This is a piece I wrote 11 years ago for this crappy financial magazine I used to work for. The piece is good though. It’s about Bruce Jackson, an American spy-banker-arms-dealer-policy-wonk, who helped lobby for the eastern expansion of NATO in the 90s and Noughties. I thought I’d post it here considering this week’s NATO conference on further eastern expansion and Russia’s response. The piece was written in 2003, in the middle of the second war in Iraq.
IT WAS THE deal of the year in central and eastern Europe – not a sovereign Eurobond, a corporate high-yield issue or an IPO, but a transaction that emerged from the heart of the military-industry complex. It was the biggest debt financing of the year – a $5.5 billion off-balance-sheet deal arranged by JPMorgan and guaranteed by the US government. You haven’t read about it, because it was to finance Poland’s acquisition of 48 F-16 military aircraft from Lockheed Martin.
That deal was signed in March 2003. The same month it went through, Poland agreed to send about 3,000 troops to Iraq. Euromoney spoke to a banker involved in the syndication of the financing. “We understood what the deal was,” he said. “The US government finances the deal at good rates. In return, Poland supports the US in Iraq.”
Every other eastern European country that has either recently joined or is waiting to join the Nato military alliance also supports the US campaign in Iraq, leading US defense secretary Donald Rumsfeld to praise the birth of “new Europe” and French president Jacques Chirac to tell these countries to shut up.
Man of influence
The figure at the centre of all these events is someone you probably haven’t heard of, but who wields extraordinary political influence in the region – Bruce Jackson. He is a Washington neo-conservative, a member of the Project for the New American Century, and friend and colleague of other prominent neo-conservatives such as deputy defense secretary Paul Wolfowitz and Gary Schmitt, executive director of the Project for the New American Century.
A former investment banker, he’s also president of a private NGO called the US Committee on Nato, one of the most influential in eastern Europe. He has also headed a neo-conservative think-tank called the Committee for the Liberation of Iraq. And he’s a former vice-president at Lockheed. Is he the military-industrial complex conspiracy figure par excellence?
Jackson, through his work for the NGO, has done more that anyone else to get eastern European countries into Nato. First, he lobbied hard in Washington to get the Czech Republic, Hungary and Poland invited in 1999. He advised the heads of these states on how to reform their military forces and civil societies so as to get the invitation, and testified in their support to the US Senate committee on foreign affairs.
In the past two years, he has been equally active in getting most of the other eastern European countries invited to Nato. He has travelled relentlessly, meeting heads of state and foreign ministers in every eastern European country, advising them on how to reform, and helping, this year, Bulgaria, Estonia, Latvia, Lithuania, Romania, Slovakia and Slovenia to get invitations to join Nato.
None of the accessions was by any means inevitable. It took vision, will and hard work. Jackson recalls: “When we started in 1995, around 70% of editorial boards and 80% of think-tanks were on the record as being opposed to Nato expansion. There was concern Russia would go ballistic if we did expand Nato east. So effectively people were suggesting we do another Yalta, and sacrifice the region to Russia’s interests. So it took us considerable amounts of work. We organized well over 1,000 meetings with senators and Congress. By 1999, we won 89% of the vote. With the second round, almost all the effort came from the countries themselves, trying to accelerate their own reforms and not be left out.”
The fact that in 1995 so many in the west were against Nato expansion makes it all the more remarkable that one man, apparently operating in a private capacity at an NGO he set up, should have had such an influence. As one diplomat in the region says: “All these countries getting into Nato – this was Bruce’s work. He’s a real player in this process.” (more…)
I feel for ‘the sweaty man in the third row’. We’ll all been there.
GD readers might find interesting this piece by Columbia University’s Mark Mazower, from the FT this weekend. He has a book coming out in October on the history of the idea of global governance. Brief highlights:
“They decided without us. Let us advance without them,” reads the slogan on the website of Syriza, the leftwing Greek party that shot to prominence after elections this month. But what emerges as one reads on is less a clear strategy for the country’s future than a worldview suffused with the images and memories of its turbulent past. Here, the fight against today’s perceived enemy – neoliberalism – evokes the struggle against the military junta 40 years ago, and the resistance to Nazi occupation during the second world war…Alexis Tsipras, Syriza’s leader, is too young to remember this: he was born just as the junta fell, in the summer of 1974. However, his party’s language reminds us that the eurozone crisis is raising some deep historical questions about what has happened to politics, to democracy and to the very idea of international co-operation.
