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from The Great Debate:

Clashes with Russia point to globalization’s end

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As the European Union and the United States ramp up their sanctions on Russia, President Vladimir Putin’s plans for retaliation seem to include an attack on McDonald’s. There could not be a more powerful symbol that geopolitics is increasingly undoing the globalization of the world economy.

The burger chain was celebrated in the 1990s by the journalist Thomas Friedman’s “Golden Arches theory of conflict prevention,” which argued that the spread of McDonald’s around the world would bring an end to war. But almost 25 years after a McDonald’s restaurant opened in Moscow, it seems that deep interdependence has not ended conflict between great powers – it has merely provided a new battlefield for it.

As in any relationship that turns sour, many of the things that initially tie the parties together are now being used to drive them apart. For the past two decades we have heard that the world is becoming a global village because of the breadth and depth of its trading and investment links, its nascent global governance and the networks of the information age. But those forces for interdependence are degenerating into their opposite; we could call it the three faces of ‘splinterdependence’: From free trade to economic warfare

Economic interdependence was supposed to defuse geopolitical tensions over time – or at least allow the two to be compartmentalized. But today the West is using Russia’s participation in the global economy to punish it for its actions in eastern Ukraine. The EU has announced sanctions that will hit Russia in the banking, oil and defense industries. When China felt its interests were threatened, it was also willing to use economic sanctions in its territorial disputes with the Philippines and Japan. In May, Beijing found itself on the receiving end as Vietnam turned a blind eye to anti-Chinese riots targeting Chinese plants when China put an oil rig in the disputed Paracel Islands.

from The Great Debate:

To combat Ebola, first build back trust in healthcare workers

Medical staff working with Medecins sans Frontieres prepare to bring food to patients kept in an isolation area at the MSF Ebola treatment centre in Kailahun

The worst-ever outbreak of Ebola is spreading out of control in Guinea, Liberia, Sierra Leone, and now Nigeria, where almost 700 people have already died from the virus. Healthcare workers caring for Ebola patients have themselves fallen victim to the disease, including two American physicians.

And, at its root, the size of this outbreak can be blamed on a lack of trust in healthcare workers.

from The Great Debate:

Need to learn to launch a BUK missile quick? Look online.

A Buk M-23 air defence missile system is seen on display during the opening of the MAKS-2009 international air show in Zhukovsky outside Moscow

No one has admitted responsibility for firing the sophisticated missile that brought down Malaysia Airlines Flight 17, killing 298 people over Ukraine on July 17. But untrained rebels could probably have done it with a little practice. There are even instructions online, making it possible for nearly anyone who comes into possession of one of these systems -- anywhere in the world -- to use it.

Washington and Kiev both blame Russian-backed separatists from the self-proclaimed Donetsk People's Republic for attacking the plane with a 9k37 BUK missile system. These rebels had bragged about possessing the weapon before the attack.

from The Great Debate:

Putin’s anti-American rhetoric now persuades his harshest critics

People I know in Russia, members of the intelligentsia and professionals who have long been critical of President Vladimir Putin’s anti-Western stance, have suddenly turned into America-bashers. Many have been swept away by Putin’s arguments that the United States, not the Kremlin, is destabilizing Ukraine.

Since the current crisis broke in Ukraine over its efforts to side with the European Union rather than Russia, Putin has been at war with the United States. He seems intent on proving that a U.S.-centric world order is over and that Europe should decide on its own what its relations with Russia will be.

from The Great Debate:

CDC mishaps show live flu viruses are nothing to play with

ISRAELI MEDICAL PERSONNEL PREPARE SMALLPOX VACCINE IN JERUSALEM.

Over the past two months, a series of mishaps at the CDC and NIH -- involving mishandled anthrax, mislabeled influenza and misplaced smallpox -- has alarmed the scientific community. The common theme surrounding all of them is human error.

