Economic Peace: Some Thoughts from Barcelona

Returning from a brief (9 days) blogging hiatus with a post at Foreign Exchange. The subject: a panel I was asked to speak on at IESE’s sustainable business conference in Barcelona this weekend. My topic was ‘economic peace and the private sector’s role in fostering political stability.’ An excerpt:

Specifically, the reductive tendency leads us to place emphasis on macroeconomic growth as a cure-all, when as we’ve seen in Obasanjo’s Nigeria or Ben Ali’s Tunisia or Musharraf’s Pakistan, growth can correlate quite easily with increasing political instability and conflict. For one thing, there’s the question of distribution, of how much growth is trickling down the bottom of the economic ladder to those most likely to be embroiled in crime or violence.

But even if ‘economic growth’ is replaced by a genuine focus on job creation and the building of a stable middle class, a critical challenge remains. In a society which has chosen—and this is an ideological choice—to invest its resources in militarism or theocracy but not in education or health care, an angry young man with a steady income still can’t spend it providing for his family: the services he needs aren’t there to be purchased.

Instead, they’re available to him for free from the same crowd of ‘non-state actors’ responsible for his country’s turmoil. In other words, those actors—be they mobsters or terrorists or warlords—aren’t grafting an abstract ideology onto his poverty and rage; they are producing an alternative society, complete with the services the state does not provide. It’s an ideological battle, not an economic one, to transfer a whole society’s focus and collective, public, wealth into building the social structures that make an income valuable. Without those, a little money’s not worth the paper it’s printed on.

You can read the rest here.

One postscript: left to my own devices, I’d probably have parachuted into Barcelona for a day; attended the conference and jetted out. With encouragement and company from qwghlm, I took four whole days off work. I didn’t check Twitter and Google Reader every 5 minutes; I missed thousands of tweets and hundreds of news stories; and when we got back and I caught up, I found that nothing had fundamentally changed on the big stories I’d been following. Gaddafi? Still in power. Raymond Davis? Still in legal limbo. Me? Recharged and ready to report on both.

Confusion in Foggy Bottom

An update on U.S. policy re: Egypt over at Foreign Exchange:

And today, I saw and heard a very simple explanation: there is, after the violence of last Wednesday and Thursday, a commitment to organic Egyptian democracy in some top quarters (notably the White House), and a commitment to a rapid technocratic transition in others (notably the Pentagon), and no capacity or mechanism to efficiently share information, forge a consensus across departments, and coordinate a message. The State Department, where I’m writing this, has the unfortunate task of representing that to the world.

It’s a common critique of this Administration—indecision combined with multiple centers of power—but it happens to be true. If there isn’t an official U.S. statement tonight, it’s because there isn’t an official U.S. position right now. In part, that is a reaction to a speech from Mubarak that came—according to both intelligence and diplomatic sources—as a surprise to the U.S. But it is not clear, based on the messages today and conversations with officials while I waited for the briefing-that-never-came, that there was a coordinated U.S. position before the speech either.

Read it all here.

Assorted Questions on Egypt

A quick post at Foreign Exchange laying out what I see as outstanding questions as we head into the wee hours, Cairo-time. Here’s hoping one of the intrepid reporters there right now takes some of these on:

…for the last few years, the key value of Egypt’s relationship to Israel has been economic: some $500 million worth of total trade in oil, food crops, consumer products, growing at a remarkable rate-roughly doubled since 2007 alone. If the political peace holds, but relations are frostier post-Mubarak, as Israeli representatives say they will be, and if the borders around Gaza tighten as a result, what happens to that trade? Or, will the dependency of populations in both countries on that trade prevent a political regression?

The reporters themselves seem to have become the story in the last 36 hours in a way that reminds me somewhat of the press crackdown in Pakistan in the waning hours of the Musharraf regime, but even more of the press evangelism of the 1830 revolution in Paris which old readers will know I spent some time mulling over many moons ago. Actually, what we’re witnessing across North Africa and the Middle East is somewhere in between the two, and I’m still working out how they fit together. Stay tuned.

Ben Ali’s Rhetorical Alchemy, or How the West Was Duped

An opinionated post today at Foreign Exchange on the coup in Tunisia:

Like many journalists reporting on Tunisia this weekend, I’ve been dismayed by the response coming from France. To recap, the French government backed and defended Ben Ali’s regime throughout its tenure, including in the final weeks when his forces were clashing with protesters in the streets, and when other countries–notably the U.S.–were cutting their ties. Now the dam has burst, their statement to the press translates roughly to, ‘We’ll wait and see.’ Charmant.

So I am dismayed, yes, but not entirely surprised. It is not the first time that a major Western democracy has backed a dictator in the Muslim world and found their support meaningless in the face of popular revolt: the U.S. experience with the Shah in Iran and Musharraf in Pakistan are two important precedents.

In this case, as in those, two explanations are emerging for this behavior.

Don’t you desperately want to know what they are? Find out here.