the most interesting development in education policy this year has been Nevada’s adoption of the first education savings account program to offer nearly universal eligibility. Students who attended a charter or district school in the previous year are eligible to have a portion of the state funds that would have been spent on them instead deposited into an account that they can use to purchase a wide variety of educational goods and services. By empowering families with more alternatives to the generally low-performing district schools, the ESA program is also a pressure relief valve for Nevada’s severely overcrowded schools.

However, although low-income families have the most to gain from the ESAs, it appears that higher-income families have been the first to apply for the accounts. The Las Vegas Review-Journal reports:

Overall, half of the nearly 3,100 applications submitted as of Oct. 28 list an address in a ZIP Code among the top 40 percent of median households in Nevada. That’s in contrast to just 10.7 percent of applications from households with median incomes in the bottom 40 percent.

It’s important to note that these are not the final ESA enrollment figures. As Matthew Ladner of the Foundation for Excellence in Education pointed out, these are merely the “earliest of the early adopters.” At the time of the Review-Journal report, Nevada families still had more than two months to apply for an ESA before the program commenced. Nevertheless, opponents of parental choice have seized on the development:

“It’s what we expected,” said Sylvia Lazos, policy director for the education reform group Educate Nevada Now [which is suing to end the ESA program].

The ESA program “was not tailored to low-income parents. It was not tailored to parents with children in (low-performing) schools,” she said. “With every program of this nature, it’s just the reality that affluent and high middle-income families are always in the best position to take advantage of government programs.”

Yet nowhere is this more true than in the government schools. Because the government assigns students to district schools based on the location of the home their parents can afford, wealthier families have access to district schools that are safer and higher quality than those to which low-income students are assigned. It’s not resources that account for the difference in performance – Washington, D.C. spends nearly $30,000 per pupil for one of the worst school districts in the nation. Culture certainly plays an important role, but so does the ability to exit.