The Great Debate UK

from John Lloyd:

On Syria, England defects

Thursday’s British House of Commons vote against Britain aiding in a Syrian intervention led me to center on one question: what will happen to the U.S.-UK relationship? Is that alliance now gravely weakened? Can it survive in a meaningful form?

Specifically, will Britain ever again be able to partner with the United States in any future military interventions? Without Britain, the United States will certainly carry on. It has a new best friend in France -- french fries top of the menu now! -- and maybe Turkey will be willing, too. In the UK, Prime Minister Cameron says Britain will remain committed to mobilising opposition to the Assad regime, delivering humanitarian aid, and deploring the use of chemical weapons.

George Osborne, the chancellor, said that the U.S.-UK relationship was a “very old one, very deep and operates on many layers.” President Obama, in an astonishingly passionate speech he gave to the UK Parliament in May 2011, agreed, calling it “one of the oldest, one of the strongest alliances the world has ever known.”

After the vote, both sides did a bit of squirming, saying that democracies sometimes bite leaders’ bottoms. And, to be sure, the UK and the U.S. have taken quite different views since World War Two -- on the Anglo-French-Israeli invasion of Suez, on Vietnam, on the U.S. invasion of Grenada -- with “bruises on both sides” (as a U.S. memo on the Grenada row between Margaret Thatcher and Ronald Reagan put it), but no lasting damage. 

from Mark Leonard:

Syria and the politicization of British foreign policy

Syria’s population -- at the heart of so many proxy battles for influence -- last night found itself drawn into a different kind of conflict -- this time over the future of British politics. After the British Parliament's vote against action in Syria, the former Liberal Democrat leader, Lord Ashdown, tweeted that Britain is a "hugely diminished country" this morning: “In 50 years trying to serve my country I have never felt so depressed/ashamed.” But is he right to see this vote as a retreat into isolationism? I think it is rather a step into a more modern diplomacy, one where politics do not end at the water’s edge.

Once the dust settled on the vote, David Cameron’s closest ally, Chancellor George Osborne, said there will be a lot of "soul-searching" about Britain’s role in the world. There is talk about the shadow of Iraq, pacifism and anti-Americanism as a result of an unholy alliance between conservative little-Englanders and pacifists of the left. But though these tendencies were both represented in the lobbies of the House of Commons, they still represent a minority of the political spectrum. It is worth remembering that the Labour leader Ed Miliband did not argue against military action in principle, and even made a point of saying he could support intervention without a U.N. Security Council resolution.

Who’s to blame for market glitches?

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–Tanuja Randery is the CEO of trading services firm MarketPrizm. The opinions expressed are her own.–

A recent spate of high profile trading glitches at NASDAQ, Goldman Sachs and China-based brokerage Everbright, have once again put the spotlight on electronic trading technology and in particular, high frequency trading (HFT), which uses complex algorithms to analyze multiple markets and execute orders based on market conditions.

from The Great Debate:

An agenda to boost Africa’s economy

A lot can happen in a year. This time last year, U.S. businesses and NGOs bemoaned the Obama administration's perceived indifference to Africa. Now, they’re trying to find out how to catch the wave of interest. Major new initiatives, including Power Africa and Trade Africa, unveiled during President Obama’s first true trip to Africa this summer, as well as a reinvigorated push to renew the African Growth and Opportunity Act fully two years before it's due to expire, have given U.S.-Africa watchers a lot to consider. But what -- and when -- is enough for U.S. policy in Africa? What more can be done in the year ahead? How do things really shake out for investors, civil society and Africans? Here are three additional areas the Administration should consider as it deepens its commitment to the continent:

1. Invest in Africa’s equity and commodity markets. ­Despite all the interest in Africa’s economic growth and investment potential, it’s still very hard to invest on the continent. Of its less than 30 stock markets, only a few exchanges really offer modern processes and back-end technology to facilitate daily transactions. As Todd Moss from the Center for Global Development notes in a recent paper, some African exchanges trade less in a whole year than New York does before “their first coffee break.” As a result, for institutional investors who need to take large positions or who have fiduciary requirements for daily liquidity, Africa remains almost entirely off-limits. In an era of algorithmic and high-speed trading, Africa’s antique market infrastructure is a major barrier to entry for much needed foreign direct investment.

from Hugo Dixon:

Cameron, UK hurt by Syria vote fiasco

Rarely has a UK prime minister done so much damage to himself in a single week as David Cameron has with his mishandling of a vote authorising military action against Syria. Cameron may cling onto power after his stunning parliamentary defeat on Thursday night, but he will cut a diminished figure on the domestic and international stage. In the process, he has also damaged Britain’s influence.

Cameron’s litany of errors began with his decision to recall parliament from its summer holidays in order to give the green light to British participation in a military strike designed to punish Bashar al-Assad’s murderous regime for its alleged use of chemical weapons against its people last week. The decision to get parliament’s approval was right, even if not constitutionally necessary. The mistake was to rush things before all the evidence of Assad’s culpability had been gathered and published. In France, which is also contemplating military action, the parliamentary debate is scheduled for next week.

from David Rohde:

Has Iraq shackled American power?

In an extraordinary series of disclosures this week, Obama administration officials said that the United States will launch only cruise missile strikes in Syria. The attacks will last roughly two or three days. And the administration’s goal will be to punish President Bashar al-Assad, not remove him from power.

But those clear efforts to placate opponents of military action appear to be failing. Warnings of “another Iraq” are fueling opposition to the use of force on both sides of the Atlantic. And the Obama administration’s contradictory record on secrecy is coming back to haunt it.

from The Great Debate:

King’s legacy in the Age of Obama

When President Barack Obama delivers a speech at the Lincoln Memorial Wednesday, on the 50th anniversary of the March on Washington, he will inevitably be compared to Martin Luther King Jr., whose oration that day framed the moral purpose of the civil rights movement.

But there are huge differences between the prophetic icon and the political prodigy that reveal the competing and, at times, conflicting demands of the vocations they embraced. If we fail to understand the difference between the two, we will never appreciate the arc of their social aspiration -- or fairly measure King and Obama’s achievements.

Roll up, roll up – welcome to the great taper farce

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We are at the stage of the financial cycle where central banks turn into circuses and central bankers become the circus performers. The market is transfixed by the show, watching every move and trying to anticipate what trick or shock will come next.

What is interesting about this particular circus is that the Ringmaster is about to leave, their replacement is turning into a whole new show of its own.

from The Great Debate:

China’s real problem with Bo Xilai’s legacy

In China, the political lens is focused on Bo Xilai, the disgraced former commerce minister and party chief of megalopolis Chongqing. While Bo’s contestation of the charges of bribery and abuse of power gripped the attention of the social media this week, Bo will probably not be a free man again and certainly not a public figure.

What the trial can’t undo is Bo’s legacy—which opened new channels for popular and elite dissent that is likely to haunt China’s new leadership.

UK startups need to get big enough to fail

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–Amanda Jobbins is Group Chief Marketing Officer of The Sage Group. The opinions expressed are her own.–

Start-ups are hot on the business news agenda. Their importance to the UK, and the economic recovery, has been emphasised by the vocal support David Cameron’s government has repeatedly voiced for start-up initiatives. The decision to employ Facebook’s former Vice President Joanna Shields as CEO of Tech City is a clear demonstration of the government’s investment, while the Conservative Party launched its own ‘Start Up Hub’ competition in Manchester earlier this year, which provides entrepreneurs with an opportunity to showcase their ideas.

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