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Showing posts with label Weaknesses. Show all posts
Showing posts with label Weaknesses. Show all posts

5/9/20

USA - A failed State: he Coronavirus Revealed America’s Failures - by George Packer

 When the virus came here, it found a country with serious underlying conditions, and it exploited them ruthlessly. Chronic ills—a corrupt political class, a sclerotic bureaucracy, a heartless economy, a divided and distracted public—had gone untreated for years. We had learned to live, uncomfortably, with the symptoms. It took the scale and intimacy of a pandemic to expose their severity—to shock Americans with the recognition that we are in the high-risk category.

The crisis demanded a response that was swift, rational, and collective. The United States reacted instead like Pakistan or Belarus—like a country with shoddy infrastructure and a dysfunctional government whose leaders were too corrupt or stupid to head off mass suffering. The administration squandered two irretrievable months to prepare. From the president came willful blindness, scapegoating, boasts, and lies. From his mouthpieces, conspiracy theories and miracle cures. A few senators and corporate executives acted quickly—not to prevent the coming disaster, but to profit from it. When a government doctor tried to warn the public of the danger, the White House took the mic and politicized the message.

Every morning in the endless month of March, Americans woke up to find themselves citizens of a failed state. With no national plan—no coherent instructions at all—families, schools, and offices were left to decide on their own whether to shut down and take shelter. When test kits, masks, gowns, and ventilators were found to be in desperately short supply, governors pleaded for them from the White House, which stalled, then called on private enterprise, which couldn’t deliver. States and cities were forced into bidding wars that left them prey to price gouging and corporate profiteering. Civilians took out their sewing machines to try to keep ill-equipped hospital workers healthy and their patients alive. Russia, Taiwan, and the United Nations sent humanitarian aid to the world’s richest power—a beggar nation in utter  chaos.

Donald Trump saw the crisis almost entirely in personal and political terms. Fearing for his reelection, he declared the coronavirus pandemic a war, and himself a wartime president. But the leader he brings to mind is Marshal Philippe Pétain, the French general who, in 1940, signed an armistice with Germany after its rout of French defenses, then formed the pro-Nazi Vichy regime. Like Pétain, Trump collaborated with the invader and abandoned his country to a prolonged disaster. And, like France in 1940, America in 2020 has stunned itself with a collapse that’s larger and deeper than one miserable leader. Some future autopsy of the pandemic might be called Strange Defeat, after the historian and Resistance fighter Marc Bloch’s contemporaneous study of the fall of France. Despite countless examples around the U.S. of individual courage and sacrifice, the failure is national. And it should force a question that most Americans have never had to ask: Do we trust our leaders and one another enough to summon a collective response to a mortal threat? Are we still capable of self-government?

This is the third major crisis of the short 21st century. The first, on September 11, 2001, came when Americans were still living mentally in the previous century, and the memory of depression, world war, and cold war remained strong. On that day, people in the rural heartland did not see New York as an alien stew of immigrants and liberals that deserved its fate, but as a great American city that had taken a hit for the whole country. Firefighters from Indiana drove 800 miles to help the rescue effort at Ground Zero. Our civic reflex was to mourn and mobilize together.

Partisan politics and terrible policies, especially the Iraq War, erased the sense of national unity and fed a bitterness toward the political class that never really faded. The second crisis, in 2008, intensified it. At the top, the financial crash could almost be considered a success. Congress passed a bipartisan bailout bill that saved the financial system. Outgoing Bush-administration officials cooperated with incoming Obama administration officials. The experts at the Federal Reserve and the Treasury Department used monetary and fiscal policy to prevent a second Great Depression. Leading bankers were shamed but not prosecuted; most of them kept their fortunes and some their jobs. Before long they were back in business. A Wall Street trader told me that the financial crisis had been a “speed bump.”

All of the lasting pain was felt in the middle and at the bottom, by Americans who had taken on debt and lost their jobs, homes, and retirement savings. Many of them never recovered, and young people who came of age in the Great Recession are doomed to be poorer than their parents. Inequality—the fundamental, relentless force in American life since the late 1970s—grew worse.

he purest embodiment of political nihilism is not Trump himself but his son-in-law and senior adviser, Jared Kushner. In his short lifetime, Kushner has been fraudulently promoted as both a meritocrat and a populist. He was born into a moneyed real-estate family the month Ronald Reagan entered the Oval Office, in 1981—a princeling of the second Gilded Age. Despite Jared’s mediocre academic record, he was admitted to Harvard after his father, Charles, pledged a $2.5 million donation to the university. Father helped son with $10 million in loans for a start in the family business, then Jared continued his elite education at the law and business schools of NYU, where his father had contributed $3 million. Jared repaid his father’s support with fierce loyalty when Charles was sentenced to two years in federal prison in  he purest embodiment of political nihilism is not Trump himself but his son-in-law and senior adviser, Jared Kushner. In his short lifetime, Kushner has been fraudulently promoted as both a meritocrat and a populist. He was born into a moneyed real-estate family the month Ronald Reagan entered the Oval Office, in 1981—a princeling of the second Gilded Age. Despite Jared’s mediocre academic record, he was admitted to Harvard after his father, Charles, pledged a $2.5 million donation to the university. Father helped son with $10 million in loans for a start in the family business, then Jared continued his elite education at the law and business schools of NYU, where his father had contributed $3 million. Jared repaid his father’s support with fierce loyalty when Charles was sentenced to two years in federal prison in 2005 for trying to resolve a family legal quarrel by entrapping his sister’s husband with a prostitute and videotaping the encounter.

We’re faced with a choice that the crisis makes inescapably clear. We can stay hunkered down in self-isolation, fearing and shunning one another, letting our common bond wear away to nothing. Or we can use this pause in our normal lives to pay attention to the hospital workers holding up cellphones so their patients can say goodbye to loved ones; the planeload of medical workers flying from Atlanta to help in New York; the aerospace workers in Massachusetts demanding that their factory be converted to ventilator production; the Floridians standing in long lines because they couldn’t get through by phone to the skeletal unemployment office; the residents of Milwaukee braving endless waits, hail, and contagion to vote in an election forced on them by partisan justices. We can learn from these dreadful days that stupidity and injustice are  lethal; that, in a democracy, being a citizen is essential work; that the alternative to solidarity is death. After we’ve come out of hiding and taken off our masks, we should not forget what it was like to be alone.

Read the full report at: The Coronavirus Revealed America’s Failures - The Atlantic

3/18/14

Germany: Foundations of German Power - by Ulrich Speck

Germany today is widely regarded as the most powerful country in Europe. But it is often reluctant to take the lead. This hesitance has much to do with the foundations of German power—Berlin has considerable resources but also faces considerable constraints. Most importantly, German power is embedded in the European Union, which both enhances and confines the country’s capability to be a foreign policy player.

And on security, Berlin depends on its Western allies, especially the United States. But as the United States is reducing its footprint in Europe, Germany needs to step up its game.

German power rests primarily on the country’s economic strength. In terms of gross domestic product (GDP), Germany ranks fourth in the world, behind the United States, China, and Japan, and ahead of France and the United Kingdom. Thanks to its economic weight, Germany is a global player, a role it exercises, for example, through its membership in the G8 group of leading economies. This gives the country status, influence, and a certain independence in its decision making.

Germany has come through the global financial crisis in better shape than most European countries. It expects healthy economic growth in years to come, and the official GDP growth forecast for 2014 is 1.75 percent. With its solid manufacturing base and many “hidden champions”―globally successful small and medium-sized businesses―the German economy has drawn worldwide admiration, despite regular criticism of its strong emphasis on exports.

Read more: Foundations of German Power - Carnegie Europe

3/13/14

Is Europe's Economy Really Sick? - by Bruno Lanvin

You cannot pick up a business newspaper magazine these days without reading some article about Europe’s economic crisis; there seems to be an almost universal consensus that Europe is sick, that its institutional frameworks and governments are unfriendly to business, and that its prospects for getting better are dim.

For example, a survey answered by some 1,300 business executives worldwide that we conducted for INSEAD’s European Competitiveness Initiative shows that hardly anyone disagrees strongly with the proposition that innovation in Europe is hampered by a lack of culture of innovation and entrepreneurship, while about two thirds of those surveyed thought that Europe was actually unfriendly to innovation.

What exactly are the issues that people have with Europe’s innovativeness? Well, it’s not about the people. Half or more of those surveyed believed that European innovators were good, even world class, and that they had good business and technological skills.

The culprits were institutional. Most survey participants believed that government and financial institutions gave relatively little support to innovation.  And while innovators may have had good business skills, the general culture of business in Europe did not encourage innovation.

And who exactly is doing the complaining? The Europeans themselves seem to be pretty evenly balanced on the state of their Union. Outside Europe, though, opinions are distinctly less positive. A shocking 83% of Latin American respondents expressed concern for Europe’s future and nearly three quarters of those surveyed in the big emerging economies like China and India felt the same way. Nearly two thirds of North Americans were pessimistic.

But is all this negativity really justified? A seemingly contradictory message is emerging from other surveys and analyses that I and my colleagues at INSEAD and across partner institutions such as the World Economic Forum, Harvard or Cornell conduct for the Global Innovation Index Report (GII), the Global Information Technology Report (GITR), and the Global Talent Competitiveness Report (GTCI).
Let’s look at innovativeness. The data that goes into creating the Global Innovation Index is based on some 84 variables, covering over 140 countries. It gives us a reasonable sense of how successful at innovation different countries and regions are.

The US is usually seen as a hotbed of innovation. And it is certainly in the top ten. But in 2013 it was comfortably beaten by Singapore and Hong Kong and by four other countries: Denmark, Finland, Sweden, and Switzerland. What’s more, the countries just below the US and Canada are all European as well. Of course, not all the European countries are as successful as those listed here, but on an aggregated regional level, we find that Europe is just as innovative as the US, and that both are well ahead of the other world regions.

And what about those anti-competitive social systems? Take a look at this chart, which plots country competitiveness scores as per the Global Competitiveness Index against the proportion of GDP spent on welfare. Strikingly, the most innovative countries all spend a lot on the social safety net. Of course, correlation is not causality, but it does at the least suggest that social protection and competitiveness are not mutually exclusive.

So is Europe really sick? Maybe, but not perhaps in the way we think, and very possibly it’s at least somewhat psychosomatic.

Read more: Is Europe's Economy Really Sick? - Bruno Lanvin - Harvard Business Review