It was in Europe, two centuries ago, where the idea emerged that the world was a governable place. This idea was radically new: the term “international” itself was coined by British philosopher Jeremy Bentham and only entered general circulation in the decades after Napoleon’s defeat. Although nationalism was emerging as a potent force at this time, the supporters of international co-operation were not alarmed. On the contrary, they believed that nationalism and internationalism were soul mates, that a continent of vibrant national democracies necessitated co-operation among its diverse people. Novelist Victor Hugo conjured up the vision of a federal Europe to a wildly cheering audience of peace activists in Paris in 1849; the Italian revolutionary Giuseppe Mazzini inspired US president Woodrow Wilson with his idea of a society of democratic nations.
If Wilson’s ill-fated League of Nations was one outcome of such views, other internationalists fought equally hard for free trade, or for communism. But the second world war saw anti-fascists in Europe return to the idea of federation for the continent as an antidote both to the bellicose nationalism of Hitler and Mussolini, and to the hopeless high-mindedness of the League. They believed that without integration, Europeans would continue to fight indefinitely; with it, the nation could be tamed and the needs of the weakest members of society guaranteed.
The origins of the EU thus reflect the persistence of the old idea that international co-operation is the best guarantee of national well-being. US support for European integration was premised on the belief not only that it would boost growth and keep communism at bay but that it would revive democracy itself. The early decades of the common market coincided not only with unprecedented productivity gains and growth across western Europe, but simultaneously with significant falls in inequality and enhanced spending on social services and welfare.
That achievement seems to belong to an almost neolithic past. The past 25 years have seen many of those gains reversed and have thrown into question the notion that national sovereignty and international co-operation are complementary. The architects of this reversal were not philosophers such as Bentham or revolutionaries such as Mazzini but sober technocrats such as Paul Volcker and the IMF’s Michel Camdessus. Managers of the global monetary system after the oil shocks of the 1970s, they believed that international prosperity and stability depended upon the liberalisation of capital movements. Europe’s enthusiastic participation in this financialisation of the global economy has had striking if largely unintended consequences.
All international organisations require their members to give up some sovereignty in exchange for the benefits of joining the group. But in earlier times, this choice did not entail anything close to the kinds of sacrifices that are required today. Legislatures within the EU, and especially within the eurozone, are now obliged to cede discretionary power to unelected central bankers, judges, bureaucrats and industry regulators. One does not have to be a supporter of Syriza to see how this allows established political parties in difficult times to be turned into stooges of shadowy special interests.
So what is at stake in the eurozone crisis goes beyond the consequences of a Greek exit and beyond even the future of the EU itself. The crisis has thrown into question the very idea that the world can be governed.
Two news stories caught my eye this weekend. Firstly, the British government wants to launch a voucher scheme so every parent can take parenting classes from a range of providers. One of them is called the Parenting Gym, and is owned by Octavius Black, the millionaire school-chum of David Cameron’s, who made his fortune through Mind Gym, a corporate well-being consultancy.
The other story was that the Templeton Foundation has given a multi-million-pound grant to Birmingham University to set up a Jubilee Values and Character Centre. The press release says:
How does the power of good character transform and shape the future of society? What would be the wider social, cultural and moral impact of a more grateful Britain? What personal virtues should ground public service? How can fostering character traits like hope and optimism be help working towards a better British society? The Centre will initiate a national consultation on a proposed curriculum policy for character building in schools, and will run a 10-year project at Birmingham called ‘Gratitude Britain’.
These are the two latest trumpet-blasts from a movement which has been dubbed the New Paternalism. The phrase originally appeared from Nudge psychologists like Richard Thaler and Cass Sunstein, who call their nudge policy interventions ‘libertarian paternalism’. They want to nudge people in pro-social directions without them realising it (hence it’s ‘libertarian’ – because the citizens are so dumb they don’t realise they’re being guided).
But there are other New Paternalists who are much bolder. They want to instil good values in the citizenry, create good habits, foster good character. They are similar to Victorian paternalists like Matthew Arnold, but they take his lofty Hellenic philosophy and try to put it on a firm evidence base, to create a science of resilience, optimism and other ‘character strengths’.
I call this movement the Vickys, after the tribe in Neal Stephenson’s The Diamond Age. It’s a steam-punk novel about a future society that has fragmented into a collection of tribes or ‘phyles’, each with their own culture and moral code – including a Nation of Islam tribe, a neo-Confucian tribe, and the Vickys, who are cyber-engineers and who follow Victorian customs. Basically, success in this society is all about what phyle has accepted you. Your character depends on your moral culture. The book tells the story of how the leader of the Vickys hires a nano-engineer to code an interactive ‘gentleman’s primer’ to cultivate the character of his niece – except it gets stolen and discovered by a street orphan, who subsequently rises to the top of her society.
The Vickys include Martin Seligman and the Positive Psychologists, who have got enormous backing from Templeton for their research into character strengths and resilience training, and who launched a $125 million course in resilience-training for the US Army. Like Stephenson’s Vickys, they want to create a computer-automated course in moral education – an app for character. The Vickys also include include self-control psychologists like Roy Baumeister, and champions of ‘social and moral capital’ like Jonathan Haidt and Robert Puttnam.
In the UK, the Vickys include Wellington headmaster Anthony Seldon and his new colleague, the young former policy advisor James O’Shaughnessy, who has gone back to Wellington to set up a chain of Wellington academies; Matthew Taylor of the RSA; Matthew Grist and Jen Lexmond of Demos; the Young Foundation; David Goodhart of Prospect Magazine; Danny Kruger, another former Tory advisor who now runs a charity for former prison inmates; Lord Richard Layard of the LSE; and, more speculatively, Alain de Botton, whose more recent writings have called for a shift beyond liberalism and back to a more interventionist paternalism.
Anthony Seldon described the New Paternalist ethos in the Telegraph this week. He wrote:
Character, and specifically its neglect, is the number one issue of our age. A society that is not grounded in deep values, that doesn’t know who its heroes are and that lacks a commitment to the common good, is one that is failing. Such we have become… The riots in British cities in August 2011 were the catalyst for the creation [of the new Jubilee Centre for Character and Values]. As the fires subsided, a call was heard across the nation for a renewed emphasis on communal values and ethical teaching, which would discourage such events happening again. It is an indictment of us all that such a centre should ever need to have been established…The development of a sense of gratitude among people in Britain will be at the heart of the work. The character strengths it will advocate are self-restraint, hard work, resilience, optimism, courage, generosity, modesty, empathy, kindness and good manners. Old-fashioned values, maybe. Some will sneer, and ridicule them as middle class or “public school”. But these are eternal values, as advocated by Aristotle and countless thinkers since.
I am interested in this movement, and attracted to some aspects of it. My new book is about the contemporary fusion of virtue ethics with empirical psychology, and how this new fusion is being spread by public policy in schools, the army and beyond to foster character, resilience, eudaimonia and other such ideals. I got into the scene when Cognitive Behavioural Therapy helped me overcome depression in my early 20s, and I then found out how much CBT owed to ancient Greek philosophy. I’m a huge fan of Greek philosophy and its practical therapeutic use today, so a part of me loves the renaissance of virtue ethics in modern policy.
But we have to be aware of the ideological and political context of these efforts in mass character education. It can all too easily seem like rich people telling poor people to buck up and be a bit more moral. It can ignore the economic and environmental context and how that dynamically feeds into character. I’m not saying character is entirely caused by economic context. But it’s certainly a factor – Aristotle himself knew that. He insisted eudaimonia was as much made up of external factors like wealth and the kind of society you live in. If you’re too poor or your society is too unequal, he warned, it would be very difficult for you to achieve eudaimonia or for your society to find the ‘common good’. (more…)
You’ve probably already seen this but…this site is quite funny: http://textsfromhillaryclinton.tumblr.com/ As the name suggests, its photos of Secretary Clinton exchanging texts with various other people. For example: