Tag: war

Week in Review: ‘Saving’ the World, Government Control and Drug Decriminalization

G-20 Summit Agrees to International Spending Plan

g-2The Washington Post reports, “Leaders from more than 20 major nations including the United States decided Thursday to make available an additional $1 trillion for the world economy through the International Monetary Fund and other institutions as part of a broad package of measures to overcome the global financial crisis.”

Cato scholars Richard W. Rahn, Daniel J. Ikenson and Ian Vásquez commented on the London-based meeting:

Rahn: “President Obama of the U.S. and Prime Minister Brown of the U.K. will be pressing for more so-called stimulus spending by other nations, despite the fact that the historical evidence shows that big increases in government spending are more likely to be damaging and slow down recovery than they are to promote vigorous economic expansion and job creation.”

Vásquez: “The push by some countries for massive increases in spending to address the global financial crisis smacks of political and bureaucratic opportunism. A prime example is Washington’s call to substantially increase the resources of the International Financial Institutions… There is no reason to think that massive increases of the IFIs’ funds will not worsen, rather than improve, their record or the accountability of the aid agencies and borrower governments.”

Ikenson: “Certainly it is crucial to avoid protectionist policies that clog the arteries of economic recovery and help nobody but politicians. But it is also important to keep things in perspective: the world is not on the brink of a global trade war, as some have suggested.”

Ikenson appeared on CNBC this week to push for a reduction of trade barriers in international markets.

With fears mounting over a global shift toward protectionism, Cato senior fellow Tom Palmer and the Atlas Economic Research Foundation are circulating a petition against restrictive trade measures.

Obama Administration Forces Out GM CEO

rick-wagonerPresident Obama took an unprecedented step toward greater control of a private corporation after forcing General Motors CEO  Rick Wagoner to leave the company. The New York Post reports “the administration threatened to withhold bailout money from the company if he didn’t.”

Writing for the Washington Post, trade analyst Dan Ikenson explained why the government is responsible for any GM failure from now on:

President Obama’s newly discovered prudence with taxpayer money and his tough-love approach to GM and Chrysler would both have more credibility if he hadn’t demanded Rick Wagoner’s resignation, as well. By imposing operational conditions normally reserved for boards of directors, the administration is now bound to the infamous “Pottery Barn” rule: you break it, you buy it. If things go further south, the government is now complicit.

Wagoner’s replacement, Fritz Henderson, said Tuesday that after receiving billions of taxpayer dollars, the company is considering bankruptcy as an option. Cato scholars recommended bankruptcy months ago:

Dan Ikenson, November 21, 2008: “Bailing out Detroit is unnecessary. After all, this is why we have the bankruptcy process. If companies in Chapter 11 can be salvaged, a bankruptcy judge will help them find the way. In the case of the Big Three, a bankruptcy process would almost certainly require them to dissolve their current union contracts. Revamping their labor structures is the single most important change that GM, Ford, and Chrysler could make — and yet it is the one change that many pro-bailout Democrats wish to ignore.”

Daniel J. Mitchell, November 13, 2008:  “Advocates oftentimes admit that bailouts are not good policy, but they invariably argue that short-term considerations should trump long-term sensible policy. Their biggest assertion is that a bailout is necessary to prevent bankruptcy, and that avoiding this result is critical to prevent catastrophe. But Chapter 11 protection may be precisely what is needed to put American auto companies back on the path to profitability. Bankruptcy laws specifically are designed to give companies an opportunity — under court supervision — to reduce costs and streamline operations.”

Dan Ikenson, December 5, 2008: “The best solution is to allow the bankruptcy process to work. It will be needed. There are going to be jobs lost, but there is really nothing policymakers can do about that without exacerbating problems elsewhere. The numbers won’t be as dire as the Big Three have been projecting.”

Cato Links

  • As the North Atlantic Treaty Organization celebrates its 60th birthday, there are signs of mounting trouble within the alliance and increasing reasons to doubt the organization’s relevance regarding the foreign policy challenges of the 21st century. In a new study, Cato scholar Ted Galen Carpenter argues that NATO’s time is up.
  • Should immigration agents target businesses knowingly hiring illegal immigrants? Cato scholar Jim Harper weighs in on a Fox News debate.
Topics:

Wednesday Podcast: ‘Turning a Corner on the War Metaphor’

Since President Bush’s “War on Terror” began in 2001, the use of a war metaphor has come with assertions of broader powers by the president. But the U.S. may be turning a corner on how terms like “war” are used, says Cato scholar David Rittgers.

In Wednesday’s Cato Daily Podcast,  Rittgers argues that President Obama’s choice to do away with the war metaphor is a step in the right direction.

Friday Podcast: ‘Obama’s Afghanistan Strategy’

President Obama has unveiled his plan for the war in Afghanistan, taking a more regional approach than the U.S. has in the past.

In Friday’s Cato Daily Podcast, foreign policy analyst Malou Innocent says it’s a critical step in the right direction, but stabilizing Afghanistan and fighting an insurgency can’t be accomplished while killing the livelihoods of so many Afghan farmers by destroying opium poppy.

In the future we should take Afghanistan as it is, rather than what we want it to be. So not only does that mean having a decreased reliance on a central state government from Kabul, but also understanding that many of the farms from these rural areas rely on the opium poppy crop for their own livelihood. So we should focus our efforts to targeting those who are in cahoots with   insurgent groups and not simply those who are depending on it for their livelihood.

Her forthcoming paper, “Pakistan and the Future of U.S. Policy” will be released next month.

No No-Fly Zones over Darfur

Should the United States lead a Western coalition to enforce a no-fly zone over Darfur, Sudan?

This idea, which has been kicking around since at least 2006, was articulated recently in the Washington Post by former Air Force Chief of Staff and Obama advisor Tony McPeak, writing with Kurt Bassuener. Back when they were campaigning, President Obama, Vice President Joe Biden and Secretary of State Hillary Clinton all backed it. So it stands a good chance of becoming US policy.

The goal is to protect Darfurians from their nominal government without a costly US effort. But the opposite seems a more likely outcome. The no-fly zone may increase the violence in Darfur. And by committing the US to Darfur’s protection and failing, it may suck us deeper into Sudan’s civil war.

Like most advocates of U.S. intervention in Sudan, McPeak and Bassuener avoid saying that what is occurring in Sudan is a war with sides rather than an irrational slaughter.  Attacks on civilians in Darfur, however reprehensible, are a tactic used by a weak, brutal central government to maintain power.

Sudan has some helicopters and Russian cargo aircraft converted into bombers that they use to support a counterinsurgency campaign executed mainly by its army and allied militias, some of which used to be rebels. The militias, in particular the horse-riding Janjaweed, kill and displace civilians because Darfur’s insurgent groups rely on them for things rebels need: intelligence, supply, and recruits.  According to the Christian Science Monitor, about 400 civilians died as result of air strikes in 2007 and 2008, a fraction of the total killed by ground forces.

Take away the air strikes, McPeak and Bassuener say, and you get leverage over Sudan’s government. The leverage can be used to compel Sudan to accept a UN peacekeeping force to augment the largely useless African Union force there now.

Leaving aside the question of logistics (patrolling Darfur would be very costly given its the massive size), this plan simply doesn’t bear much logical scrutiny.

It is an application of strategic airpower theory, which tends to make magical assumptions about the political impact of aircraft.  That theory tends to depict the enemy as an extremely cost sensitive actor ripped from the pages of economic textbooks rather than what we find in history:  governments motivated by nationalistic norms to pursue their political aims at extraordinary cost.  Sudan is not going to give up trying to unify its country because we won’t let helicopters and aircraft fly over it.

Because Darfur’s rebels could arm and police their territory behind the peacekeeper lines, allowing a real peacekeeping force into Sudan would be de facto recognition of Darfur’s secession. What leader of Sudan would accept that?

Beyond that, a no-fly zone is likely to make life worse for Darfur’s civilians. As Alan Kuperman notes, a no-fly zone, rather than forcing Khartoum to the table, is likely to drive it to increase ground attacks. We might see accelerated ethnic cleaning and slaughter occurring beneath NATO aircraft powerless to stop it, a repetition of past experience. Likewise, a no-fly zone may further discourage Darfurian rebels from coming to terms with the government, pouring further accelerant on the war. It would also keep Sudan from allowing aid workers to travel to Darfur.

A no-fly zone will also symbolize a US commitment to the dissolution of Sudan and the protection of Darfurian civilians. By accomplishing neither, it would likely produce calls for a more robust intervention – either US boots on the ground or air strikes against people on the ground. Acceding to these calls would make the United States a combatant in Sudan’s civil war. Those who push military intervention in Sudan should recognize that is the logical result of their position.

That position is not unreasonable. Full fledged intervention might protect civilians. And who wouldn’t be sympathetic to a revolt against an awful central government like Sudan’s?

But the United States needs to get out of the other people’s civil war business, not double down.  We are participating in two civil conflicts abroad now. That is too many already. And Darfur is not the world’s only humanitarian nightmare. Peacekeeping the Congo might have more humanitarian payoff.  We can’t fix everything.

That does not mean doing nothing. We should push Sudan to allow humanitarian workers full access to Darfur, condemn atrocities, and push the rebel factions to sign the peace deal outlined in 2006 or something like it.

An Intellectual Counterinsurgency

My friend (and noble peacemaker) Spencer Ackerman points us to Tom Ricks’ take on the Army’s new stability operations manual:

ricks1I wonder if the very title of the manual is incorrect. After all, we didn’t invade Iraq to provide stability, but to force change. Likewise in Afghanistan. And once we were there, we didn’t aim for stability, but to encourage democracy, which (the thought is not original with me) in a region like the Middle East generally undermines stability. I mean, if all we wanted was stability, why not find a strongman and leave?

What we really are doing in Iraq and Afghanistan, I think, is instability operations… Personally, I think the mission of changing the culture of Iraq was nuts – but that was the mission the president assigned the military.

I think a more intellectually honest title for the manual would be “Revolutionary Operations.” Don’t hold your breath.

Ricks is right, but he misses a larger problem.  The argument of the folks who want to develop COIN capabilities has become completely circular.

Take, for example, the worry of Lt. Gen William Caldwell, in unveiling the original release of FM 3-7, that we live in an “era of uncertainty and persistent conflict.” Accordingly, says Caldwell, we need capabilities to produce stability.  Hence, the stability operations field manual.

This elides the fact that if we had to take an impartial look at where the instability is coming from, a hell of a lot of it is emanating from Washington, DC.  Our Rube Goldberg political science theories, based in large part on liberal international relations theory, have led us to knock over governments and pursue radical transformation everywhere from Latin America to Eastern Europe to the mountains of Central Asia, the jungles of Vietnam, and the sands of Iraq.

Then, when confronted with the wreckage of our policy, we convince ourselves that we are gravely threatened by the instability we have created, and must enhance our capabilities to rectify this instability.  Less kindly, it’s like the Tennessee Valley Authority with guns, Humvees and translators.

Look at the new “whole-of-government” counterinsurgency guide, for example.  The issuance of the volume was predicated on the logically-true-but-practically-misleading claim that “in today’s world, state failure can quickly become not merely a misfortune for local communities, but a threat to global security.” (emphasis mine) The COIN manual then quickly proceeds to tell us that any decision to do COIN “should not be taken lightly; historically COIN campaigns have almost always been more costly, more protracted and more difficult than first anticipated.”  Then it quickly becomes a cookbook on how to use the Agriculture, Treasury, and Transportation Departments to transform the way foreigners run their countries.

My colleague Ben Friedman recently remarked that “Both Creighton’s Abrams’ reforms ensuring that the president had to activate the reserves to start a war and the Weinberger-Powell doctrine were sneaky usurpations of authority. They were also realistic efforts to avoid bad wars and on balance good things.”  He’s right.  It would be good if we were devoting a tenth the resources toward stopping the next policy disaster as we are devoting to figuring out how to execute self-destructive policies more effectively.

In short, if, as the leading COIN advocate of the moment tells us, the best way to fight the “war on terrorism” is by engaging in a “global counterinsurgency,” we’re in deep, deep  trouble.  As long as the only people who can stop us are ourselves, I’m afraid we won’t be stopped.

Power, as Karl Deutsch once wrote, is “the ability to talk instead of listen.  In this sense, it is the ability to afford not to learn.”  And we’ve got loads of power.

Week in Review: Bailout Bonuses, Marijuana and Eminent Domain Abuse

House Approves 90 Percent ‘Bonus Tax’

Sparked by outrage over the bonus checks paid out to AIG executives, the House approved a measure Thursday that would impose a 90 percent tax on employee bonuses for companies that receive more than $5 billion in federal bailout funds.

Chris Edwards, Cato’s director of tax policy studies, says the outrage over AIG is misplaced:

While Congress has been busy with this particular inquisition, the Federal Reserve is moving ahead with a new plan to shower the economy with a massive $1.2 trillion cash infusion — an amount 7,200 times greater than the $165 million of AIG retention bonuses.

So members of Congress should be grabbing their pitchforks and heading down to the Fed building, not lynching AIG financial managers, most of whom were not the ones behind the company’s failures.

Cato executive vice president David Boaz says this type of selective taxation is a form of tyranny:

The rule of law requires that like people be treated alike and that people know what the law is so that they can plan their lives in accord with the law. In this case, a law is being passed to impose taxes on a particular, politically unpopular group. That is a tyrannical abuse of Congress’s powers.

On a related note,  Cato senior fellow Richard W. Rahn defended the use of tax havens in a recent Wall Street Journal op-ed, saying the practice will only become more prevalent as taxes increase in the United States:

U.S. companies are being forced to move elsewhere to remain internationally competitive because we have one of the world’s highest corporate tax rates. And many economists, including Nobel Laureate Robert Lucas, have argued that the single best thing we can do to improve economic performance and job creation is to eliminate multiple taxes on capital gains, interest and dividends. Income is already taxed once, before it is invested, whether here or abroad; taxing it a second time as a capital gain only discourages investment and growth.

Obama to Stop Raids on State Marijuana Distributors

Attorney General Eric Holder announced this week that the president would end federal raids on medical marijuana dispensaries that were common under the Bush administration.

It’s about time, says Tim Lynch, director of Cato’s Project on Criminal Justice:

The Bush administration’s scorched-earth approach to the enforcement of federal marijuana laws was a grotesque misallocation of law enforcement resources. The U.S. government has a limited number of law enforcement personnel, and when a unit is assigned to conduct surveillance on a California hospice, that unit is necessarily neglecting leads in other cases that possibly involve more violent criminal elements.

The Cato Institute hosted a forum Tuesday in which panelists debated the politics and science of medical marijuana. In a Cato daily podcast, Dr. Donald Abrams explains the promise of marijuana as medicine.

Cato Links

• A new video tells the troubling story of Susette Kelo, whose legal battle with the city of New London, Conn., brought about one of the most controversial Supreme Court rulings in many years. The court ruled that Kelo’s home and the homes of her neighbors could be taken by the government and given over to a private developer based on the mere prospect that the new use for her property could generate more tax revenue or jobs. As it happens, the space where Kelo’s house and others once stood is still an empty dustbowl generating zero economic impact for the town.

• Daniel J. Ikenson, associate director of Cato’s Center for Trade Policy Studies, explains why the recent news about increasing protectionism will be short-lived.

• Writing in the Huffington Post, Cato foreign plicy analyst Malou Innocent says Americans should ignore Dick Cheney’s recent attempt to burnish the Bush administration’s tarnished legacy.

• Reserve your spot at Cato University 2009: “Economic Crisis, War, and the Rise of the State.”

Thursday Podcast: ‘Bureaucratic Inertia and Fighting Terrorism’

Regardless of whether the threat of terrorism is still real and eminent, bureaucratic inertia will keep the so-called war on terror on auto-pilot for years to come, says John Mueller, professor of political science at Ohio State University.

Author of the book, Overblown: How Politicians and the Terrorism Industry Inflate National Security Threats and Why We Believe Them, Mueller spoke at Cato’s January Counterterrorism conference. In Tuesday’s Cato Daily Podcast, he discusses why terrorism is no longer the prominent issue in the nation and how the government should react to the perceived threat:

My concern is that the threat that we’re trying to protect ourselves against has been massively exaggerated. Al Qaeda consists of about 150 people riding around in the hills in Pakistan…It’s not clear, in fact, that Al Qaeda has done anything really since 9/11 except put out a lot of videos…Mostly, Al Qaeda has not really done much of anything except do a lot of publicity for itself.