Opinion

The Great Debate

How to trust BP again

The Environmental Protection Agency is allowing BP to once again bid on new leases in the Gulf of Mexico — which could happen as early as Wednesday.

As a condition of lifting its ban, the E.P.A. last week issued 53 pages of requirements for the company, which now must create a beefed-up code of conduct for employees; establish a zero tolerance policy for retaliation against whistleblowers; train senior leaders in ethics, and dole out bonuses related to issues like safety and environmental sustainability.

But BP had much of that in place before the 2010 Deepwater Horizon disaster, which killed 11 people and spilled millions of gallons of oil into the Gulf of Mexico. During my time as a manager of policy development at BP (which ended in 2008), I had to certify every year that I complied with the company’s code of conduct. I used the company hotline when I thought a manager was behaving inappropriately, and was impressed by how my complaint was handled.

Then came Deepwater Horizon. I was as appalled and angry as everyone else in the aftermath of the explosion, as BP repeatedly failed to cap the gushing well and multiple investigations portrayed BP as a company that took too many risks and cut corners in pursuit of profits.

I had to reconcile the BP I thought I knew well with the one that emerged after the disaster. I spoke with peers in other industries — like apparel and technology — that push for safer and more sustainable practices.

from Anatole Kaletsky:

Janet Yellen’s moment

When Janet Yellen chairs her first meeting of the Federal Open Market Committee Tuesday and Wednesday, she will be presented with a once-in-a-generation opportunity that even her predecessors in the world’s most powerful economic position have rarely enjoyed.

Not only can Yellen alter the guidance on interest rates with which the FOMC has been steering global financial markets. Beyond that she could do something far more profound and exciting: transform an entire generation’s way of thinking about economics, market forces and the role of government in achieving and maintaining prosperity.

To start with the obvious, Yellen will almost certainly change or simply abolish the unemployment “threshold” of 6.5 percent announced early last year as a reference point for the FOMC to start considering the possibility of higher interest rates -- perhaps setting a threshold of 5 percent or so. More radically, she could supplement the objective of lower unemployment with a range of other indicators that will need to improve before the Federal Reserve even considers any monetary tightening: for example, accelerating gross domestic product growth; strengthening productivity trends and eliminating the excess capacity in many industries that is now discouraging investment, hiring and productivity growth, as well as holding down corporate pricing power.

Putin’s imperial hangover

President Vladimir Putin’s impulsive incursion into Ukrainian territory has left Russia more isolated than at any time since the Cold War. Predictably, the European Union and the United States have loudly objected. More to the point, however, no country has rallied to Russia’s defense.

Such deafening silence reflects the degree to which Putin’s thinking is out of step with the modern world. With this action, Putin has revealed himself to be an imperial thinker in a post-colonial world.

Putin grew up at a time when Russia was the unquestioned center of a communist empire that had managed to suppress national challenges for decades. So while the rest of the world was dismantling their empires and transforming colonies into nations, the Soviet Union retained its empire until 1991. Putin — as the leading representative of the last Soviet generation — acquired the mindset of Russia’s natural hegemony and never accepted the post-Soviet republic’s place in the expanding community of nations.

from Reihan Salam:

How to fix higher education

America’s elite higher education institutions are the envy of the world. Foreign students flock to the oldest and wealthiest U.S. research universities to take advantage of resources that are unparalleled, thanks to the deep pockets of many centuries’ worth of captains of industry.

Yet when we consider the post-secondary institutions that educate the typical American high school grad, we see a very different picture. While the share of Americans who enroll in higher education has grown substantially in recent decades, graduation rates have been stagnant.

Community colleges promise an affordable education to millions of students, but they often fail to offer the courses students need to complete a degree in a reasonable amount of time. Public colleges and universities churn out graduates who are forced to take jobs that don’t actually require a four-year post-secondary education. Most private non-profits do the same, and they’re also notorious for charging obscene tuition that their graduates can scarcely afford. And private for-profits, which have grown enormously by taking on some of the hardest-to-accommodate students, stand accused of loading up their students with debt without offering them marketable skills.

from Jack Shafer:

The jumbo coverage of Malaysia flight MH370

When a big story breaks, my news digestion knows no satiety. Earthquake, assassination, invasion, bank run, political campaign, celebrity court case, sport scandal or a drunk stubs his toe on the Lower East Side -- I can handle anything the press swarm sends at me.

So unlike Fox News press reporter Howard Kurtz ("It’s too much with too few facts," he said last week of the saturation reporting by his former network, CNN, about Malaysia Airlines Flight MH370), I can handle any "over"-coverage the news machine chooses to throw my way. By handle, I usually mean avoid, but on a story like MH370, I desire the sort of coverage that could fill the Indian Ocean, which I did not know until last week had an average depth of 2.5 miles.

That fact was only one of the scores of news nuggets I've chewed and swallowed since the airliner was reported missing on March 8. While I'm aware that the flight's fate, its back story, and repercussions will have no impact on my life, and that there aren't enough degrees of Kevin Bacon to connect me to 95 percent of the missing passengers, I have clawed my way through stories and even stayed up at night to learn about transponders, the different kinds of radars, the stolen passport business, the number of air strips within MH370's flight range that could have accommodated a landing, general Malaysian political incompetence, Southeast Asian geography, satellite telemetry, international relations, black boxes, the workings of the Malaysian criminal justice system, the Andaman Islands, life raft locator radios, search technologies, air navigation and more. One measure of my devotion to this story is that I even watched an oceanographer talk on Charlie Rose about the missing aircraft.

To punish Putin, help Ukraine

Sunday’s referendum in Crimea and provocative Russian troop maneuvers have raised the Ukraine crisis to new heights.

Congress has expressed strong support for Ukraine and condemned Russia’s seizure of Crimea. Unfortunately, some on Capitol Hill are pushing ideas that would do little to punish Moscow while undercutting U.S. and NATO security interests. Congress needs to be smart in how it seeks to help Ukraine and punish Russia.

A whirlwind has engulfed Ukraine since former President Viktor Yanukovich fled Kiev on February 21 and the Russian military occupied Crimea one week later. In response, Democrats and Republicans have backed Ukraine, called for Moscow’s international isolation, and supported steps to assure NATO allies in Central Europe.

from Anatole Kaletsky:

Japan as the crisis next time

Which major economy is most likely to disappoint expectations this year, and perhaps even cause a financial crisis big enough to break the momentum of global economic recovery? The usual suspects are China and southern Europe. But in my view the most likely culprit will be Japan.

While Japan no longer attracts much attention these days, it is still the world’s third-largest economy, with a gross domestic product equal to France, Italy, Spain, and Portugal combined. Its industries still pose the main competitive challenge to U.S., European and Korean manufacturers, and its regional weight is still sufficient to trigger financial crises across the whole of Asia -- as it did in 1997.

To make matters worse, the Japanese government bond market is in an enormous financial bubble that could burst catastrophically if Prime Minister Shinzo Abe’s audacious economic program is seen to have failed.

Confederation: An off-ramp for the Ukrainian crisis

The United States has no good options with regard to Crimea.

The best outcome would be for Crimea to remain an integral part of Ukraine. This will not happen. The next best outcome would be to give Crimea even more autonomy within Ukraine than it now has, federalism on steroids. This is highly unlikely.

The next best outcome would be a confederal arrangement in which Crimea remains formally a part of Ukraine, but would have autonomy over elements of both its foreign and domestic affairs. This is possible but will require adroit diplomacy — not just threats and sanctions from the United States and the West.

The worst outcome would be for Crimea to be incorporated into Russia. On the current track, this may be where we end up.

Democrats: Beware the Ides of March

For Democrats, the Ides of March came early this year.

On March 11, to be precise, in a special election in a swing congressional district in Florida. A mostly unknown Republican knocked off a much better known Democrat, just like Roman conspirators knocked off Julius Caesar in 44 B.C. Caesar’s killers used a knife. The Republicans’ deadly weapon? Obamacare. Three-quarters of Republican TV spots mentioned Obamacare.

Democrats need to practice saying, “Just wait until next time.” Because while 2014 is looking worse and worse for Democrats, 2016 is looking better and better.

Midterm elections like 2014 are not about choosing a leader. They’re about sending a message.

from Jack Shafer:

It’s an ad, ad, ad, ad world

The last place you'd expect to discover a map to navigate the future of the content-advertising landscape would be a book about the golden age of radio. But damn it all to hell, there it is on the concluding 12 pages of Cynthia B. Meyers' new book, A Word From Our Sponsor: Admen, Advertising, and the Golden Age of Radio.

Not to discourage you from reading Meyers' first 281 pages about the co-evolution of broadcasting and advertising before excavating her new media insights, but this is one of those books that demands to be read backwards -- conclusion first, historical arguments and research later. In Meyers' view, advertising is not something appended to radio and TV broadcasts or shimmied into the pages of newspapers and magazines. Advertising has been both the dog wagging the tail and the tail wagging the dog, sometimes occupying points in between, its symbiotic relationship with popular media forever ebbing and cresting. And while the past never predicts the future, this book gives readers a peak around the media future's corner.

The commercial Web that permeates our culture today was revolutionary because it allowed news and entertainment content to migrate from the lockdown of the radio and TV networks, as well as from print. But that migration was already in progress when the first banner ad (for AT&T) ran on Hotwire.com in late 1994. A decade before, cable had given advertisers new venues to place their TV bets, and VCRs (and later DVRs) gave viewers the power to time-shift and edit ads out of their consumption. The advent of videotape and discs further liberated audiences from advertising's hold.

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