by Alex Evans | Jan 13, 2009 | Cooperation and coherence, Economics and development, Global Dashboard, UK
As everyone waits to see what Obama plans to do about reforming foreign assistance in the US, back here in Britain change is in the air too: the Conservatives are coming clean about what they really think about DFID, the Department for International Development.
For a while now, there have been whispers that the Tories don’t really buy into the idea of an independent DFID – and that perhaps (gasp!) they might be considering merging it back into the Foreign Office, where it resided until 1997. Well, following last week’s Independent interview with Conservative aid spokesman Andrew Mitchell, we can put that notion to rest: “We are very committed to DFID continuing as an independent department of state”, says he.
So, a ringing endorsement of DFID, then? Er, not quite. Here’s the full context:
The shadow International Development Secretary, Andrew Mitchell, said DFID had begun to encroach on the work of other departments and to come “perilously close” to setting its own foreign policy, a role he said should be reserved for the Foreign Office. He said the Foreign Office will be given much greater influence over the use of overseas aid should the Tories win the next election …
“There are times when DFID comes perilously close to pursuing its own foreign policy and that is not right,” Mr Mitchell said. “Foreign policy is decided by the government and the Cabinet, led by the Foreign Office, and DFID should not be an alternative to this. We are very committed to DFID continuing as an independent department of state. But we would make it more of a specialised development department and a little less like an aid agency,” he said.
That left me wondering just which specific instances Mitchell was thinking of in arguing that DFID was coming close to having its own foreign policy. Iraq? Afghanistan? Climate change? (Thinking that Paul Wolfowitz might not be such a great idea for President of the World Bank?) Sadly, we don’t know. Earlier today I called his office to ask him to elaborate, but he declined to say more.
This is a shame, on two counts. First, because it’s a cop out. For the Opposition front bench spokesman on international development to argue that the Department he shadows has come ‘close to pursuing its own foreign policy’ is a serious claim – and one which he ought to be prepared to substantiate. To fail to do so leaves him open to accusations of offering soundbites rather than reasoned argument.
More fundamentally, though, it’s a shame that Andrew Mitchell wouldn’t elaborate because this debate needs to be had. (more…)
by David Steven | Jan 11, 2009 | Climate and resource scarcity, East Asia and Pacific, Global Dashboard, Global system, London Summit, North America
[youtube]http://www.youtube.com/watch?v=iRzr1QU6K1o[/youtube]
In last month’s New Atlantic, James Fallows had a fascinating interview with Gao Xiqing, Chief Investment Officer at China’s sovereign investment fund, and the man responsible for a significant chunk of China’s huge holdings of American dollars.
Gao – who Fallows dubs one of the US’s new banking overlords – thinks Americans need to learn some humility and fast.
“The simple truth today is that your economy is built on the global economy,” he says, “and it’s built on the support, the gratuitous support, of a lot of countries. So why don’t you come over and … I won’t say kowtow [with a laugh], but at least, be nice to the countries that lend you money.”
The US should disentangle itself from expensive overseas conflicts, Gao believes, raise its diplomatic game, and – above all – tell its citizens to get saving as part of a “long-term, sustainable financial policy.”
It’s all well and good, but maybe Fallows should have pushed Gao a little harder on whether China’s own financial policy is sustainable. After all, despite recent appreciation, the yuan remains substantially under-valued against both the dollar and the euro – the main reason why the Chinese has ended up holding so much Western debt.
Gao’s comments on the dollar are somewhat contradictory (and reflect all the ambiguity of China’s own dollar position). On the one hand, it defends its status as a reserve currency. The US is still the most viable and predictable market, he says. But on the other, Chinese investment in the dollar is widely unpopular at home. According to Gao, China’s citizens ‘hate’ its support of rich Americans (“people eating shark fins”) at the expense of “poor [Chinese] people eating porridge.”
More significant than public pressure, perhaps, is Gao’s belief that the dollar is highly likely to lose value over the short to medium term (with a corresponding appreciation for the yuan). This will wipe billions of Chinese reserves (reserves that have only been built up through consumption foregone) – while challenging China’s export-led growth model:
We are not quite at the bottom yet. Because we don’t really know what’s going to happen next. Everyone is saying, “Oh, look, the dollar is getting stronger!” [As it was at the time of the interview.] I say, that’s really temporary. It’s simply because a lot of people need to cash in, they need U.S. dollars in order to pay back their creditors.
But after a short while, the dollar may be going down again. I’d like to bet on that! The overall financial situation in the U.S. is changing, and that’s what we don’t know about. It’s going to be changed fundamentally in many ways.
Unravelling these imbalances seems certain to be ugly. Reading George Cooper’s book, The Origin of Financial Crises, on a plane the other day, I was struck by strong parallels between today’s economic woes, and a crisis we have heard little about recently – the ‘Nixon Shock’ that led to the end of the Bretton Woods system. (more…)
by Mark Weston | Jan 5, 2009 | Africa, Conflict and security
As the US responds to Somali piracy the only way it knows how – through force – Johann Hari in the Independent reveals that it is not just illegal foreign fishing vessels (which steal $300m worth of fish every year) that have aggravated Somalis and encouraged them to resort to piracy. Europeans have also been dumping nuclear waste in the sea off the Somali coast:
As soon as the government was gone, mysterious European ships started appearing off the coast of Somalia, dumping vast barrels into the ocean. The coastal population began to sicken. At first they suffered strange rashes, nausea and malformed babies. Then, after the 2005 tsunami, hundreds of the dumped and leaking barrels washed up on shore. People began to suffer from radiation sickness, and more than 300 died.
