The Great Debate UK
from Hugo Dixon:
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.
To be fair, Cameron tried to achieve political consensus. He initially persuaded Ed Miliband, the Labour leader, to back military action. He also got Nick Clegg, the deputy prime minister and leader of the Liberal Democrats, to sign up. Both of these are also partly to blame for the fiasco. They should have attached many more conditions to their support.
Miliband quickly saw the error of his ways, especially after Ban Ki-moon, the United Nations’ secretary general, pleaded for his inspectors to be given more time to complete their on-the-scene investigation of the chemical attack. The Labour leader insisted not only on more time, but also that there should be compelling evidence of Assad’s culpability and that the government should aim to secure approval by the U.N. Security Council before launching any strike.
from David Rohde:
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:
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.
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:
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.
–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.
The new governor of the Bank of England has shaken things up at the Old Lady. Not only has he brought a touch of glamour to the Bank, he is considered a George Clooney look-alike by some, but he has dramatically altered the way that the Bank does things. Since he arrived a little over a month ago we’ve had statements released after meetings and now the Bank has adopted forward guidance.
But has this central banker with a twinkle in his eye run into a brick wall at the BOE? The forward guidance that he announced during the August Inflation Report went down like a lead balloon. The markets immediately challenged the Bank’s pledge to keep interest rates low until 2016, UK Gilt yields at one point rose to their highest level since before he joined as Governor, and the pound also jumped sharply.
from The Great Debate:
In the space of two years, ordinary Egyptian citizens have organized and led two revolutions that caused two distinct dictatorial regimes to fall. These were street-led revolutions against autocratic regimes that had the support of the U.S. and were thus seen to be invincible.
Although a large majority of Egyptians regard the two events as movements within a single revolution, they were very different in motive and structure, just as the two regimes differed radically from one another. The 2011 revolution, which brought down Hosni Mubarak, was led by the upper-middle class, who recognized the need for large-scale social change to address widespread unemployment, an ailing economy, and rampant political corruption. The more recent revolution was a movement for all, brought about by Mohamed Mursi’s government and its inability to address the root causes of discontent -- poverty, inequality, the decline of living standards -- and their focus, instead, on securing their own grip on power.
from The Great Debate:
Driven by its bailout loan terms, the Greek Parliament recently voted to lay off 25,000 more public employees. The public has responded with demonstrations while striking public sector workers try to disrupt air and rail travel, law enforcement and medical care.
How did Greece get to this point, where creditors dictate what jobs the government should cut as a condition for continued bailout loans, and where its outraged citizens take to the streets? What are the chances that Conservative Prime Minister Antonis Samaras’ newest plans to fire or cut salaries of thousands of government employees will work?
from Felix Salmon:
I'm in the UK at the moment, where it's quite amusing to see the amount of attention paid to national institutions for which there is no American equivalent. Obviously, there's the way in which a woman having a baby became front-page news for days on end, generating astonishing quantities of coverage despite the fact that all the facts could be summed up in a single tweet. And then, on the financial side of things, you have the Archbishop of Canterbury, Justin Welby.
Yes, financial. The head of the Church of England gave a long interview to a magazine called Total Politics, and if you get through the first 3,000 words or so, you'll eventually find two paragraphs on the subject of payday lending. The archbishop says he would like to compete with High Street payday lenders, helping to build up a network of "credit unions that are both engaged in their communities and are much more professional".