In June as many as 75 workers were exposed to live anthrax when researchers, failed to properly verify that anthrax spores were sterilized before moving them out of the high-level biosafety laboratory. In early July, NIH researchers discovered previously unknown stores of live smallpox at the NIH and transported them to the CDC for secure storage. Around the same time, the CDC disclosed that last March, several vials of supposedly mild influenza had been cross-contaminated with the highly lethal H5N1 strain of bird flu, exposing researchers to unanticipated risk of infection. A senior-level CDC director has now resigned and a major review of biosafety security protocols at the CDC and NIH is currently underway -- but more should be done.

from Anatole Kaletsky:

Markets: Exuberance is not always ‘irrational’

A pedestrian holding his mobile phone walks past an electronic board showing the stock market indices of various countries outside a brokerage in Tokyo

With the stock market continuing to hit new highs almost daily despite the appalling geopolitical disasters and human tragedies unfolding in Ukraine, Gaza, Syria and Iraq, there has been much head-scratching about the baffling indifference among investors. Many economists and analysts see this apparent complacency as a symptom of a deeper malaise: an “irrational exuberance” that has pushed stock prices to absurdly overvalued levels.

The most celebrated proponent of this view is Robert Shiller, the Nobel Prize-winning, Yale University economist who is often credited with predicting both the 2000 stock market crash and the bursting of the U.S. housing bubble. Shiller may or may not have deserved a Nobel Prize for his academic work on behavioral economics but as a practical guide to investing, his approach has been thoroughly refuted by real-world experience.

from Breakingviews:

UK’s strong GDP has a soft centre

By Ian Campbell

The author is a Reuters Breakingviews columnist. The opinions expressed are his own.

Fly the flag. The headlines will be about the solid milestone. The UK finally replanted its flag on its 2008 GDP growth peak, three years after Germany and the United States reclaimed theirs and after a mere five years of ultra-low interest rates. But the landscape – the details of the second-quarter GDP – has its uncomfortably rocky side.

from The Great Debate:

Sanctions finally find Russia’s Achilles heel

Russia's President Vladimir Putin gestures as he chairs a government meeting at the Novo-Ogaryovo state residence outside Moscow

Russian President Vladimir Putin and President Barack Obama were reportedly engaged in a heated telephone conversation last Thursday when Putin noted in passing that an aircraft had gone down in Ukraine. The tragic crash of the Malaysian airliner in rebel-held eastern Ukraine continues to dominate the headlines, but it is important to remember what agitated Putin and prompted the phone call in the first place -- sanctions.

Sanctions against Russia have been the centerpiece of the U.S. response to Putin’s interference in Ukraine. While they primarily have been directed against prominent friends of Putin and their businesses, the underlying target has been a weak Russian economy.  The sanctions have definitely found Russia’s Achilles’ heel, and with harsher sanctions looming in the aftermath of flight MA17, Putin is finding it increasingly difficult to craft an effective reply.

from The Great Debate:

The war in Gaza threatens Egypt too

A Palestinian woman wearing clothes stained with the blood of other relatives, who medics said were wounded in Israeli shelling, cries at a hospital in Gaza City

Cairo’s efforts to mediate between Israel and the Palestinians in Gaza, according to conventional wisdom, have largely been dictated by President Abdel Fattah al-Sisi’s animosity toward Hamas. After all, Hamas is an offshoot of the Muslim Brotherhood, which Sisi’s government has declared a terrorist organization and regards as a serious threat.

That is why, this argument goes, the Egyptian ceasefire proposal ignored Hamas’ conditions and why the Israelis so quickly supported it. The proposal called for an immediate ceasefire. Only then would the terms be negotiated, including Hamas’ demands for an end to Israeli attacks, an end to the blockade of Gaza and the release of rearrested Palestinians who were freed in a prisoner 2011 exchange.

from The Great Debate:

Life — if you can call it that — under Israel’s Iron Dome

 Israelis take cover on the side of a road as a siren sounds warning of incoming rockets outside the northern Gaza Strip

I’ve become pretty great at rocket dodging. As a New Yorker living in Tel Aviv while researching a book, I never thought I’d say that. And yet it’s true: since Hamas began firing rockets into Tel Aviv on July 8, I’ve learned to move quickly.

Out jogging when a siren blares? I have 90 seconds to find the nearest building with a bunker or drop down in a ditch, hands over my head. Driving a car? I have 90 seconds to pull over, get out and lie on the pavement, hands over my head.

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