The UN envoy to Somalia told Hari, “Somebody is dumping nuclear material here. There is also lead, and heavy metals such as cadmium and mercury – you name it.” According to Hari, “Much of the waste can be traced back to European hospitals and factories, who seem to be passing it on to the Italian mafia to “dispose” of cheaply…This is the context in which the “pirates” have emerged. Somalian fishermen took speedboats to try to dissuade the dumpers and trawlers, or at least levy a “tax” on them.”
The buccaneers are popular with local people. 70 per cent of Somalis interviewed by a local news site “strongly supported the piracy as a form of national defence.” The case against pirates has never been as black and white as the world’s great powers like to paint it. Hari tells the story of one of their number who was captured by an earlier superpower in the 4th century BC:
He was brought to Alexander the Great, who demanded to know “what he meant by keeping possession of the sea.” The pirate smiled, and responded: “What you mean by seizing the whole earth; but because I do it with a petty ship, I am called a robber, while you, who do it with a great fleet, are called emperor.”
by Daniel Korski | Jan 5, 2009 | Conflict and security, Cooperation and coherence, North America
Retired Navy Admiral and former commander of U.S. Pacific forces, Dennis C Blair, has reportedly been chosen as Barack Obama’s next Director of National Intelligence (DNI), the country’s senior intelligence job.
Blair, a 6th generation, Oxford-educated naval officer, occupies a number of teaching posts and once served as the first associate director of CIA for military support. He also ran the federally-funded Institute for Defense Analysis before being forced out after a conflict of interest dispute.
But it is his role as the Deputy Director of the Project on National Security Reform, a bi-partisan, Congressionally-funded reform initiative, that may say most about how, if confirmed, Blair intends to manage the U.S intelligence community. For despite the misgiving of some like Bob Baer, the former CIA analyst, Blair is both a manager and a reformer.
During my time in Washington, DC, I spent a little time with Blair, who struck me as a reformer with deep insights into how both soldiers and spies work and think. See this clip where he argues that the U.S government needs to work on the basis of “integrated, agile, collaborative, inter-agency teams” rather than the departmental stove-pipes currently in existence. Not the sound of a status-quo thinker.
Being reform-minded, however, will only go so far. Blair will need to will reform, demand reform, and pursue reform. For most intelligence-watchers believe that the Bush administration’s post 9/11 intelligence reforms were hurried and have created as many problems as they have solved. The current spy chief, Admiral Mike McConnell has done what he could to improve the situation, launching a 100-day initiative when he took over from John Negroponte, to improve “integration and collaboration” across the many intelligence agencies. Meanwhile Robert Gates has scaled down the Pentagon’s footprint on intelligence.
Yet most people believe the situation needs to improve further if the U.S is to get more for the $43 billion it spends annually on intelligence. The Office of the Director of National Intelligence has become a large bureaucratic contraption with hundreds of personnel camped out in a Washington airbase. Many staff are unclear about their roles vis-à-vis their CIA colleagues.
The DNI himself, though he briefs the president daily, has only limited authority over the 16 agencies in the intelligence community as the reform legislation did not give the spy chief the kind of budgetary muscle needed to lead the intelligence community. In spite of the efforts of Gates and McConnell the National Security Agency, the National Geospatial-Intelligence Agency and the National Reconnaissance Office remain under Pentagon’s command.
Then there is the question of domestic intelligence. Many believe the U.S should create a domestic intelligence agency like Britain’s Security Service. But how to do so and avoid adding complexity to the intelligence system, slowing down rather than promoting information flows among the existing agencies, while respecting civil liberties? And who would run such an agency – the DNI, the Homeland Security Secretary, the FBI, the CIA?
Finally, there is a need to look again at Congress’ role. Oversight has deteriorated amid battles between different committees. The President’s Foreign Intelligence Advisory Board and the Intelligence Oversight Board have also atrophied in the last eight years while the Bush administration failed to create a Civil Liberties Board, despite being mandated to do so by Congress.
Blair seems well-placed to lead a reform process without allowing it to descend into something like the Church Committee hearings, which investigated intelligence-gathering by the CIA and FBI after the Watergate affair, but ended up encouraging many of the intelligence community’s bad traits. No doubt his confirmation process will drag up the conflict-of-interest case that forced him out of his last government-funded job, as well as his controversial role in opening diplomatic ties with Suharto’s Indonesia.
But the real question is: how ambitious will Obama be in leading changes in Congress; and reforms in the Executive Branch to ensure a well-functioning intelligence apparatus that can deal with foreign and domestic threats, produce politically-neutral assessments, work with other government departments and guarantee civil liberties. Obama’s choice of Blair shows the President Elect wants to reform, but also wants to keep the intelligence community on board.
by David Steven | Dec 8, 2008 | Off topic
It was a very busy weekend on Global Dashboard. So in case you missed it:
